It is all about bitcoin and cryptocurrency market, external and internal competitive forces analysis.

1. Team Lamborghini

2. Chittagong Independent University

3. Bitcoin and
Cryptocurrency
Technology

4. Introduction
 Money is considered to be the most important
tools of world's financial systems.
 Some of the financial decisions taken by world
powers has resulted in numerous recessions and
financial meltdowns.
 This might be the main reason behind the
innovation of digital cryptographic currency.

5. Global
Cryptocurrency Market
 The journey of cryptocurrency market start with the innovation of
“Bitcoin” in 2009.
 From 2009 to 2018, already 200 cryptocurrencies are operating.
 The majority of cryptocurrencies are largely clones of bitcoin or
other cryptocurrencies.
 Cryptocurrencies can be very popular in countries with less
developed financial infrastructure but high smartphone usage.

6. The Major
Cryptocurrencies
 MONERO
 RIPPLE
 Litcoin
 Ethereum
 Bitcoin

7. Comparative Analysis
of Bitcoin and
Other Cryptocurrencies

8. Cryptocurrencies
by Market Share
Bitcoin
43%
Enthereum
19%
Ripple
9%
Litcoin
3%
Others
26%
CRYPTOCURRENCIES BY MARKET SHARE

9. Market Position of
Bitcoin and Other
Major Cryptocurrencies
High
Low
Low High
Ripple
Litcoin
Monero
Ethereum
Public Interest
Bitcoin

10. The term
'Blockchain'
 A blockchain is a digitized, decentralized, public
ledger of all cryptocurrency transactions.
 It allows market participants to keep track of digital
currency transactions without central record keeping.
 Originally developed as the accounting method for
the virtual currency Bitcoin.
 Currently, the Block chain technology is used to verify
transactions.

11. What is Bitcoin?
 Bitcoin is the first decentralized digital currency which
works without a central bank.
 Bitcoin was originally developed by Satoshi Nakamoto
in 2009 as a strictly peer-to-peer electronic payment
system.
 Bitcoins can be exchanged for other currencies,
products and services.
 Research produced by the University of Cambridge
estimates that in 5.8 million unique users of
cryptocurrency wallet, most of them using bitcoin.

12. How Bitcoin work?
• Bitcoins are completely virtual coins designed to be 'self-
contained' for their value, with no need for banks to move
and store the money.
• Bitcoins behave like physical gold coins.
• People can use their bitcoins to purchase goods and
services online.
• Bitcoins are traded from one personal 'wallet' to another.
• Once user have installed a Bitcoin wallet on their computer
or mobile phone, it will generate their first Bitcoin address.

13. Bitcoin Technology Market

14. Bitcoin
Technology Market
Denominations
• Bitcoin (BTC),
• Millibitcoin
(mBTC)
• Microbitcoin
(uBTC)
• Satoshi.
Services
• Bitcoin exchanges,
• Remittance
services,
• Payment & wallet
services.
Industry verticals
• Mining,
• Banking and
financial services,
• Entertainment
and media.

15. SWOT Analysis

16. Strengths
• Security- no one can alter Bitcoin transactions on the internet, because
only the person that holds the private key to an account can sign
transactions out of it.
• Anonymity- The public can see which account number is transferring what
amount to what account number but there is no public mapping between
a user's identity and their account number.
• Fraud resistance- once a transaction takes place, it cannot be reversed, it
provides mechanism that protects both sellers and buyers.

17. Continues…
• Division and combination- Can be divided up to 8 decimal points whereas
normal currencies are dividable in to 2 decimal points.
• No physicality- Bitcoin transactions do not need any physical instrument
such as bank bills, and so it does not require bank vaults to store wealth.

18. Weakness
• Breaking anonymity through transaction history- all Bitcoin transactions
for the whole history of Bitcoin can be traced back to the mining
transaction that created them.
• Lost Bitcoins- this can happen when you store them in failed hard disks
and since you need a private key to transfer money, the coins are
considered to be lost forever.

19. Deflation and
hording problem

20. Opportunities
• Active software development community- Due to its design flexibility and
openness, the Bitcoin ecosystem allows new applications and businesses
be developed around it.
• Dependable savings- Because of the clarity in accounting, unchangeable
transactions and impossibility of double spending, the Bitcoin model
presents a good solution to the problem of trusting banks.
• Decrease on transfer fees- you do not have to abide by regulatory laws
like other online financial institutions; you can include an optional reward
based on the size of the transaction.

21. Threats
• Identification through IP address- The IP address used in the transaction,
could point to a person’s location.
• Identification through the Point of Sale/Exchange- anonymity of the
person is lost if he provides his physical address for eg. While buying a
book online.
• Heists and Robberies- Bitcoins are usually stored in a digital wallets and
they can be accessed by hackers.
• Possible Usage in Criminal Scenarios- bitcoins provide high level of
anonymity and so many illegal goods such as Narcotics, guns, illegal drugs
etc can be sold on the web.

