1. itcoins

2. Topics to be discussed
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What is bitcoin
How it works
How is it valued
Pros and Cons

3. Value of Bitcoin
1 BTC= 1165 USD

4. What is Bitcoin?
Bitcoin is a digital currency and form of
decentralized electronic money which was
developed by Satoshi Nakamoto in 2008.
The developer released a software that could be used
to digitally send, receive, and store bitcoins.
The project is now maintained by a
community of developers and is available
as an open-source software.

5. What is Bitcoin?
Bitcoins are saved in digital wallets ad transactions
are verified by decentralized network of computer
users from across the globe.
Bitcoins can be sent and received through the
internet, similar to sending cash digitally.
The currency is exchanged through the
decentralised Bitcoin network, without going
through an external bank/financial
institution, or government.

6. Popularity among different countries

7. How it works?
• Every “account” consists of the public key ( =
bitcoin address) and the private key.
• Anyone who knows your public key, can send
you bitcoins.
• To spend bitcoins, you have to know the
private key.
• The transaction is broadcasted to the bitcoin
network.
• The miners confirm the transactions.
”14nRKoXJAUpKYYbzw6Yrqh9gW2p26zerpW”

9. How is it valued?
A number of electronic marketplaces called
“Bitcoin exchanges” allow for the purchase or
sale of bitcoins using different currencies.
Jan 2014: There were about 14 million Bitcoins in
circulation

10. Acceptance!!!
Many retailers like Overstock, OkCupid have
started accepting BitCoins as a payment.
Many others like Amazon etc. may soon join.
You can use Bitcoins to buy music, books, food, etc.

11. Acceptance!!!
A subway shop in Russia has started
accepting Bitcoins

12. Pros
• No unpredictable inflation by ”printing more
money” by political decision.
• Transactions travel instantly
• Send money in seconds to anyone with
internet access – with zero transaction costs.
• Highly anonymous, in certain conditions
• Every transaction is public, though!
• If you memorize your private key, the only way
to steal your bitcoins (even for the authorities)
is to torture you (or spy or hack your
computer).
• Easy to use
• You can choose the tool (usability / security)

13. Cons
 Bitcoin is rather new and its still in marginal use ->
high volatility.
 BTC money supply:
500,000,000 €
 EUR money supply: 5,000,000,000,000 €
 It’s currency for the internet – take down the
internet, and you cannot use bitcoins.
 Perhaps not suitable for any country’s official
currency.
 Lose your private key -> lose your bitcoins.
 No means to cancel the transaction!

14. Reactions and critics
The Chinese government restricted Chinese banks
from making transactions using bitcoins
The Bank of France also warned users regarding the
usage of bitcoins
The Reserve Bank of India has cautioned the
users, holders and traders of Bitcoins, about the
potential financial, legal, customer protection and
security related risks that they are exposing
themselves to

15. Reactions and critics
The Chinese government restricted Chinese banks from
making transactions using bitcoins
The Bank of France also warned users regarding the usage of
bitcoins
The Reserve Bank of India has cautioned the users, holders and
traders of Bitcoins, about the potential
financial, legal, customer protection and security related risks
that they are exposing themselves to