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![Influential people on Bitcoin
It is a huge deal, it's a huge,
huge, huge deal
I do think Bitcoin is the first
[encrypted money] that has the
potential to do something like
change the world
Bitcoin is a remarkable
cryptographic achievement and
the ability to create something
that is not duplicable](https://image.slidesharecdn.com/bitcoinpresentation-160910112309/75/Bitcoin-A-New-Currency-20-2048.jpg)
![Influential people on Bitcoin
Bitcoin actually has the
balance and incentives
right, and that is why it is
starting to take off
Every informed person needs
to know about bitcoin because
it might be one of the world’s
most important developments
[Virtual Currencies] may hold
long-term promise, particularly
if the innovations promote a
faster, more secure and more
efficient payment system](https://image.slidesharecdn.com/bitcoinpresentation-160910112309/75/Bitcoin-A-New-Currency-21-2048.jpg)
Uploaded byAbhishek Dua
Bitcoin - A New Currency
The document discusses the evolution of money, emphasizing the shift from gold-backed currency to fiat money and the emergence of cryptocurrencies like Bitcoin. Bitcoin, created in 2009 by Satoshi Nakamoto, is a decentralized digital currency that offers benefits such as privacy, limited supply, and resistance to hyperinflation. The document also outlines challenges facing Bitcoin, including fluctuating value, security concerns, and low adoption rates.
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Bitcoin - A New Currency
- 1. BITCOIN – THENEW CURRENCY
- 2. “Na biwi nabacha, na baap bada na maiya, The whole thing is that ki bhaiya sabse bada rupaiya”
- 3. Revolutionary changes insociety Freedom Revolution Industrial revolution Technological revolution Social Media revolution Monetary Revolution
- 4. Why do weneed money?
- 5. Evolution of Money •Portability • Durability • Scare • Divisibility
- 6. Backed by theGold Standards • Before 1918, which is less than 100 years back, there were more than 5,000 different bank notes in circulation in US alone • Each US dollar bill was issues by a different bank • The dollar bill can be exchanged against the precious metal like gold or silver • This kind of money is called as “backed by the gold standards”
- 7. Evolution of Money FIAT Money •Portability • Durability • Scare • Divisibility
- 8. FIAT Money • FIATmeaning – something which has no intrinsic value • Contrary to our belief, the money we currently use is the FIAT money and not backed by the “gold standards” • Features of FIAT Money • It is a centralized currency • It is less than 100 years old • The value to the currency is assigned by the central authority and we believe it
- 9. Scope of Improvement Portability •Physical money can be moved anywhere • With e-money, 3rd parties are involved, so portability of the money is at their mercy Global Citizen • National currencies are limited to national boundaries • For international transactions, hefty transaction fees needs to be paid (up to 15%) • Approx 6 trillion dollars are exchanged daily and its still growing Hyperinflati on • Unlimited Supply and free to use • Supply depends on the central authority controlled by monetary policies • Supply is increased for various reasons – give economy a lift or elections or fund a war
- 10. Hyper Inflation • Inflationarises when there is increase in supply of money and hence increase in demand • With inflation, the value of our money reduces • Increase in supply in a very short period of time causes hyperinflation • In less than 100 years, more than 55 cases have been recorded of hyperinflation • Examples: • 1946 – Hungary, the daily inflation rate rose to almost 200% • 2008 - Zimbabwe Dollar was loosing half its value every 25 hours • 2014 – Russian Rubble lost almost 40% of its value
- 11. Bitcoin • Came intoexistence in Jan 2009 • An anonymous person named Satoshi Nakamoto invented it • Australian Entrepreneur Craig Wright recently claimed that it was his invention • It is peer-to-peer pseudonymous digital currency • "Peer-to-peer" (P2P) – No central authority creating new money or clearing transactions • "Pseudonymous" - The real world identity of the parties of a transaction can be kept hidden from the public identified by address only • It is precious as supply will be only to 21 mn units • It has benefits of both physical and digital money * Digital currency using encryption techniques for regulated generation & verification of transactions & operating independently across all boundaries
- 12.
