Bitcoin advantages/disadvantages , characterstics, how it work, challenges, opportunities, wallets, transactions

2. AGENDA
Introduction
Bitcoin Characteristics
Bitcoin Design
Bitcoin: An Industry Trend- How?
Technological Analysis
Bitcoin Ecosystem
Bitcoin Merchants
How Bitcoin Work ?
Bitcoin challenges
Bitcoin Opportunities
Mining
How To Store Bitcoin ?
Types Of Wallet
Transaction
How To Keep Bitcoin Secure ?
TOP 5 COUNTRIES FOR BITCOIN DOWNLOADS.
APPLICATIONS OF BITCOIN
ADVANTAGES & DISADVANTAGES OF BITCOIN.
Conclusion

3. Introduction
o Released in 2009 by a programmer using the Pseudonym Satoshi
Nakamoto
o It is a protocol that is electronically created and stored
o Uses cryptography for security, which is extremely difficult to counterfeit
o Facilitates electronic payments based on mathematical proof and validation
o Bitcoins are mined using computer power in a distributed network
o 1 BTC = 333.71$ is the current value. i.e Rs. 21,481.63

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

6. 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.

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

8. Bitcoin Ecosystem

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

10. HOW BITCOIN WORKS?
Create a Bitcoin account using open source software.
Software outputs a private key and a public key.
Private key must be kept secret.
Private key - transferring money from account.
If private key is lost the funds are irrevocably lost .
Public key -transferring money to our account.

11. HOW BITCOIN WORKS?(CONT..)
• To transfer funds to your account, other people
will enter in their owns account's private key and
your public key.
• Block chain - a global, distributed cartographic
ledger of transactions
• i.e. transaction details are recorded in the block
chain

12. Bitcoin challenges

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

14. Mining
 New bitcoins are generated by a competitive and decentralized process called "mining”.
 Mining is the process of adding transaction records to Bitcoin's public ledger of past
transactions.
 Mining is intentionally designed to be resource-intensive.
 The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-
resistant consensus.
 Mining is also the mechanism used to introduce Bitcoins into the system.
 Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

15. HOW TO STORE BITCOIN ?
 Bitcoins are stored in what are called wallets
 Wallet is a randomly generated string of numbers and consists of two
parts : Public key and private key
 Public key – For transferring money to your account
eg : 14GabW85FUMQy62CMWLCToQLo81w7iXL2x
 Private key – Only for the wallet Owner. If anyone gets aholdyour
private key, they will have access to all yourbitcoins
(ALWAYS KEEPYOUR PRIVATE KEYPRIVATE!!!)

16. TYPES OF WALLET
 Online wallet services
* All that is required here is to create an account and
remember the password
* Most popular services are Blockchain.info and Coinbase
 Local or Offline wallets
* It is an application that can be downloaded in your
computer
* Your private key will be stored locally on the hard drive
 Paper wallets
* Here the public key and the private key which are generated
offline are printed in a physical piece of paper and then stored
in a safe location

17. TRANSACTION
 Sending or receiving bitcoins are as simple as
scanning a QR code with your smartphone.
 Online services such as Blockchain.com and
Coinbase help us for this.
 Both have security features that require you to use a
PIN for transaction.
 Simply scan the receivers QR , enter the number of
coins to send, and you are done.
(QR code will be generated when we enter the public
key)

18. HOW TO KEEP BITCOIN
SECURE?
 Use strong passwords.
 Always encrypt your wallet.
 Keep your private key secret.
 Always run antivirus software.

19. TOP 5 COUNTRIES FOR BITCOIN
DOWNLOADS
 US -- 12,07,661
 CHINA -- 5,05,904
 GERMANY -- 2,70,043
 UK -- 2,36,523
 RUSSIA -- 2,26,680
 Note :- India ranks 16th -- 35,648

20. APPLICATIONS OF BITCOIN
 You can save them .
 You can spend them just like cash .
 You can day trade with them .
 You can invest in various BTC based companies .

21. ADVANTAGES OF BITCOIN
 Payment freedom.
 Very low fees.
 Few risk for merchants.
 Security and control.
 Transparent and neutral.

22. DISADVANTAGES OF BITCOIN
 Lack of awareness.
 No Physical Form.
 Bitcoins are not widely accepted.
 Wallets can be lost.
 No valuation guarantee.

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 toits
challenges and drawbacks
• The bitcoin open technology platform is definitely leading the way towards a
more seamless digital global economy

24. Thank You
Presented By :- Lakshya Sharma
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