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Cryptocurrency
- 1. CRYPTOCURRENCY Group # 06 ANURUPABANERJEE (PGP03014) ARJUN DIXIT (PGP03015) KAUSHIK BAGCHI (PGP03029) MOHIT YADAV (PGP03033) NIVEDITA DAS (PGP03039) PRINCE SHARMA (PGP03045) SANAT KUMAR GABEL (PGP03052) YASH SHAH (PGP03063)
- 2. CONTENTS • Introduction tocryptocurrency • Its advantages, risk involved and failures • Conventional currency v Cryptocurrency • Reaction of governments • Buying of cryptocurrency- who? why? and how? • Relation with the monetary policies • Our inferences and conclusion
- 3. INTRODUCTION AND ADVANTAGES •Virtual • Alternative • Decentralized • Anonymous • International A digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets
- 4. TOP TEN CRYPTOCURRENCYIN 2016 • Bitcoin • BlackCoin • Dash • Dogecoin • Litecoin • Namecoin • Nxt • Peercoin • Primecoin • Ripple
- 5. HOW TO BUYCRYPTOCURRENCY? • Cryptocurrency exchanges (online) • Bitcoin ATMs (put money inside and load your bitcoin wallet) • Bitcoin Voucher Cards (i.e. Austrian Post office, House of Nakamoto, Azteco London) • Buy it personally from other people Where to buy cryptocurrency ? Online Exchange Person-to-person Bitcoin ATM Paypal Credit Card Cash Payment methods Bank transfer
- 6. • Purchase custommining hardware Popular Bitcoin-mining hardware brands include Butterfly Labs, Bitcoin Ultra, CoinTerra, and more
- 7. WHO BUYS CRYPTOCURRENCY •Any individual can buy cryptocurrency. • Payment service provider. • Financial institutes. • Investors. • Venture capitalist.
- 8. WHY CRYPTOCURRENCY • Transactionsare irreversible, fast and have low fees. • Universal (within the internet). • Decentralised, no trust necessary. • The supply of coins is regulated by software and the arrangements of the users of the system and cannot be manipulated by any government, bank, organization or individual.
- 9. RISK AND FAILURES •Supporting Criminal Activity • Cryptocurrencies can be used to anonymously purchase illegal goods, launder money from illegal activities and purchase illegal services. • Lack of Transparency • The anonymous nature of cryptocurrencies make transparency and accountability difficult for consumers seeking to ensure safety of their investments. • Hackers • Cryptocurrencies are target for highly sophisticated hackers who have been able to breach the advanced security system.
- 10. RISK AND FAILURES(Contd.) • Cost • Cryptocurrencies can cost consumers much more to use than credit cards or even regular cash, often due to price volatility. • Scams • Fraudsters are taking advantage of the hype surrounding virtual currencies to cheat people with fake opportunities. • Fewer Protections • If you trust someone else to hold your cryptocurrencies and something goes wrong, that company might not offer you the assistance you expect from bank or debit/credit card provider.
- 11. CRYPTOCURRENCY AND ITSMONETARY POLICIES • All cryptocurrencies have inflexible monetary policies implemented through their coding and DNA • Types of Cryptocurrencies base on their monetary policies: • Deflationary Coins • Total number of coins is fixed. e.g. Bitcoin 21m • Growth Coins • No limit on number of coins. No. of coins grow steadily with a fixed coin supply rate. e.g. Dogecoin and Reddcoin.
- 12. WHY CONVENTIONAL POLICIESWONT WORK? • Not regulated by any government or central body • No central control over economic behaviors like inflation, unemployment etc. as the conventional methods of expansionary and contractionary policies won’t work • Can be traded, mined and sold directly without the role of a regulating body • Therefore, no control of any central body
- 13. Similarity: • similar totraditional currencies. It is recognised and has a value • can be used to buy things • its value can change according to market variables Difference: • Unlike any traditional currency, bitcoin is not bound to an institution • or country • International and not subject to authorities like bank or governments • that are typically associated with other currencies COMPARISON WITH CONVENTIONAL CURRENCY
- 14. • It needsto be reasonably difficult to produce • it needs to have a limited supply . • it needs to be recognised BITCOIN: PARALLEL WITH GOLD Defining Characteristics: • Like gold, bitcoin supply is limited. • Bitcoin technology can only ever produce a certain amount of bitcoins. The more bitcoins that are produced, the harder it is to create new ones. In this way, the value of bitcoins is regulated. • Because of its parallels with gold, the production of bitcoins is known as mining.
- 15. ACCEPTANCE OF BITCOINACROSS THE WORLD
- 16. ACCEPTANCE OF BITCOININ INDIA Bitcoin is not legally accepted in India as of now due to the following reasons: • Governments are unable to track payments in bitcoins. • It is a decentralized mode of exchange. • Lack of underlying legal framework. • Vulnerability to loss • It is highly volatile.
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