What will you Learn
Blockchain, Cryptocurrency, Bitcoin and History along with what
happens till the date.
How Bitcoin works, Differences between bitcoin address and
mail address, Transaction of Bitcoin.
Behind Mechanism of Bitcoin
Advantages and Disadvantages of Bitcoin, Bitcoin as Industry,
Making Purchases and Investing in Bitcoins
How to and Legal works in Australia
Economy, Investing in Bitcoin, Financial reaction about Bitcoin
along with Securities of Bitcoin
Financial Markets and Securities
• It is the world’s largest leading software platform for
• It is first created by an anonymous scientist Satoshi
Nakamoto in 2008.
• It was designed to implement the process of bitcoin
and other cryptocurrencies.
Money, Cryptocurrency and Bitcoin
Money is a measure of value and medium of
exchange and Regulates by Government
Bitcoins is the lead in the pack of
Cryptocurrency is a virtual currency carried out
digitally using cryptographical functions.
Cryptocurrency is independent of
Government Authorities / Financial
What is Bitcoin?
First innovative creation of blockchain in 2009.
Works like a distributed peer-to-peer
network where NO PHYSICAL BITCOINS.
Relies in a Blockchain where, no specific laws for
protection of money.
Has NO currency and same all over the
1. Since past six
months in 2017,
the price of bitcoin
has risen up
2. Experts targeting
up to $10,000 or
even more of
500000% of bitcoin
History of Bitcoins
2016: Ethereum and ICOs
2017: Bitcoin reaches
$10,000 and continues to
2010 : Bitcoin is valued for
the first time.
2011: Rival Cryptocurrencies
2013 : Bitcoin Price
2014 : Scams and Theft
1. Invented by Satoshi
Bitcoin in 2020
Continuous rise and development of bitcoins.
Attracting many businesses
Online stores accepting bitcoins for the purchase.
For example, Tech giant Microsoft accepts bitcoin
payment methods for its products like games,
apps and movies.
CheapAir, an American flight booking service
allows bitcoin payment system.
• Similar to bitcoin,
currency used for
• It covers larger
amount of money
• Exhibits faster
• Created by former
Charles Lee in
• One of the famous
wallet broker in
USA , Mr Charles
• Left Google and
• A cryptocurrency
that has its block
time faster than
bitcoin i.e. 14 to
releases its block
• There are
s and Today
there are 1,920
to be precise. at
least as of
I. Collins, J. (2016). A bit about bitcoin. Journal of
II. Grinberg, R., 2012. Bitcoin: An innovative alternative
digital currency. Hastings Sci. & Tech. LJ, 4, p.159.
III. Lo, S. and Wang, J.C., 2014. Bitcoin as money?
IV. Nakamoto S. (2008) A Peer-to-
Peer electronic Cash System, https :// bitcoin.org/bitcoin.p
V. ASIC (2018a), ‘Cryptocurrencies’, Moneysmart site, 24 Oc
VI. WJ Luther - Journal of Institutional Economics, 2019 -
How Does Bitcoin Work?
Bitcoin is the name of P2PProtocol.
It is known as opensource project.
From a users perspective, Bitcoin is
nothing more than a mobile app or
computer program that provides a personal
bitcoin wallet and enables a user to send
and receive bitcoins.
The transaction is
valid when the usage
of miner agrees the
longest record of the
why every block
related with hash that
rely on the hash of
ReferencesI. Abhishek Kurve, 2017. 4 Different Types of Bitcoin Wallets You
can Use. [Online]
Available at: https://beebom.com/types-of-bitcoin-wallets/
[Accessed 19 February 2017].
II. Bitcoin.org, n.d. How it works?. [Online]
Available at: https://bitcoin.org/en/how-it-works
III. Wiki, 2018. Bitcoin. [Online]
Available at: https://en.bitcoin.it/wiki/Bitcoin
[Accessed 19 September 2018].
IV. MoneyMorning, n.d. MONEYMORNING. [Online]
Available at: https://www.moneymorning.com.au/investment-
V. Paul Gil, 2019. Lifewire. [Online]
Available at: https://www.lifewire.com/what-are-bitcoins-
[Accessed 14 November 2019].
Bitcoin and Bitcoin Cash
1.Peer-to-peer electronic cash
2.Represented as BCH
3.Virtual (Digital) currency
4.Transformation that is changing
the way individuals think about
and utilize money.
Introduction to Bitcoin Cash
• In search of better alternative, numerous
clients, organizations and even investors
• to overcome this problem, bitcoin cash
came into existence raising the block size
limit to 8MB as a component of a huge on-
chain scaling approach.
• Bitcoin's block size stays at one megabyte
i.e. 250,000 transactions a day, Bitcoin
Cash has expanded the breaking point to
Problem with Bitcoin
• The 1 mb block size limit was
causing problem in transaction
• Technically simple to raise the
block size but no agreement in the
• hit the ‘invisible wall’ in 2017
• Increased fee, untrustworthy,
delay in confirmation of
• Market coverage decreased 95%
to as low as 40%.
Advantages and Disadvantages
Security and Control
Generally very low
Fewer Risks for
No Risk of “Charge-
I. Bitcoin.com, 2017. What is Bitcoin? [online] Available
[accessed 4 January 2018]
II. BitcoinCash, 2018. The best money in the world. [online]
Available at:<https://www.Bitcoincash.org/> [accessed 2
III. Grinberg, R., 2012. Bitcoin: An innovative alternative
digital currency. Hastings Sci. & Tech. LJ, 4, p.159.
