BitCoins, Digital Currency

1. “BitCoins”
The Digital Currency
Presented By:
Yansi Keim, 01120703111
B.Tech, VII Semester
Information Technology
Presented To:
Mr. Gulzar Ahmad
Asst. Professor
Dept. of Information Technology
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2. BitCoin
The New
CryptoCurrency
Contents
 Vision of BitCoin?
 Where do it comes from?
 Who sells BitCoins?
 Who Accepts BitCoins?
 Advantages of BitCoins?
 Other Digital Wallets around the world
 Disadvantages of BitCoins
 Why would I want some Bitcoins?
 Future Scope
 References
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3. BitCoin lets you send money over the Internet !
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4. Vision of BitCoins?
 Bitcoin is a software-based(open-source) online payment
system described by Satoshi Nakamoto.
 Decentralized virtual currency
 Main unit of account “BitCoin (BTC)”.
 Direct contact between Buyers and sellers and eliminates all the
middlemen such as credit cards, ATM machines, etc.
 No exchange transaction fees
 Safer than carrying a plastic card.
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7. Where Do BitCoins Come From?
• BitCoin is based on solving an encryption formula which requires extreme amounts
of computing power.
• Each time you solve a portion of the formula you earn a “BitCoin.”
• Websites like Deepbit.net help you set up the mining formula.
• Companies began to sell hardware called gate array miners to enhance the
processing speed.
• Only 21 million BitCoins will ever exist
• Nearly all BitCoins have been mined and are now in circulation.
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9. Who Sells BitCoins?
• Larger Buyers go to Exchanges where Exchange is a website with significant software
and funding.
• Eg. Bitstamp.net, BTC-E.com etc.
• Locally from small Dealers who sells Bitcoin to individuals who use them for e-
commerce. They withdraw Bitcoins from their account at an Exchange and sell them to
you.
•Through ATM’s, however they don’t convert BitCoins to cash.
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Fig. Representation of Exchanges

10. Who Accepts BitCoins?
• Thousands of online merchants such as:
• Pirate Bay – Online sharing site for questionable materials.
• OKCupid – Online dating site
• Overstock.com – Sells clearance merchandise
• TigerDirect.com – Major electronics retailer
• 50,000 Retail stores (and counting) accept BitCoin
• Hotels in Las Vegas
• Gift Cards for GAP, Lowes, Burger King, etc.
• Mostly small merchants who want to increase traffic.
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11. Bitcoin Value – 1 Year History
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Fig. BitCoins sale in United States

12. • Truly International
• Much cheaper than wire transfer.
• It’s money with API.
• Lowers the cost of processing.
• Credit cards charge ~5% to the supplier.
• Bitcoin transactions would cost almost nothing.
• Reduces Fraud
• Credit card fraud costs billions of dollars each year
• Don’t need to carry plastic in your wallet
• Smartphone Apps can work with Bitcoin
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13. Digital Wallet around the world
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14. BitCoin Issues - Legality
 Bitcoin transactions are untraceable.
 Seller doesn’t tell the IRS(Internal Revenue System)
 Buyer can be anonymous.
 U.S. Treasury and IRS wants it stopped.
 First big user of Bitcoin was Silk Road
 Drug trade proliferated
 No money laundering necessary
 It’s very hard to stop Bitcoin – it’s an international scheme.
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15. Bitcoin Issues - Safety
 Largest Exchange, Mt Gox in Japan just went bankrupt
 Hackers were siphoning off their Bitcoins
 They lost $450 million dollars
 Account holders are the real losers
 Electronic Wallets
 Many websites have created “secure” electronic wallets for
you.
 There are Wallets for Windows, Mac, iPhone, and Android
 Some “Wallets” deduct a small fee for every transaction
 Wallets have proven to be safe, but no guarantees.
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16. Why Would You Want Some
BitCoin?
• It’s a novelty and would be fun to try.
• Show your friends that you are a true groundbreaker.
• You don’t trust Credit Cards and want to buy stuff online.
• You want to buy something on the internet that is
“unconventional.”
• You want to sell something that is “unconventional”.
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17. Future Scope
“Digital currency makes a lot of sense”
 It could eliminate a lot of middle man costs (credit cards, wire fees, etc.)
 It could be extremely easy to use
 It could eliminate billions of dollars in credit card fraud and identity theft.
• BitCoin may utterly fail but some form of digital currency will probably emerge.
 It must be safe
 It must be traceable by government entities
 It must be easy to use.
 People must have trust in it’s value
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18. https://deepbit.net/ 01/08/2014, 11:49:59
http://www.tomshardware.com/ 11/08/2014, 13:02:09
https://www.coinbase.com/ 13/08/2014, 04:12:29
http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country 13/09/2014, 23:23:35
http://blockchain.info/ 04/10/2014, 12:43:29
http://en.wikipedia.org/wiki/Bitcoin 07/10/2014, 01:12:12
https://bitcoin.org/en/you-need-to-know 10/11/2014, 15:45:23
https://www.weusecoins.com/en/ 18/11/2014, 18:03:59
REFERENCES
- Thanking You