Bitcoin was the first cryptocurrency created in 2008 by Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, allowing anonymous transactions at low cost. New bitcoins enter the market only through mining, where users solve mathematical problems. While the legal status of bitcoin varies by country, its popularity has driven demand and market price despite criticism it is a speculative bubble.

1. Cryptocurrency
Bitcoin

2. Presentation Objectives
• What is cryptocurrency?
• What is bitcoin and how it works?
• History of bitcoin
• Characteristics of Bitcoin
• How Bitcoin is issued (Bitcoin Mining)
• Demand and Supply of bitcoin and market price
• Is bitcoin is a bubble?

3. Cryptocurrency
• Crypto mean something highly encrypted.
• Cryptography is an art of encrypting software, web applications, and networks.
• The objective of Cryptography is to secure a system (Prevent hackers)
• We can say that cryptocurrency mean secure currency which cannot be
compromised
• There are many cryptocurrencies such as Bitcoin, Litecoin, Zcash , Dash , Ripple
etc

4. Introduction to Bitcoin
• Bitcoin is one of the famous cryptocurrency
• Bitcoin was found by Satoshi Nakamoto in 2008
• It is decentralized currency that’s why bitcoin price fluctuate.
• Bitcoin is not something physical.
• It is easy to transport anywhere with low cost.
• No intermediary requires its peer to peer network.

5. Milestones of Bitcoin
• 2008: Founded by Satoshi Nakamoto (No body knows him now).
• 2009: The Bitcoin software is made available to the public for the first time and mining (The
only way through bitcoin is generated).
• 2010: Bitcoin traded for the first time (When a person purchased a pizza for 10,000 bitcoin
worth $100 million today).
• 2011: Rival came (Litecoin, Namecoin).
• 2013: Bitcoin price plummet from $1000 to $300.
• 2016: Ethereum and ICOs stole bitcoin thunder this year.
• 2018: One Bitcoin is worth Rs. 1671233.

6. Why Bitcoin is famous?
• It was the only cryptocurrency
• It is decentralized currency (Regulate by users; not any bank)
• It allows user to do transactions anonymously
• It is tax free (No matter how many bitcoins you have).
• Transaction charges is very low
• Transfer fund easily at very low cost; Worldwide

7. Transaction using Bitcoin
• Every transaction of bitcoin is stored in ledger called Blockchain.
• Every bitcoin user has a copy of this ledger.
• Every transaction on Blockchain is publically visible but parties remain
private.
• When a transaction happens it is updated in the ledgers (Blockchain) of all
bitcoin users.

8. Legal status of Bitcoin
• Most countries around the world set laws regarding bitcoin but not accepting
bitcoin as actual currency.
• The first country to completely accept bitcoin was Japan.
• India seems to be next and creating laws regarding bitcoin.
• Pakistan, Iceland, Bolivia, Ecuador, Bangladesh, Kyrgyzstan and Vietnam
have totally banned bitcoin.

9. Supply of Bitcoin (Bitcoin mining)
• Normally, supplier of money use to be bank.
• Bitcoin is decentralized currency.
• The only supplier is Bitcoin miner.
• Miner solve mathematical problem and bitcoin is issued as reward.
• Bitcoin is not dependent on foreign reserve or asset but mathematical
problems

10. Demand of Bitcoin (Faith on Bitcoin)
• Bitcoin is a fiat currency.
• The value of fiat currency is based on trust .
• People think that Bitcoin will be accepted as medium of exchange.
• The expectations about trust and acceptance are particularly relevant for
Bitcoin.
• Moreover bitcoin characteristic such as anonymity also contributes to
demand.

11. Market price of Bitcoin
• Market price of bitcoin is determined by supply and demand of bitcoin.
• Initially, because of low demand market price of bitcoin was low.
• Today Bitcoin is very famous and demand is very high.
• To keep market price high, supply of Bitcoin is very low.
• Today market price of bitcoin is Rs. 1671233 (08/01/2018)

12. Bitcoin is a bubble?
• About every economist believes that it’s a bubble.
• Due to the lack of Bitcoin regulation investing in Bitcoin is a risky business
and no one knows if or when Bitcoin will crash.
• Bitcoin is fad and soon people will faded.
• People love bitcoin because they don’t know what it is.

13. Economist Vs Investors

14. Summary
• Bitcoin was the first cryptocurrency found by Satoshi Nakamoto in 2008.
• There are other cryptocurrency but bitcoin is famous among them because
of its features.
• Bitcoin is accepted in few countries only.
• Bitcoin comes into market through bitcoin miners only
• The market price of bitcoin is determined by its demand and supply

15. Thank you!
Any Questions?