one National Level Seminar

2. DEFECTS OF CRYPTOCURRENCY
Dr. R. MUTHUKRISHNAVENI,
M.Com., M.B.A., M.Phil., Ph.D., P.G.D.C.A.,
Assistant Professor of Commerce,
Saiva Bhanu Kshatriya College, Aruppukottai.

3. Introduction
• Cryptocurrencies are a type of digital currency
decentralized and not controlled by any government. The
history of cryptocurrencies can be traced back to the
1980s, when they were called cyber currencies. These
coins started gaining in popularity in 2008 with the
introduction of Bitcoin, which was created by an
anonymous programmer or group of programmers under
the name Satoshi Nakamoto. Since the launch of Bitcoin
in 2009, cryptocurrencies have been all the rage. Over the
past few years, their popularity has only grown, with more
and more people investing in them. But what are they?
And where did they come from?

4. Idea of Cryptocurrencies – 1980s
• The cryptocurrency was first mentioned in
1989, and a few years after in 1980,
American cryptographer David Chaum
invented digital cash, which relied on
cryptography to secure and verify
transactions
• But it was only in the early 1990s that
cryptographic protocols and software began
to be developed that would make possible
the creation of a truly decentralized digital
currency.
• In October 2008, a paper by Satoshi
Nakamoto (a pseudonym) titled Bitcoin: A
Peer-to-Peer Electronic Cash System
outlined a system for creating a digital
currency that did not require trust in any
third party. Nakamoto’s paper effectively
launched the cryptocurrency revolution.

5. The Launch of Bitcoin – 2009
• Bitcoin is a cryptocurrency
and worldwide payment
system. Satoshi Nakamoto
created the Bitcoin protocol
in 2009, the same year it
launched as open-source
software.
• The first Bitcoin transaction
took place between
Nakamoto and Hal Finney
on 12th January, 2009.

6. The initial Crypto Market Development

7. The Era of Crypto Scams

8. Bitcoin’s Rise to Popularity
• Bitcoin has been the subject
of many discussions and
debates, but it isn’t easy to
pinpoint when Bitcoin first
became popularized. Many
believe that Bitcoin’s rise
was in 2017, increasing from
$1,000 to $20,000 before
crashing back down below
$10,000.

9. Bottom Line
• The cryptocurrency market
is booming, and it’s only
expected to get bigger. As
the digital economy
continues to grow at an
astronomical rate,
cryptocurrencies are sure to
play a large role in what
makes up our future money
system.

10. Meaning of CRYPTOCURRENCY
• A cryptocurrency is an
encrypted data string that
denotes a unit of currency. It
is monitored and organized
by a peer-to-peer network
called a blockchain, which
also serves as a secure
ledger of transactions, e.g.,
buying, selling, and
transferring.

11. Way to buying/investing in Cryptocurrency
• Choose a Broker or Crypto Exchange
• Create and Verify Your Account
• Deposit Cash to Invest
• Place Your Cryptocurrency Order
• Select a Storage Method

12. Alternatives Ways to Buy Cryptocurrency
• Wait for Crypto Exchange-Traded Funds (ETFs)
• Invest in Companies Connected to Cryptocurrency

13. Advantages of Cryptocurrency
• Protection from inflation
• Self-governed and managed
• Decentralized
• Cost-effective mode of transaction
• Currency exchanges finish smoothly
• Secure and private
• Easy transfer of funds

14. Disadvantages of Cryptocurrency
• Illegal transactions
• Risk of Data Loss
• Power lies in few hands
• Buying NFTs with other tokens
• No refund or cancellation
• High consumption of Energy
• Vulnerable to hacks

15. Conclusion
• cryptocurrency has both pros and cons, so you have to
be careful while you are investing or trading with
cryptocurrency. Before investing in cryptocurrency
you should have all pros and cons in your mind.
Especially mentioned above, you can’t ignore these
pros and cons because these are major and critical

16. Thank you