Bitcoins are stored in your digital wallet. When you transfer bitcoins an electronic
signature is added. After few minutes the transaction is verified and stored in the
● Requires signature, it’s based on math rather than handwriting.
● When a new account number is created, it comes along with a private key
mathematically linked to that account number. If you’ve heard of a Bitcoin wallet,
these keys are what it holds, and are what allow you to create signatures.
● Unlike the handwritten version, these signatures can’t be cpopied and reused in the
future, as they’re unique to each transaction.
MAINTAINING THE LEDGER
Signatures keep unauthorized transactions from changing the ledger.
Provide decentralized system.
Every time someone sends money, a transaction message is passed around to all the
people who want to
help maintain the ledger, called miners. Each miners keeps a personal copy of the
ledger and updates it whenever they receive a new transaction with a valid signature.
HOW DOES THE MONEY GET CREATED?
● Every time a puzzle is solved, a small award is added to the solver’s balance.
● The voting system simply provides a convenient way to randomly
distribute money into the world, and in fact, after 2140 no more money
will be created.
BITCOIN GOOD OR BAD?
● This virtual currency is gaining huge popularity worldwide and mass adoption.
● There are quite a few advantages that make Bitcoin a one of a kind digital currency
that has no likeness. Of course, because nothing is perfect, Bitcoin does have its
● Bitcoin was considered to be a scam due to it’s several negative factors. But over
the time when experts from various sectors started examining Bitcoin, they
understood the power of digital currencies and started to look it in a positive way.
If Bitcoin has many advantages it also carries various disadvantages as well.
ADVANTAGES OF BITCOIN
● Anonymous and Private
● Payment Freedom
● Low/Minimal Fees
● Fewer risks for merchants
● It’s fast
● Central governments can’t take it
● People can’t steal your payment information from merchants
DISADVANTAGES OF BITCOIN
● Bitcoins Are Not Widely Accepted
● Wallets Can Be Lost
● Bitcoin Valuation Fluctuates
● No Buyer Protection
● Risk of Unknown Technical Flaws
● Built in Deflation
● No Physical Form
● No Valuation Guarantee
THERE CAN BE ONLY 21 MILLIONS BITCOINS
1 BITCOIN = $6,104.09 (AS OF 31ST OCTOBER 2017)
BITCOIN IN NEPAL
Central Bank of Nepal is not able to track the transaction and is a high risk for going
outward remittance for buying bitcoins than inward remittance.
A lot has changed in terms of perception and in terms of where digital currencies are.
Digital currencies are here and have set a solid foothold in the world economy. Its
acceptance has accelerated, governments around the world are realizing its
importance and its value. One thing is for sure, digital currencies will do more good to
the people of the country than harm. Hope that the government will soon realize its
endless possibilities and formulate regulations that support innovation and growth.
LEGALITY OF BITCOIN
● On 18 August 2008, the domain name bitcoin.org was registered.
● In November that year, a link to a paper authored by Satoshi Nakamoto titled Bitcoin:
A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list.
● Nakamoto implemented the bitcoin software as open source code and released it in
January 2009. The identity of Nakamoto remains unknown, though many have
claimed to know it.