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
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.