-by Rajani Bansari

Outline
• Introduction
• History
• Transactions
• Legal issues and status
• Conclusion

• Bitcoin is an experimental, decentralized digital
currency that enables instant payments to
anyone, anywhere in the world.
• Bitcoins are sent easily through the Internet,
without needing to trust any third party.
• It is type of crypto currency.

History
• First mentioned in a 2008 paper published
under the pseudonym “Satoshi Nakamoto",
Bitcoin became operational in early 2009 with
the release of the first open source client or
wallet, Bitcoin-Qt, and the issuance of the first
bitcoins.

Transaction
• Software
• Wallets
• Block chain
• Buying and selling bitcoins

Software
• Bitcoin wallet software, sometimes called a
Bitcoin client, allows a user to transact
bitcoins.
• The most basic a wallet program generates
and stores private keys, and communicates
with peers on the Bitcoin network.

Wallets
• A collection of keys
is called a wallet.
Note that
sometimes this
term is used to
mean the software
itself in the sense
of digital wallet.

Block chain
• Bitcoin is a public database and sequential
record of all transactions, known as the block
chain, that records current bitcoin ownership
as well as at all points in the past.
• By keeping a record of all transactions, the
block chain prevents double-spending.
• Those who maintain the block chain are called
miners and are rewarded with newly created
bitcoins as well as transaction fees.

Buying and selling bitcoin
• The fastest way to obtain bitcoins is to
purchase them in person for cash. Participants
in online exchanges offer bitcoin buy and sell
bids.
• Bitcoin ATMs

Legal issues and status
• Online gun dealers
• Online purchase of drugs
• one half of all transactions made using Bitcoin
were bets placed at a single online gaming
website.
Black market

• normal earned income rules apply to
Bitcoin.
Criminal activity
Legal status

Advantages
• Mobile payments made easy
• Security and control over your money
• Works anywhere, anytime
• Fast international payments
• Protect your identity

• The essence of Bitcoin security is protection
of private keys.