Bitcoin - Digital curreny
Content: What is Bitcoin?
How Bitcoin transaction works?
Use of Bitcoins in real world
Its characteristics & valuation
Overall acceptance scenario
Bitcoin ATM
5. Its characteristics
Open-source software program
“crypto-currency”
“Mining”
Portable
Authenticity Verification
Finite (21 million bitcoins and the last expected to be
“mined” in 2140)
2/3/2014
SVKM’s NMIMS SPP SPTM
5
6. Currency Valuation
• Supply and demand
• 1 BTC = $847.24 (As of Jan.31 . 2014)
st
2/3/2014
SVKM’s NMIMS SPP SPTM
6
7. Advantages & Disadvantages
- Decentralized
- Payment freedom
- Very low fees
- Difficult to Counterfeit
- online security
- Volatile
- a lack of regulation
2/3/2014
SVKM’s NMIMS SPP SPTM
7
8. Use of Bitcoins in real world
• 20 business (such as apartments, law firms, and popular online
services such as WordPress)
• August 2013, US$ 1.5 billion
• Bitcoin gambling sites
Physical
goods
• Bitcoinshop.us
Travel
• Bitcoin.Travel
Online
auctions
• Silkroadvb5piz
3r.onion
Greeting
cards
• Amazon.com
gift cards
• BitcoinStore.c
om
Memory
Dealers
2/3/2014
SVKM’s NMIMS SPP SPTM
8
9. Example of website where bitcoin is used
2/3/2014
SVKM’s NMIMS SPP SPTM
9
11. Use of Bitcoins in real world
• US • “surrogate currency”
• seized bitcoins from
purchasing a controlled
substance
Money
laundering
2/3/2014
SVKM’s NMIMS SPP SPTM
11
12. Bitcoin ATM
• World’s 1st Bitcoin ATM- Vancouver,
Canada at Wave coffee house
• Maker - Robocoin
• It’s a Cash-Only Machine
• Works on - Biometric Identification
System
• It can dispense hard cash in exchange for
Bitcoins
• Transaction recorded in – Public Ledger
• Create on the spot new a/c – 4min (Scan
your palm, Government identification card
& Face recognition)
2/3/2014
SVKM’s NMIMS SPP SPTM
12
RBI has listed loss due to hacking and malware, loss of password and the absence of an established framework for recourse to customer problems and disputes. But the central bank's main concern appears to be that virtual currencies are being used for illegal activities.