- 13. Characteristics & Benefitsof Bitcoin Easily transferable anywhere in the world – Digital Cash Decentralized currency – no 3rd party involved Bitcoin Is legal Cryptocurrency Global currency- no country owns it and no country can shut it down
- 14. Characteristics & Benefitsof Bitcoin Privacy is maintained. You have the right to spend your money anywhere without disclosing the identity Precious and rare – only 21 Mn units can be generated, 14 Mn generated so far Limited Supply – resistant to hyper inflation Bitcoin is a number – so it is infinitely divisible. At present, divisible to 8th unit. 1 BTC = 100,000,000 Satoshi No transaction costs are involved currently for procurement/trade It is easily portable with the use of bitcoin wallet There are no issues with durability with the currency The Bitcoin block mining reward halves every 210,000 blocks
- 15.
- 16. Why do webother? – Future of Bitcoin 15 23 0 5 10 15 20 25 2013 2014 Trading Volume (In Mn USD) Trading Volume (In Mn USD) 3.19 7.95 0 1 2 3 4 5 6 7 8 9 2013 2014 Bitcoin Wallets (Nos) Bitcoin Wallets (Nos) 3 510 0 100 200 300 400 500 600 2014 2016 Bitcoin ATMs (Nos) Bitcoin ATMs (Nos)
- 17. Why do webother? – Future of Bitcoin 96 355 0 50 100 150 200 250 300 350 400 2013 2014 VC Investment (In Mn USD) VC Investment (In Mn USD) Companies Type Funded by Amount (Mn USD) Xapo Online Wallet Index Ventures & Greylock Partners 40 Bitpay Bitcoin payment service provider Index Ventures 30.5 Blockchain Online Wallet & other bitcoin related services Lightspeed Venture Partners and Wicklow Capital 30 Top 03 VC deals in 2014 • Ex CEO Citibank Vikram Pandit and NYSE have also invested 75 Mn USD in bitcoin startups in 2015 • Paypal founders, Ebay founders & Expedia have invested 116 Mn USD in 2015 • Blockstream raised 55 Mn USD in 2016 & Coindesk raised 75Mn USD in 2015 some of the largest funding in the history of virtual currency
- 18. Why do webother? – Future of Bitcoin Top 5 Countries where bitcoin is used - 2014 Companies which started accepting bitcoins - 2014
- 19. Influential people onBitcoin Bitcoin is better than currency in that you don’t have to be physically in the same place It's a technical tour de forceIt’s a bold entrepreneurial technology
- 20. Influential people onBitcoin It is a huge deal, it's a huge, huge, huge deal I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable
- 21. Influential people onBitcoin Bitcoin actually has the balance and incentives right, and that is why it is starting to take off Every informed person needs to know about bitcoin because it might be one of the world’s most important developments [Virtual Currencies] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system
- 22. Challenges - Bitcoin •Resistance from the 3rd parties • Value of bitcoin is very fluctuating • The basic of bitcoin is technology, but it is still a challenge for developing economies • Security • Bitcoin transaction fees • Processing time of transactions • Low adoption rate
- 23. Other Virtual/Cryptocurrencies Litecoin Created by– Charles Lee Creation date – 2011 Peercoin Created by – Sunny King Creation date – 2012 Darkcoin Created by – Sunny King Creation date – 2013 Dogecoin Created by – Shibu Inus Creation date – 2013 Currencies Market Capitalization Price (USD) (As of 19th Aug, 2016) Bitcoin $4,754,296,898 $574.40 Litecoin $121,860,749 $3.53 Dogecoin $20,112,825 $0.25 Peercoin $14,882,010 $0.68 Darkcoin $11,066,538 $2.24 Primecoin $961,543 $0.12
Editor's Notes
- #2 Anybody heard about it? What do you think?
