2. WHAT IS
CRYPTOCURRENCY??
It is the medium of exchange for goods
and services on internet.
Unlike the our hard cash it is impossible to
touch and feel this.
3. THEN WHAT’S DIGITAL
CURRENCY??
Ven currency
Centralised systems
Crypto-currency
Decentralised systems
•E-gold
•digi-cash
Examples Examples
•Bitcoin
•Peercoin
4. Birth of Cryptocurrency
Invented in 2009 by Japanese software
developer Satoshi Nakamoto (on hypothesis)
on the name ‘BITCOIN.’
5. What is it? What happened?
Bitcoin
What is Bitcoin?
6. What is Bitcoin?
First and populous of players.
Purely Electronic money, follows peer-to-
peer electronic cash transfers mechanism
between two parties .
Relies on network of computers that use
Bitcoin protocol which is confidential till
now.
7. Operations with Bitcoin
Process of earning Bitcoins is called
mining.
Users/Clients of Bitcoins are termed as
miners.
Similar to CASA accounts ,Bitcoin uses
‘virtual wallet’ system to make
transactions.
Miners can buy/sell Bitcoins through online
exchanges.
8. Value of Bitcoin??
The value of Cryptocurriencies are
always based on speculation.
So is the price of Bitcoin is
volatile.
Depends on the users confidence
The value of Bitcoin against rupee.
1 =Rs39,005/-(as on 12/3/2014)
9. How secure ??
Uses a sophisticated ‘Bitcoin protocol’
Transactions made by sending Bitcoins
from one wallet to a unique key
associated with another wallet in a
‘cryptographic’ process verified by
computers.
Its best security systems which are
expected to be the better than Google.
10. Pros
Widely accepted online by more than 1000
merchants
Eco friendly
No taxes for out bound transactions too.
Its decentralized system.
Secure system
11. Cons
Very volatile !
There is always a chance to get hacked.
Not subjected to any of the jurisdiction.
12. Cons(cont.)
Its decentralized system attracts
smugglers and money laundering.
It may turn as another international ponzi
scheme, as its operators are not properly
identified till date.
Adds woes to developing countries by
increasing CAD.
13. What is its future??
Recent updates from Mt Gox about
“unusal activity” has decreased the
miners’ confidence.
If it goes well,Bitcoin will be in a
eminent position in market structure
after Dollar and Euro.
14. What is its future??(cont)
Up coming countries like Cyprus are using
Bitcoin to control their inflation.
Bitcoin seems to be emerging victorious
especially in Asia.
15. On an ending note..
Major growth in ‘Cryptocurrencies’ is not
good for standard fiscal bodies as they
may lead to another financial crisis.
The policy makers should come up with
new flexible policies to minimize the
‘Cryptocurrencies’ usage.
16. When’s India’s turn??
Yes! Recently a digital currency has been
announced by the name ‘laxmicoin’