Is Bitcoin legal?
One of the first countries to join the bitcoin hype
AUSTRAC: regulator of cryptocurrency exchange
Labelled bitcoin transaction as legal since 2013 by
New Laws to control cryptocurrency adopt in 2018
Is under review by
Australian Securities and
Not Recognizes as legal
tender and Use is legal under
compliance with obligations
under Australian Law
Bitcoin; an asset, not a
Illegal Online Purchases
Bitcoin – Non-cash Payment
Can be easily paid
through bitcoin wallet
As easy as cash for
Can be accessed within
minutes through internet
Different from other non-
cash payments like
frequent flayer points
Bitcoin – As Currency
description but not that
currency nor e-currency
May be new term:
Xbox Games from Microsoft
Movies and Apps in Microsoft
Bitcoin Real state
What do you say?
ReferencesI. Adroit Lawyers, 2014. BITCOIN AS CURRENCY UNDER
AUSTRALIAN LAW. [Online]
Available at: http://www.adroitlawyers.com.au/bitcoin-currency-
[Accessed 29 July 2014].
II. Anon., n.d. Bitcoin Australia. [Online]
Available at: https://bitcoin.com.au/
III. Buyabitcoin.com.au, 2017. 3 Interesting Things You can Buy
with Bitcoin. [Online]
Available at: https://buyabitcoin.com.au/blog/3-interesting-things-
[Accessed 26 September 2017].
IV. Owen Burek, 2018. How to Buy Boitcoin in 7 steps. [Online]
Available at: https://www.savethestudent.org/make-money/how-
[Accessed 14 November 2018].
Reaction on Bitcoin
1.Different than traditional banking
2.Reaction towards Bitcoin mostly relies
on the laws and regulations towards
3.Reaction towards Bitcoin
- Suspicions of Criminal
Reaction on Bitcoin
Big 4 Banks in Australia:
1. Commonwealth Bank of Australia
(CBA): Strict against Bitcoin
2. The Australia and New Zealand
Banking Group (ANZ): mixed
3. National Australia Bank (NAB): In
favor and promoting
4. Westpac: Follows strict rules
01 Ignoring middleman during financial transaction
02 Differentiating the transaction between dollar and other
03 Ignoring the barriers of entry and Hard to Regulate
04 Helps establish more international transactions
Effects on Economy and
Investing in Bitcoin - Australia
1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018
BITCOIN WALLET ADDRESS GROWTH
# of addresses on the Bitcoin network
Risks of Bitcoin
Risks linked with Technology
Threat of Cybertheft & Variability in Pricing
Fraud in Virtual Currency
Lack of Consumer Protection
ReferencesI. Deering, S. (2019) ‘Is Bitcoin illegal in Australia’, Crypto News Australia.
(Online). Available from: https://cryptonews.com.au/guides/is-bitcoin-illegal-in-
australia [Accessed on January 9, 2020]
II. Bitcoin. Bitcoin Usage Charts. (Online). Available from:
[Accessed on January 9, 2020]
III. McCann, C. (2018). 12 Graphs That Show Just How Early The
Cryptocurrency Market Is. (online) Available from:
cryptocurrency-market-is-653a4b8b2720 [Accessed on January 9, 2020]
IV. Herlean, G. (2018) ‘The Top Ten Risk Of Bitcoin Investing (And How To Avoid
Them)’ Forbes (Online). Available From:
risks-of-bitcoin-investing-and-how-to-avoid-them/#603cf2f52407 [Accessed on
January 9, 2020]
V. Matthews, K. (2018) ‘5 Ways Bitcoin Effect The Economy’, technobuffalo,
(online). Available from: https://www.technobuffalo.com/5-ways-bitcoin-affects-
the-economy [Accessed on January 9, 2020]
There are number of privac
y and security risks th
at comes along this virt
ual currency e.g risk of
Public and private keys
Bitcoin does not have any physi
cal existence that makes it
difficult to safeguard them
01 Theft From
Private keys and sensitive information
How to avoid from theft ?
Australian bitcoin holding bank
02 Theft From
Danger of hacking
Protection of coinbase accounts
Two way authentication
03 Theft from
Private keys are on risk of being stolen
Don’t share private keys
04 Theft from
Unreliable exchane or mining market
Nicehash,one of the largest crytocurrency mining
place got hacked on Dec 06,2017
How to avoid such incident / Hot wallet and cold
How to Secure
Double exchanges of blockchain and distorting the bitcoin
represent the most serious issue. A protected wallet is
expected to tackle such security issues. The security of the
electronic wallet in cell phones must be checked as cell
phones have gotten well known.
The base innovation should likewise be confirmed since
vulnerabilities vary as per the programming language and
stage utilized for the improvement of the electronic wallet
The electronic wallet must have measures for secure
rebuilding whenever encroached by an assailant, check of a
double introduced for self-insurance, and assurance of the
rest of the information for reclamation.
How to Secure
The mining process of the Bitcoin is potentially vulnerable
under attacks like 51% attacks and ‘Selfish-mining’ attacks. To
provide security against the attack on mining process, the
framework of Bitcoin protocols needs to be changed and
since the Bitcoin is indeed a decentralized cryptocurrency.
We should be careful of the bitcoin company with which we
choose to do the business.
It can be stored offline like in USB.
While transferring the fund to someone, one should confirm
the wallet address is genuine.