- #3 1) serious topic with some profound words 2) Cheeky lines perfectly describe the importance of money in our life
- #4 Lot of changes in the past few decades Changes influence behaviour towards the work, society & life Few exception – changes the entire outlook of the mankind. Well one of them is here changes entire fabric of society Freedom Revolution – started in 1857 and stayed for around 100 years Industrial revolution – changed the entire gamut of working, benefited the society Technological change – Social revolution – things like internet, whatsapp, facebook twitter, etc have changed the way we communicate with each other. Impacted our life and social behaviour One such similar change is around the corner, in fact it has already made a lot of impact in the society - monetary revolution – change in our currency, change in money
- #5 Technological solution to which the society faces – medium of exchange 4 reasons why we need money Double co incidence Measure of value – acts as a yartdstick of common measure Store of value – deferred payments Easily divisible
- #6 To be classified as money – 4 parameters – explain them What do we use as money - 11000 years back – 9000 BC – first thing to be used as money was cattle, grain, sea shells, thing which are scare and not rocks and sand – available in plenty (benefits and difficulties) After 5000 years – 4000 BC – precious metals emerged various tribes started changing precious metals against goods (benefits and difficulties – different currencies) 1000 years back – People deposited coins with goldsmith and got the paper receipts (benefits)
- #7 Easier to exchange the receipts than coins
- #8 Past 100 years – countries excited the gold standards Money we now use is called as FIAT money
- #9 Central body keeps a tap on demand and supply through monetary policies Bretton woods agreement - 730 delegates from all 44 Allied nations gathered at the Mount WashingtonHotel in Bretton Woods, New Hampshire, United States
- #10 Portability - 1) 3rd parties (bank, clearing house, credit card) – confirms the transactions 2) E money – does not move, 3rd party confirm the transaction and authorizes it and we trust it 3) Lot of transactions in past few years made 3rd party powerful 4) 3rd party – right to confirm, authorize and in some cases – reject the transaction 5) Bank – wont allow you to open a bank account if poor, credit card agency – wont give credit card with poor credit ratings 6) You cannot use your money – it is as permissible by these parties (scope of improvement) Global citizen – 1) increasing global trade 2) Fees for normal transactions vary from – 0.5% for multinationals to 15% for individuals transferring funds Hyper inflation – 1) What is hyperinflation 2) Our money losses value with hyperinflation created by government
- #14 US, Canada, greenland, south Africa – are in favour\ Russia – against it India – cant say
- #15 Point no. 2 Why??
- #17 Highest on 26th November 2015 - 2.86 million worth of bitcoin was traded across all exchanges indexed by the data provider Estimated that by end of 2015 the number will be 12 Mn We have bitcoin exchange like – bitfinex, coinbase, bitsmap for exchange for india we have btcxindia, coinsecure Wallets in india are provided by – unicoin, zebpay
- #18 By the end of 2015 Nov – total funding of 1Bn USD have been made in this sector
- #19 Silk road trades for bitcoin
- #20 Richard branson – space tourism Bill gates – Microsoft Warren Buffet
- #21 Dr. Eric Schmidt - Holds a PhD in Computer Science, was CEO of Google and is now Executive Chairman. He is also ranked as the 138th-richest person in the world, with an estimated wealth of $8.3 billion. Peter Thiel - Co-Founder of Paypal and investor in Bitcoin merchant processor Bitpay. Chamath Palihapitiya - Venture capitalist and partial owner of the Golden State Warriors.
- #22 Ben Bernanke - former Chairman of the United States Federal Reserve Leon Louw Noble Peace Prize Nominee Julian Assange - Founder of Wikileaks.
- #23 120000 bitcoins stolen in 2016 from bitfinex major bitcoin exchange In india, a bitcoin exchange was raided in 2016
- #25 Whether to be classified under asset, currency, cash, property under income tax act How will RBI govern it? How will government govern the currency