This document provides an introduction to Bitcoin, including what it is, how it works, who uses it, advantages and disadvantages, and how merchants can accept Bitcoin payments using Magento. Bitcoin is a digital currency that allows for peer-to-peer transactions without an intermediary. It uses blockchain technology and miners to validate transactions. While it offers advantages like low fees and accessibility globally, it also faces challenges from price volatility and security of funds. The document outlines plugins and payment providers that can help merchants integrate Bitcoin payments into their Magento stores.

1. Introduction to Bitcoin
Magento North East
September 2016
@RichardCarter

2. What is Bitcoin?

3. 1. A crypto-currency
Rather than “real” money,
it’s “virtual” money you store
digitally

4. US Treasury calls Bitcoin
Decentralised virtual currency

5. 2. Distributed currency
Transactions are between
users: no central
intermediary

6. 3. Peer to peer currency
Public record: a distributed
ledger called the blockchain is
used to record transactions

7. 4. Secured by “miners”
Transactions pass through
“miners” who validate
transaction
Paid in newly “minted” Bitcoins

8. Image: bitcoin.org

9. Image: weusecoin.com

10. Similar payment systems

11. Plenty of alternatives
DogeCoin, Ripple, Litecoin,
Mastercoin…

12. …but Bitcoin is probably best
known and most popular

13. Who uses Bitcoin?

14. Over 100,000 merchants in
Feb 2015 (and this has
grown)
http://www.ibtimes.co.uk/bitcoin-now-accepted-by-100000-merchants-worldwide-
1486613

15. Some really big companies!

16. MediaWiki
Greenpeace
Microsoft
PayPal
Expedia

17. Advantages of Bitcoin

18. Fast transactions
No wait for your provider*
*But there are some issues these days:
https://medium.com/@octskyward/the-resolution-of-the-
bitcoin-experiment-dabb30201f7

19. Free transactions

20. Very low fees
To convert to “flat” currency
such as GBP, USD, EUR

21. Image: weusecoins.com

22. Convenient for customers

23. Reach a wider market
Bitcoin is a truly global
currency

24. No chargebacks
Transactions are not
reversible (!)*
Or are they? See https://medium.com/@octskyward/the-
resolution-of-the-bitcoin-experiment-dabb30201f7

25. Disadvantages of Bitcoin

26. Exchange rate
Fluctuates a bit…
..although so does GBP ;)

27. Image: xe.com

28. Refunds
A bit trickier to do in Bitcoin.
Most merchants refund in
store credit

29. Stolen currency?
Transactions are irreversible
…basically: store a safe,
offline copy of your wallet

30. How to steal a Bitcoin*
*but, don’t

31. 1. Copy user’s private keys
This effectively gives you
the money

32. …but that is traceable in
Bitcoin’s blockchain (the
public ledger of transactions)

33. 2. Launder your money
Using “mixers”/“tumblers” –
transfer it to other accounts
in varying amounts to cover
your tracks

34. …these move the money to a
“clean” address in the
blockchain.

35. 3. Convert it to flat currency
…is where it gets trickier, as
large withdrawals to flat
currency could identify you

36. …especially with large
amounts. Best to trickle the
stolen Bitcoin out slowly

37. Bitcoin for Magento merchants

38. 1. Bitcoin payment provider
As a merchant, you’ll need a
Bitcoin payment provider
such as BitPay or Coinbase

39. Providers should remove
some of the headaches
for you!

40. Ask your payment provider
1. Can I get a unique Bitcoin address for each
transaction?
2. How is the exchange rate calculated?
3. How fast are payments approved?
4. What is my exchange rate risk?
5. How do I receive the funds?
6. Are there any fees involved?
7. How can I see a listing of my sales?
Source: weusecoins.com

41. 2. Magento Plugins!

42. Small selection depending on
your provider

43. Small selection depending on
your provider

44. github.com/coinbase/coinbase-
magento
bitpay.com/bitcoin-for-ecommerce

45. 3. Profit!

46. Further reading on Bitcoin
bitcoin.org
weusecoins.com (merchants)

47. Questions?
@PeacockCarter
hello@peacockcarter.com