1.
BITCOIN
Can it be a new emerging Financial Instrument???
By
SwaminathS
Crypto Currencies (Bit Coin) are subject to high
Price Fluctuations; please read and understand the power
point presentation carefully before investing

2.
AGENDA
 Introduction
 Risk Perception
 Investment Opportunities
 Types of Crypto Currencies
 Meaning of Crypto Currency / Virtual Currency
 History of Cryptography and Bitcoin
 Features of Crypto Currency
 How it works??
 Facts of Virtual Currency
 Price movement from 2009 to 2018
 Government and Regulatory Talk on Crypto Currency
 Challenges in Crypto Currency
 Suggestions & Conclusion

3.
Risk Perception
Risk Averter Risk Neutral Risk Taker
Investment Opportunities
• Shares, Debentures, Bonds - Types
• Treasury Bills, Certificate of Deposits,
Commercial Papers, Call Money Market,
Discount Market and other securities.
• Deposits in Gold, Silver and Platinum.
• Real Estate, Guarantees & Mortgages
• Deposits in Financial Institutions,
Commercial Banks and Non Banking
Financial Institutions such as Nidhi, Chit
Funds, etc.
• Mutual Funds – Growth, Income Balanced,
and Tax funds.
• National Savings Certificate, Post Office
• Investment on Insurance, Provident Fund,
Pension Fund, etc.
• Money Market Mutual Funds and other
innovative schemes,
• Derivatives – Futures and Options
• Swap Deals – Interest and Currency
• Commodity Market – F & O
• Exchange Traded Funds
• Foreign Currency Convertible Bonds
• American Depository Receipts
• European Depository Receipts
• Indian Depository Receipts
• Secondary Market – National and
International
• Startup Financing and Incubation Centers
• Venture Capital & Strategic Alliances
• Virtual Currency / Crypto Currency

4.
Types of Crypto Currency
Litecoin (LTC) Ethereum (ETH) Ripple (XRP)
Zcash (ZEC)Dash Monero (XMR)

5.
Virtual Currency / Crypto Currency - Bitcoin
Bitcoin is a consensus network that enables a new payment
system and a completely digital money. It is the first
decentralized peer-to-peer payment network that is
powered by its users with no central authority or
middlemen. From a user perspective, Bitcoin is pretty much
like cash for the Internet. Bitcoin can also be seen as the
most prominent triple entry bookkeeping system in
existence.

6.
Wei Dai – Japan -1998
Crypto currency – Inventor
”Idea of a new form of money that uses
cryptography to control its creation and
transactions, rather than a central authority.”
Satoshi Nakamoto (unknown)
31st Oct, 2008 – Research Paper
2009 – bitcoin.org - Japan
Open Source Software
Satoshi left the project in late 2010
community has since grown exponentially
with many developers working on Bitcoin.
Hal Finey – First person to download the
open source software received 10 bitcoins
from Satoshi Nakamoto – First bitcoin
transaction.
History of Cryptography & Bitcoin

7.
Features of Bitcoin
Decentralized
Open Source
Peer to Peer
Easy to use
Unregulated (that is changing slowly)
Anonymous yet Transparent
Fast but irreversible transfers
How does one acquire bitcoins?
As payment for goods or services.
Purchase bitcoins at a Bitcoin exchange.
Exchange bitcoins with someone near you.
Earn bitcoins through competitive mining.

8.
Asymmetric Crypto System – Encryption –
Cryptography Technique

9.
Price Movement from 2009 to 2018 - Bitcoin
As of 28-01-2018, 1 Bitcoin is – Rs. 7,19,942 / $ 11322.51

10.
Facts of Bit Coin Currency
• Disruptive technology in the financial industry.
• Amazon bought 3 domains of Crypto Currency.
• As per research there are 21 million bit coins.
• As of now rewards are 12.5 bitcoins for every activity,
within few years it will be half
• 21th Millon bitcoin will be in the year 2040.
• One bitcoin can be divided into 0.00000001 satoshi. (Fraction
– 8 numbers)
• As of now 16.5 million bitcoins are in circulation.
• Countries which are accepted Bitcoin as a form of currency –
US, Canada, Japan. South Korea, Australia, European
Union, etc..
• Countries which are not accepted Bitcoin as a form of
currency – Island, Vietnam, Bolivia, Ecuador, China ,
Russia, etc..

11.
Ministry of Finance - 'Ponzi scheme'.
RBI has issued 3 warnings – illegal activities, such as, terror
funding, smuggling, drug trafficking and other money-
laundering Acts.
IT department - Notices to about 5,00,000 HNI.
Post note ban, officials suspected black money conversion
into white through bitcoins which is under scanner of the tax
department due to the sudden spurt in the value of bitcoins.
Indian Crypto Traders got IT notices as the trading hits $3.5
billion.
Bank freezes accounts of top Indian crypto currency
exchanges such as Zebpay, Unocoin, BTCX India
Government & Regulatory talk on Crypto Currency

12.
 Hacking, loss of password, compromise of access
credentials, malware attack etc.
 No authorized agencies to regulate currency operations.
 There is no established framework for recourse to
customer problems / disputes / charge backs etc.
 There is no underlying or backing of any asset for VCs..
 Legal as well as Financial risks.
 Unregulated but not illegal.
 The matter of mere speculation resulting in spurt and
volatility in their prices.
Challenges in Crypto Currency / Virtual Currency

13.
Conclusion
Crypto-currency landscape is still evolving and despite its issues
and challenges. The bitcoin open technology platform is definitely
leading the way towards a more seamless digital global economy.
1. Gradual Legitimization
2. Pubic Confidence
3. Regulation or Legislative compliance
4. Payment and storage simplifications
5. Protection of data and e-wallets
Suggestions