Bitcoin is a decentralized electronic cash system using peer-to-peer networking to enable payments between parties without relying on mutual trust. It was first described in a paper by Satoshi Nakamoto (widely presumed to be a pseudonym) in 2008. Payments are made in bitcoins (BTC's), which are digital coins issued and transferred by the Bitcoin network.

1. Bitcoin!
SHANTANU SINGH
1200112202
DEPARTMENT OF CSE, INTEGRAL UNIVERSITY

2. What is Bitcoin?
►Decentralized Digital Currency
►Like virtual cash or gold
►Transferred person-to-person
►No bank or government prerequisites
or control
►BTC ,

3. History of Bitcoin
 First mentioned in a 2008 paper published under the name Satoshi
Nakamoto.
 The price of bitcoins has fluctuated wildly since its inception.
 In 2011, the value of one bitcoin rapidly rose from about US$0.30 to
US$32 before returning to US$2
 During the 2012-2013 Cypriot Financial Crisis, the bitcoin price began to
rise, reaching a peak of US$266 on 10 April 2013
 In the end of 2013, the cost of one bitcoin rose to the all-round peak of
US$1135, but fell to the price of US$693 three days later.

4. Satoshi Nakamoto’s Research

5. Some Facts
 Limited to 21 million bitcoins
 X amount released every ~10 minutes
 Until 2140
 Divisible to .00000001 (USD = .01)
 Very difficult & expensive to hack
 Controlled by the consensus of market participants

6. Why Does Bitcoin Have Values?
 Limited / Scarce (like gold)
 Decentralized (no government)
 Peer-to-Peer (like torrents)
 Can be anonymous
 Transparent (open source)
 Trusted (vetted for over 5 years)
 Easy to buy and sell
 Extremely low transaction fee
 Irreversible (no chargebacks)

7. How Does Bitcoin Work?
 Two parts of a Bitcoin “account”
1. Public Key – account number / address
(27-34 alphanumeric characters)
2. Private Key – password to access bitcoins in the account
 Public Key Example –
1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx

8. How Do You Get Bitcoins?
 Three ways to acquire Bitcoins:
1. Buy (from a person or exchange)
2. Barter (sell product or service)
3. Mine (run software to buy bitcoins)

9. How Can You Profit With Bitcoin?
 Mine, then sell (becoming increasingly more difficult)
 Invest or trade
 Buy & Hold = very risky
 Short-term trading
 Offer discounts in products / services for payment in BTC

10. Bitcoin Speculation
 Bitcoin has increased in value over 10,000% in a short period
of time
 Many price crashes of 50% or more
 Price has recovered after each crash
 The “big question”
“Will Bitcoin become widely accepted as a form of payment
and a store of value?”

11. June 2011 Bubble

12. April 2013 Bubble

13. November 2013 Bubble

14. Bitcoin Speculation Tip
 Don’t chase emotional buying
 Do the opposite of the herd
 Consider the risk and your goals
 Is day trading really riskier than the “buy and hope”
mentality?

15. Bitcoin Wallet
 Stores your Bitcoin
 Four type of Wallets:
1. Software on local hard drive
2. Mobile
3. Hosted Online
4. Paper
 bitcoin.org/en/choose-your-wallet

16. Copay: HD-Multisignature Wallet

17. Hardware Wallets
►Ledger Nano is a hardware wallet built upon a
ST23YT66 banking smartcard platform.
►Trezor is able to sign transactions while connected
to an online device.

18. Advantages / Disadvantages
 Advantages
 Payment Freedom
 Very low fees
 Fewer risks for merchants
 Security and control
 Transparent and Neutral
 Disadvantages
 Degree of Acceptance
 Volatility
 Ongoing Development

19. Thank You for your patient listening!!
1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx
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