22. Bitcoin and
Bangladesh
• Not legal in Bangladesh
• punishable by law
• could be jailed for up to 12 years
• Bangladesh Bank, is not so keen on granting the permission for
cryptocurrency though young freelancers and investors are really keen to
invest in the cryptocurrency market.
• Considering the pros and cons of advantages and disadvantages of
cryptocurrency, Bangladesh Bank may express their actual and clear
viewpoint for the legality of such currencies in Bangladesh Economy. Till
then freelancers and investors of Bangladesh have to wait.

24. Threat of
Substitute Products
• High because their system is not patented

25. MARKET
( CRYPTO CURRENCY )
PRODUCTS
( BITCOIN )
SUBSTITUTES
Ethereum,
Ripple, Litecoin
and IOTA &
Dash…

26. Threat of New
Entrants
• It is very easy because BTC is open source and not Patented…

27. Bargaining Power
of Customers
• Consumer power is moderate for Bitcoin…

28. Bargaining power
of Suppliers
• Bitcoin is not supplied by anyone…

29. Competitive
Rivalry
• Competitive rivalry is moderate for bitcoin
• Competitions from ‘Monorum’ and ‘Eurotherm

31. Pollitical Analysis
1. Not controlled by any government body
2. China, Russia? - Banks barred from accepting bitcoin
3. United States, Canada & EU considered Pro-bitcoin

32. Economic Analysis
1. Market capitalization exceeds $6 billion- 0.008% of global GDP of $78
trillion
2. 21 million Bitcoins in existence today and 15,359,800 in circulation
3. Over 88,000 merchants currently use Bitcoin

33. Social Analysis
1. Driving force- Anonymity, Reach and Savings
2. Low-level awareness & Usage

34. Technological
Factors
• Bitcoin public ledger (Block chain) is being leveraged…

35. Environmental
Factors
1. As demand grows, more computational power required
2. Miners to find alternative source of electricity- cheap coal in old plants
3. Carbon footprint- associated with 1.5 tons of CO2 emission/ Bitcoin

36. Legal Factors
• Decentralized nature of the coin hinders any form of regulatory effort
changing Countries such as Canada, U.S.A, and E.U …

37. • Amazon bitcoin" is searched for on the internet more than 18,000 times
per month, according to kwfinder.com …
• Amazon Coin" be a Game-Changer

38. Impact of Bitcoin on Banking,
Finance and the Economies

39. Impact of Bitcoin on
Banking, Finance and
the Economies
• Power to the dark web
• Speculations
• Politicization of money
• Apprehension among the Central Banks
• The emergence of new markets

40. Bitcoin is Changing
the Global Economy…
Financial and economic experts are expecting the cryptocurrency to
remain robust and will eventually create a lasting and significant
impact on the global economy
• Reduced reliance on flat money
• Access to a credit system
• Regulation of cryptocurrencies
• Impact on overseas remittances
• Environmentalism and the economy.

41. Impact of Bitcoin on Global
Currency

42. Impact of Bitcoin
on Global Currency
• The Internal Revenue Service (IRS) is livid at the thought of a currency that
they cannot track or find a way to regulate. This means that an anonymous
someone could pay for a good or service anywhere in the world and be
paid by another anonymous person somewhere else in the world

43. Continues...
• It’s very easy to participate in and use bitcoin
• Bitcoin is cost effective and flexible

44. Continues...
• Bitcoin's unique fee structure achieves four important things:
1. Bitcoin pays no attention to user logistics.
2. It supports micro-payments.
3. It supports macro-payments
4. It provides the sender with a tool to incent the bitcoin network to
validate their transaction.

45. Continues...
• it’s secure, It's difficult edging on the realm of impossible to de-fraud the
bitcoin network
• Bitcoin is a 'push' payment system
• Conventional payment networks primarily use 'pull' payments
• Bitcoin is indemnified

46. Risk Associated with bitcoin

47. Risk Associated
with bitcoin
Cyber Attacks
and Hacking
Price
Fluctuation and
Inflation
Uncertainties in
the
Government
Policies
Fraud

48. Cyber Attacks and
Hacking
• Virtual bank robbery ( i.e. Distributed Danial-of-service)
• Lack of insurance
• Consumer protection

49. Price Fluctuation
and Inflation
• Volatility of bitcoin is extremely high
• Uncertainty and reduced confidence in the virtual currency
• No artificial inflation or deflation of the currency

50. Fraud
• Less privacy
• Harming the customers personally
• Decreasing the value of the currency
• Economical damage

51. Uncertainties in the
Government Policies
• Status and treatment of bitcoin in the economy
• Declare bitcoin illegal
• Helpless investors leaving them with no remedies

52. Recommendation
• Do not use web wallets
• Limit the access to corporate bitcoin wallets
• Use a dedicated hardware
• Never invest more than you are willing/able to lose
• Make sure to buy bitcoin only from exchanges that
have proven their reputation
• Buy bitcoin through dollar cost averaging

53. Conclusion
• Governments should not stop bitcoin for three
reasons:
1. It's not illegal
2. Economic advantages
3. Ability to target bitcoin network directly
• Too many unknown variable
• World is forever changing, and governments and
businesses must stay abreast of these changes if
they want to maintain their positions of power in
the future