Bitcoin is a digital currency introduced in 2008 that allows for peer-to-peer electronic cash transactions without a central authority. It was the first to implement blockchain technology, which maintains a public ledger of all transactions. Though volatile, the value of bitcoin has generally increased since its inception. Transactions are confirmed through mining, which involves solving complex cryptographic problems to validate blocks of transactions and maintain the blockchain. Bitcoin offers advantages like low fees, microtransaction capability, and protection for merchants against fraud. However, it also faces challenges around acceptance, volatility, and ongoing development as a new technology.

1. BITCOIN
The Money of The Future

2.  Bitcoin is the peer-to-peer electronic cash system introduced by an
anonymous developer called Satoshi Nakamoto.
 Nakamoto introduced bitcoin on 31 October 2008 to a cryptography
mailing list (metzdowd.com) and released it as open-source software in
2009.
 Bitcoin is the first to implement the blockchain and also deploying
decentralized digital currency.
 As for today, 1 bitcoin is equals to approx. 1 Lakh Indian Rupees. (on
2017 Mar 4th)
 Though the rate of Bitcoin is extremely volatile, in average the rate is
going up as we talk about it.

3.  As for new user who are interested in using it rather than understanding:
 Installed a Bitcoin wallet on your computer or mobile phone
 Generate your first Bitcoin Wallet Address
 Disclose your address to your friends so that they can pay you or vice versa.

4.  Block chain is a shared public
ledger on which the entire Bitcoin
network relies.
 All confirmed transactions are
included in the block chain.
 This way, Bitcoin wallets can calculate
their spendable balance and new
transactions can be verified.
 The integrity and the chronological
order of the block chain are enforced
with cryptography.

5.  A transaction is a transfer of value between Bitcoin wallets that gets included
in the block chain.
 Bitcoin wallets keep a secret piece of data called a private key or seed, which
is used to sign transactions, providing a mathematical proof that they have
come from the owner of the wallet.
 The signature also prevents the transaction from being altered by anybody
once it has been issued. All transactions are broadcast between users and
usually begin to be confirmed by the network in the following 10 minutes,
through a process called mining.

6.  confirm waiting transactions by including them in the block chain.
 To be confirmed, transactions must be packed in a block that fits very
strict cryptographic rules.
 These rules prevent previous blocks from being modified because doing
so would invalidate all following blocks.
 Mining prevents any individual from easily adding new blocks
consecutively in the block chain.
 This way, no individuals can control what is included in the block chain
or replace parts of the block chain to roll back their own spends.

7.  Payment freedom – It is possible to send and receive any amount of money
instantly anywhere in the world at any time. No bank holidays. No borders. No
imposed limits. Bitcoin allows its users to be in full control of their money.
 Very low fees – Bitcoin payments are currently processed with either no fees
or extremely small fees. Users may include fees with transactions to receive
priority processing, which results in faster confirmation of transactions by the
network.
 Attractive for microtransactions – Because the fees are so low, bitcoins can be
used intransactions that are economically unattractive for most merchants,
especially in developing countries.
 Fewer risks for merchants – Bitcoin transactions are secure, irreversible, and
do not contain customers’ sensitive or personal information. This protects
merchants from losses caused by fraud or fraudulent chargebacks.

9. Source : Triennial Survey (Apr. 2016)
$5.1 trillion US Dollars

11.  As payment for goods or services.
 Purchase bitcoins at a Bitcoin exchange.
 Exchange bitcoins with someone near you.
 Earn bitcoins through competitive mining.
While it may be possible to find individuals who wish to sell bitcoins
in exchange for a credit card or PayPal payment, most exchanges do not allow
funding via these payment methods. This is due to cases where someone buys
bitcoins with PayPal and then reverses their half of the transaction. This is
commonly referred to as a chargeback.

12.  Acceptance – Many people are still unaware of Bitcoin. Every day, more
businesses accept bitcoins because they want the advantages of doing so, but
the list remains small and still needs to grow in order to benefit from network
effects.
 Volatility – The total value of bitcoins in circulation and the number of
businesses using Bitcoin are still very small. Therefore, relatively small events,
trades, or business activities can significantly affect the price. In theory, this
volatility will decrease as Bitcoin markets and the technology matures. Never
before has the world seen a start-up digital currency, so it is difficult to forecast
how it will play out.
 Ongoing development – Bitcoin software is still in beta with many incomplete
features in active development. New tools, features, and services are being
developed to make Bitcoin more secure and accessible to the masses. Some of
these are still not ready for everyone. Most Bitcoin businesses are new and still
offer no insurance. In general, Bitcoin is still maturing.

13.  Much of the trust in Bitcoin comes from the fact that it requires no trust
at all.
 Bitcoin is fully open-source and decentralized. This means that anyone
has access to the entire source code at any time. Any developer in the
world can verify exactly how Bitcoin works.
 All transactions and bitcoins issued can be transparently consulted in
real-time by anyone.
 All payments can be made without reliance on a third party and the
whole system is protected by heavily peer-reviewed cryptographic
algorithms like those used for online banking.
 No organization or individual can control Bitcoin, and the network
remains secure even if not all of its users can be trusted.
 Why else would many major companies trust bitcoin??

14.  We have an interface system for electronic transactions without
relying on trust.
 Bitcoin is the solution to the hassle we face for electronic
transactions over a small or large distance for any amount.
 Use of Bitcoin will make mobile payments easy, security and
control over one’s money, works everywhere-anytime, fast
international payments, control own fees for transactions and
protect one’s identity.
 Hence, Bitcoin is the Money of the Future and even has potential to
replace fiat money with it’s efficiency, security, confidentiality and
timely.