What is Crypto Currency?
Digital currency that uses
cryptography for security.
Cryptocurrencies are generally
anonymous and not issued by any
• In 1998, Wei Dai Published a Description of “B-Money”, an
anonymous, distributed electronica cash system.
• Nick Szabo created "bit gold" Like bit-coin and other crypto
• The first crypto-currency to capture the public imagination
was Bit-coin, which was launched in 2009 by an individual or
group known under the pseudonym Satoshi Nakamoto.
Ideas of Crypto Currency
• Bitcoin may be the TCP / IP of money.
Paul Bauchheit – Creator of Gmail
• I do think Bitcoin is the first[encrypted money] that has the potential to do
something like change the world.
Peter Thiel – Co – Founder of PayPal
• Bitcoin will do to banks what email did to the postal industry
Rick Falkvinge – Founder of the Swedish Pirate Party
• Bitcoin actually has the balance and incentives right, and that is why it is
starting to take off
Julian Assange - Founder of Wikileaks
• Simply Crypto Currency means digital currency
• A medium of exchange like normal currencies
• Designed for the purpose of exchanging digital information
• Exchanging process made possible by certain principles of
• Used to secure the transactions
• Control the creation of new coins
Why we use Crypto Currencies?
• Specially designed to take advantage of the architecture of the
• Transactions are checked, or “confirmed” by the computers of
the users on the currency's network
• Computers that verify the transactions receive a small amount
of currency as a reward
What is the purpose of
• A crypto-currency is a medium of exchange like normal
currencies such as USD, but designed for the purpose of
exchanging digital information through a process made
possible by certain principles of cryptography.
• Cryptography is used to secure the transactions and to
control the creation of new coins.
• Process of adding transaction records to public ledger of past
transactions or block chain
• Ledger of past transactions – block chain
• The block chain serves to confirm transactions to the rest of the
network as having take place
• Use the block chain to distinguish legitimate transactions from
attempts to re – spend coins that have already been spent
Characteristics of Crypto Currencies
• Use a number of different algorithms
• Traded in different ways
• Main characteristics that should consider by the customer are;
• Market capitalization and Daily trading volume
• Verification Method
• Retailer acceptance
• PAotential loss/theft of private keys
• Not truly anonymous
• Double spending and the 51% attack
Benefits of Crypto Currency
• Mutual Exposure
• International use
• Customer Anonymity
• No Surprise Fees or Waiting Periods
• Improving Reputation
Disadvantages of Crypto
• Lack of Awareness and understanding
• Risk of Volatility
• Still Developing
Differences between Crypto
Currency and PayPal
Crypto Currency PayPal
Decentralized Not Decentralized
Floated and not tied to the dollar Pegged to the dollar
Behavior is backed military grade
cryptography, not by contracts
Behavior is backed by a
contractual relationship with a
• As you can see, any crypto-currency until now is not perfect.
• It have many advantages; however, it also has its disadvantages.
• This is mostly due to the fact that it is still a relatively young and new currency.
• People are just beginning to become more aware of it.
• In order for Crypto-currency to succeed, more people need to understand what it is.
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