OVERVIEW OF BITCOIN AND CRYPTOCURRENCIES.

1. CRYPTOCURRIENCIES
K.PRANEETH
10FH1A0532

2. WHAT IS
CRYPTOCURRENCY??
 It is the medium of exchange for goods
and services on internet.
 Unlike the our hard cash it is impossible to
touch and feel this.

3. THEN WHAT’S DIGITAL
CURRENCY??
Ven currency
Centralised systems
Crypto-currency
Decentralised systems
•E-gold
•digi-cash
Examples Examples
•Bitcoin
•Peercoin

4. Birth of Cryptocurrency
 Invented in 2009 by Japanese software
developer Satoshi Nakamoto (on hypothesis)
on the name ‘BITCOIN.’

5. What is it? What happened?
Bitcoin
What is Bitcoin?

6. What is Bitcoin?
 First and populous of players.
 Purely Electronic money, follows peer-to-
peer electronic cash transfers mechanism
between two parties .
 Relies on network of computers that use
Bitcoin protocol which is confidential till
now.

7. Operations with Bitcoin
 Process of earning Bitcoins is called
mining.
 Users/Clients of Bitcoins are termed as
miners.
 Similar to CASA accounts ,Bitcoin uses
‘virtual wallet’ system to make
transactions.
 Miners can buy/sell Bitcoins through online
exchanges.

8. Value of Bitcoin??
 The value of Cryptocurriencies are
always based on speculation.
 So is the price of Bitcoin is
volatile.
 Depends on the users confidence
 The value of Bitcoin against rupee.
1 =Rs39,005/-(as on 12/3/2014)

9. How secure ??
 Uses a sophisticated ‘Bitcoin protocol’
 Transactions made by sending Bitcoins
from one wallet to a unique key
associated with another wallet in a
‘cryptographic’ process verified by
computers.
 Its best security systems which are
expected to be the better than Google.

10. Pros
 Widely accepted online by more than 1000
merchants
 Eco friendly
 No taxes for out bound transactions too.
 Its decentralized system.
 Secure system

11. Cons
 Very volatile !
 There is always a chance to get hacked.
 Not subjected to any of the jurisdiction.

12. Cons(cont.)
 Its decentralized system attracts
smugglers and money laundering.
 It may turn as another international ponzi
scheme, as its operators are not properly
identified till date.
 Adds woes to developing countries by
increasing CAD.

13. What is its future??
Recent updates from Mt Gox about
“unusal activity” has decreased the
miners’ confidence.
If it goes well,Bitcoin will be in a
eminent position in market structure
after Dollar and Euro.

14. What is its future??(cont)
 Up coming countries like Cyprus are using
Bitcoin to control their inflation.
 Bitcoin seems to be emerging victorious
especially in Asia.

15. On an ending note..
 Major growth in ‘Cryptocurrencies’ is not
good for standard fiscal bodies as they
may lead to another financial crisis.
 The policy makers should come up with
new flexible policies to minimize the
‘Cryptocurrencies’ usage.

16. When’s India’s turn??
 Yes! Recently a digital currency has been
announced by the name ‘laxmicoin’

17. Appreciate your
time.
Thank you…

18. References
 http://en.wikipedia.org/wiki/crypto_curren
cy
 https://bitcoin.org/en/how -it-works

19. Queries ?