Bitcoin- Profile and Analysis Presentation

1. Group Members
Fayoke Banjo (Team Lead)
Andrine Jackson-Scott
Claudeen Grenyion
Ornela Keruti
Chris McFarlane

2. AGENDA
INTRODUCTION
CHARACTRISTICS
HOW IS BITCOIN AN INDUSTRY TREND?
PESTLE ANALYSIS
BITCOIN ECOSYSTEM AND DESIGN
BITCOIN: ITS PLACE IN E-COMMERCE
BITCOIN MERCHANTS
BITCOIN CHALLENGES ADDRESSED AND ADDRESSING
BITCOIN OPPORTUNITIES
COURSE CONCEPTS INCOPERATED
CONCLUSION

3. Introduction
• Released in 2009 by a programmer using the Pseudonym Satoshi Nakamoto
• It is a protocol that is electronically created and stored
• Uses cryptography for security, which is extremely difficult to counterfeit
• Facilitates electronic payments based on mathematical proof and validation
• Bitcoins are mined using computer power in a distributed network
https://www.youtube.com/watch?v=Um63OQz3bjo

4. Bitcoin Characteristics
Decentralized
Open source
Peer to peer
Easy to use
Unregulated (that is changing slowly)
Anonymous yet Transparent
Fast but irreversible transfers

5. Bitcoin: An Industry Trend- How?
• The first Crypto-currencies to gain ground in the real economy. Other Cryptocurrencies are
built from the same open-source code
• Disruptive technology in the financial industry
• Offers a 21st century alternative to brick and mortar banking
• E-commerce is becoming common place which opens further opportunities for the continued
use of the currency
• Bitcoin is becoming a mainstream trend as the most popular virtual currency with the highest
value in circulation compared to other cryptocurrencies.

6. Bitcoin- An industry Trend- How? Cont.
• Millennials and high income consumers/believers are earlier adopters
“13% of millennials and 19% of high income respondents use digital currencies to
make payments on a weekly basis” (Accenture, 2014)
• Usage is estimated to increase in these two groups to 26% and 32%
respectively by 2020
• Decline in payments using traditional payment instruments
• This momentum is expected to continue in the future

7. POLITICAL ANALYSIS
• Not controlled by any government body
• China, Russia?- Banks barred from accepting bitcoin
• United States, Canada & EU considered Pro-bitcoin
• Allowed between private entities.

8. ECONOMICAL ANALYSIS
• Market capitalization exceeds $6 billion- 0.008% of global GDP of $78 trillion
• 21 million bitcoins in existence today and 15,359,800 in circulation
• Too small to affect Federal government ability to conduct monetary policy
• Over 88,000 merchants currently use Bitcoin

9. SOCIAL-CULTURAL
• Driving force- Anonymity, Reach and Savings
• Low-level awareness & Usage
• More merchant adopting the payment technology can increase
adoption among consumers

10. TECHNOLOGICAL
• Bitcoin public ledger (Blockchain) is being leveraged

11. Environmental Factors
• As demand grows, More computational power required
• Miners to find alternative source of electricity- cheap coal in old plants
• Carbon footprint- associated with 1.5 tons of CO2 emission/ Bitcoin

12. LEGAL FACTORS
• Decentralized nature of the coin hinders any form of regulatory effort
THIS IS CHANGING:
• Countries such as Canada, U.S.A, E.U are putting regulations in place
• E.g. Obama Administration partnering with private companies (Blockchain
alliance)

13. Bitcoin Ecosystem

14. Bitcoin Design
• Block chain technology
• Dedicated computing power – hash rate
• Shared public ledger
• 256 bit encryption protocol
• Files on a computer – wallet
• Enforced with cryptography

15. Place within ecommerce framework
• Revolutionize ecommerce payments by offering a peer-to peer digital
cash system
• Disruptive to traditional payment systems
• Most beneficial to merchants
• Cross-border payments
• Bureaucratic process involved in initiating a payment gateway for e-commerce
sites and incorporating the banks protocols

16. Bitcoin Merchants
• Overstock
• Virgin Galactic
• Dish Network
• Dell
• Microsoft

17. Bitcoin challenges

18. Bitcoin challenges (cont's)
• Confirmation Times
• Blockchain Scalability

19. Bitcoin challenges
(cont.)
• Double Spending
• Security

20. Bitcoin Opportunities
• Transfer of property
• Ex. Colored Coin designing small portions of bitcoin to denote physical
property

21. Bitcoin Opportunity Cont.
• Identity Management
• Social security number, tax identification number and even driver’s license
• Access to wider and untapped Market

22. Course Concept incorporated
MOBILE WEBSITE- Xapo, BitGo, Coinbase
MOBILE WEB APP: Windows, Mac and Linx (BitGo, Bitcoin Core)
NATIVE APP: IOS, Android, Windows Phone, Blackberry (Airbitz, Bitcoin Wallet)
HARDWARE: Ledger Nano, KeepKey, Trezor
• Hardware wallet that makes bitcoin security simple
• Can keep the user private key safe
• Validate Transactions

23. Conclusion
• Crypto-currency landscape is still evolving and despite its issues and
challenges
• The bitcoin technology is in the stage as the internet in the 1990s
• Bitcoin might not be the major Crypto-currency of the future due to its
challenges and drawbacks
• The bitcoin open technology platform is definitely leading the way towards a
more seamless digital global economy