bitcoin final year seminar
TRANSCRIPT
Bitcoin!
SHANTANU SINGH
1200112202
DEPARTMENT OF CSE, INTEGRAL UNIVERSITY
What is Bitcoin?
►Decentralized Digital Currency
►Like virtual cash or gold
► Transferred person-to-person
►No bank or government prerequisites
or control
►BTC ,
History of Bitcoin
First mentioned in a 2008 paper published under the name Satoshi
Nakamoto.
The price of bitcoins has fluctuated wildly since its inception.
In 2011, the value of one bitcoin rapidly rose from about US$0.30 to
US$32 before returning to US$2
During the 2012-2013 Cypriot Financial Crisis, the bitcoin price began to
rise, reaching a peak of US$266 on 10 April 2013
In the end of 2013, the cost of one bitcoin rose to the all-round peak of
US$1135, but fell to the price of US$693 three days later.
Satoshi Nakamoto’s Research
Some Facts
Limited to 21 million bitcoins
X amount released every ~10 minutes
Until 2140
Divisible to .00000001 (USD = .01)
Very difficult & expensive to hack
Controlled by the consensus of market participants
Why Does Bitcoin Have Values?
Limited / Scarce (like gold)
Decentralized (no government)
Peer-to-Peer (like torrents)
Can be anonymous
Transparent (open source)
Trusted (vetted for over 5 years)
Easy to buy and sell
Extremely low transaction fee
Irreversible (no chargebacks)
How Does Bitcoin Work?
Two parts of a Bitcoin “account”
1. Public Key – account number / address
(27-34 alphanumeric characters)
2. Private Key – password to access bitcoins in the account
Public Key Example –
1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx
How Do You Get Bitcoins?
Three ways to acquire Bitcoins:
1. Buy (from a person or exchange)
2. Barter (sell product or service)
3. Mine (run software to buy bitcoins)
How Can You Profit With Bitcoin?
Mine, then sell (becoming increasingly more difficult)
Invest or trade
Buy & Hold = very risky
Short-term trading
Offer discounts in products / services for payment in BTC
Bitcoin Speculation
Bitcoin has increased in value over 10,000% in a short period of time
Many price crashes of 50% or more
Price has recovered after each crash
The “big question”
“Will Bitcoin become widely accepted as a form of payment and a store of value?”
June 2011 Bubble
April 2013 Bubble
November 2013 Bubble
Bitcoin Speculation Tip
Don’t chase emotional buying
Do the opposite of the herd
Consider the risk and your goals
Is day trading really riskier than the “buy and hope”
mentality?
Bitcoin Wallet
Stores your Bitcoin
Four type of Wallets:
1. Software on local hard drive
2. Mobile
3. Hosted Online
4. Paper
bitcoin.org/en/choose-your-wallet
Copay: HD-Multisignature Wallet
Hardware Wallets
► Ledger Nano is a hardware wallet built upon a
ST23YT66 banking smartcard platform.
► Trezor is able to sign transactions while connected
to an online device.
Advantages / Disadvantages
Advantages
Payment Freedom
Very low fees
Fewer risks for merchants
Security and control
Transparent and Neutral
Disadvantages
Degree of Acceptance
Volatility
Ongoing Development
Thank You for your patient listening!!
1GTX5ynExvZbPYVRQKMvDufUAeypft4tAx
Donate
Bitcoins
Here!