This document provides an overview of Bitcoin including how it works, its advantages, and disadvantages compared to conventional currencies. It explains that Bitcoin uses peer-to-peer technology without a central authority, has a maximum limit of 21 million, and transactions are recorded on a public blockchain. Advantages include limited supply, lower transaction costs, and lack of government control, while disadvantages are price volatility, potential for illegal use, and risk of loss if digital keys are not kept securely.

1. N a t i o n a l M i n i n g U n ive r s i t y
Bitcoin.
General information
Bulgakov Dmitr y, 2013

2. Content
1. Bitcoin Versus Conventional Currencies
2. How Bitcoin works
3. Bitcoin pros and cons

3. Bitcoin Versus Conventional Currencies
Bitcoin uses P2P technology without a central authority

4. Bitcoin Versus Conventional Currencies
Bitcoin is primarily digital

5. Bitcoin Versus Conventional Currencies
Bitcoin has a maximum 21 million limit
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6. Bitcoin Versus Conventional Currencies
Bitcoin transactions have limitations

7. Bitcoin Versus Conventional Currencies
Bitcoin balances are not insured

8. How Bitcoin works
Bitcoin uses asymmetric encryption method
key pair
W hat is encr ypted with the one key → сan be decr ypted with the other
public
private
сan be decr ypted with the other ← W hat is encr ypted with the one key

9. How Bitcoin works
Bitcoin can be acquired through a number of ways

10. How Bitcoin works
All Bitcoin transactions are included in a block chain

11. Bitcoin pros and cons
Bitcoin has a number of advantages:
 Bitcoin is the first cryptocurrency to capture the public imagination
 Total issuance is limited to 21 million, so it is unlikely to be devalued
 As a decentralized currency, Bitcoin is free from government interference and
manipulation.
 Transaction costs are much lower than with conventional currencies.

12. Bitcoin pros and cons
Bitcoin's disadvantages include:
 The price of a Bitcoin has been increasingly volatile, making it difficult to assess its
real value and increasing the risk of losses for investors in the cryptocurrency.
 The relative anonymity of Bitcoin may encourage its use for illegal and illicit
activities such as tax evasion, weapons procurement, gambling and circumvention of
currency controls.
 The fact that bitcoins exist primarily in digital form renders them vulnerable to loss.

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