Quick overview on the Bitcoin

1. THE BITCOIN
Presented By
Mohamed Sakr
Menatallah Mohamed
Mohamed Sayed
Ayman Fahmy

2. AGENDA
• Introduction
• The Block Chain
• Bitcoin Price Volatility
• Egyptian View on the Bitcoin
• Global View of the Bitcoin
• How to Buy a Bitcoin
• Endorsements of the Bitcoin
• The Dark side of the Bitcoin
• Regulations
• Conclusion

3. INTRODUCTION
• Cryptocurrency –
decentralized
• Exists since 1980s – double
spending – Satoshi
Nakamoto in 2009
• 21 Million bitcoins – year
2140
• Advantages :
• Lasts forever
• Can be verified
• Anonymous

5. BLOCKCHAIN WORKING TECHNIQUE

7. BITCOIN MINING

9. BITCOIN PRICE VOLATILITY

10. BITCOIN
PRICE
VOLATILITY
• Highly speculative , market
largely unregulated
• Quick profits ~ day traders
gain money by tracking its
short term trends
• Interest from different
countries

12. VOLATILITY REASONS
• News effect
• Government Regulations
• Security Breaches
• No clear store for value ~ question of assets
• Tax treatment

13. EGYPTIAN VIEW OF BITCOIN

14. STATUS IN
EGYPT
• not authorized or
supervised by the
authorities
• no current rules
• Dealing in foreign
exchanges limited to banks
accredited

15. STATUS IN EGYPT CONTINUED
• Ethereum & hardware
• Computer enthusiasts + Forex Traders + Another Source
of Money

16. STARTUPS IN EGYPT

17. GLOBAL VIEW OF
BITCOIN
STATUS AND ENDORSEMENTS

18. BITCOIN STATUS ON THE MAP

19. WHICH
COUNTRIES
BANNED
BITCOIN ?

20. SOUTH AMERICA & PART OF
EUROPE & RUSSIA
Ecuador Iceland Bolivia

21. ASIA
India Thailand
China
Vietnam
Bangladesh

22. WHICH
COUNTRIES
ALLOW
BITCOIN ?

25. HOW TO BUY A BITCOIN ?

26. STEP 1
• Find a good
Bitcoin wallet

27. STEP 2
• Choose the right Bitcoin
exchange

28. STEP 3
• Select your
payment
method

29. STEP 4 & STEP 5
• Buy some Bitcoins and store
them in your wallet
• Start doing something with
Bitcoin

30. BITCOIN ENDORSEMENTS FROM THE
RICH AND FAMOUS

31. BITCOIN ENDORSEMENTS FROM THE
RICH AND FAMOUS

32. BITCOIN
ENDORSEME
NTS FROM
THE RICH
AND
FAMOUS

33. THE DARK SIDE OF THE
BITCOIN

34. WHAT MAKES
BITCOINS
ATTRACTIVE FOR
ILLEGALACTIVITY?

35. RANSOMWARE
ATTACKS ARE
ON THE RISE
• As a conclusion on
the argument is
Bitcoin could be
used for illegal
activity or not
• One second please!
Some people see
that Bitcoin
shouldn’t be used
for illegal
activities…why?

36. Bitcoin States Regulations

37. APPLICABLE LAWS

38. “
”
Whoever Makes, Issues, Circulates, Or
Pays Out Any Note, Check,
Memorandum, Token, Or Other
Obligation, Intended To Circulate As
Money Or To Be Received Or Used In
Lieu Of Lawful Money Of The United
States, Shall Be Fined Under This Title
Or Imprisoned Not More Than Six
Months, Or Both.
Argument
Congress Did Not Anticipate
Bitcoin And It Is Thus Not Within
The Scope Of The Stamp
Payments Act.
The Stamp Payments Act 1862

39. APPLICABLE LAWS
THE SECURITIES ACT
• The use of Bitcoin as an investment tool has
brought it to the attention of the Securities and
Exchange Commission (“SEC”),
• The exchanges would have to register with the
agency, file public reports (which would provide
better information to purchasers and the
government) and be liable for instances of fraud
Argument
Is it Currency or Security

40. The Electronic Funds Transfer Act ( EFTA)
• (EFTA) Regulates financial institutions that both hold accounts
belonging to customers and perform electronic funds transfers
• Requires those institutions to take consumer protection measures
such as reversal rights on transactions
Argument
• Bitcoin system itself does not qualify as a financial institution~ a
decentralized program on which users may transact with each other
directly.
• Yet, Bitcoin exchanges may fall under the purview of the EFTA

41. BITCOIN & FEDERAL AGENCIES

42. FinCEN ( Financial Crimes Enfoncement Networks )
• On March 18, 2013, the FinCEN issued guidance
clarifying that certain businesses or individuals who
use or make a business of exchanging, accepting, and
transmitting virtual currencies were subject to the
requirements of the Bank secrecy Act (BSA). The
anti-money laundering and counter-terrorism
financing law.
• Some observers believe this administrative ruling
might expand the reach of FinCEN registration
requirements to Bitcoin processors which route
Bitcoin from customers to merchants, creating
reporting and compliance standards on essentially
any company that transfers Bitcoin in commerce.

43. THE FEDERAL BUREAU
OF INVESTIGATION (FBI)
• In 2013, the FBI shut down Silk Road, a website
that acted as a virtual black market and operated
using only Bitcoin to purchase drugs, forged
documents, and even possibly killers for hire.
• In a dramatic arrest in the San Francisco Public
Library, the Silk Road’s alleged mastermind Ross
Ulbricht (known online as the Dread Pirate
Roberts) was captured with his laptop open.
• Ulbricht’s laptop was purportedly a hub of more
than $1.2 billion worth of transactions in illicit
substances and key to the FBI seizure of Ulbricht’s
own personal stash of Bitcoin, valued at the time at
$80 million.

44. The IRS (Internal Revenue Service Tax Agency )
• On March 25, 2014 the IRS issued a notice stating that for federal tax purposes,
the IRS would treat virtual currency as property, rather than currency.
• Treating Bitcoin as property has profound implications for Bitcoin transactions
as it creates new income tax liabilities
• For instance, if an individual acquired a Bitcoin for one dollar and subsequently
used it to purchase a three-dollar cup of coffee, this transaction would trigger two
dollars in capital gains for the purchaser of coffee (because his original
investment was one dollar) and three dollars of gross income for the coffee seller.
Simply tracking this sort of information might be prohibitively difficult or
tedious.

45. CONSUMER
FINANCIAL
PROTECTION
BUREAU
• Although the CFPB has not taken any direct action to
regulate Bitcoin yet, in August 2014 the CFPB issued a
consumer advisory statement warning the public of the risk
of Bitcoin.
• The advisory warned consumers about potential hackers,
that Bitcoin offered fewer protections as compared to
banks or debit and credit card providers, and had
potentially higher costs and scams.
• The CFPB has also begun accepting complaints about
virtual currency products and services, including wallets
and exchanges.

46. SUGGESTIONS FOR THE FUTURE
• First, regulators must seek to create a system where Bitcoins are treated only
as a currency, allowing consumers and merchants to feel more comfortable
relying on Bitcoin as a medium of exchange.
• To accomplish this goal, the IRS’s current policy of treating Bitcoin as
property must change.

47. Suggestions For The Future
• Second goal is to tie the Bitcoin user identities
with real identities to remove the mystery in the
transactions

48. CONCLUSION