Bitcoin - Introduction to Virtual Currency / Cryptocurrency
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The document explores Bitcoin and other cryptocurrencies as emerging financial instruments, highlighting their potential risks, investment opportunities, and types. It discusses the history of Bitcoin, its decentralized nature, market price movements, and regulatory challenges faced by the industry. Lastly, it emphasizes the need for gradual legitimization and regulation to foster confidence and streamline transactions in the evolving cryptocurrency landscape.
Bitcoin - Introduction to Virtual Currency / Cryptocurrency
- 1. BITCOIN Can it be a new emerging Financial Instrument??? By SwaminathS Crypto Currencies (Bit Coin) are subject to high Price Fluctuations; please read and understand the power point presentation carefully before investing
- 2. AGENDA Introduction Risk Perception Investment Opportunities Types of Crypto Currencies Meaning of Crypto Currency / Virtual Currency History of Cryptography and Bitcoin Features of Crypto Currency How it works?? Facts of Virtual Currency Price movement from 2009 to 2018 Government and Regulatory Talk on Crypto Currency Challenges in Crypto Currency Suggestions & Conclusion
- 3. Risk Perception Risk Averter Risk Neutral Risk Taker Investment Opportunities • Shares, Debentures, Bonds - Types • Treasury Bills, Certificate of Deposits, Commercial Papers, Call Money Market, Discount Market and other securities. • Deposits in Gold, Silver and Platinum. • Real Estate, Guarantees & Mortgages • Deposits in Financial Institutions, Commercial Banks and Non Banking Financial Institutions such as Nidhi, Chit Funds, etc. • Mutual Funds – Growth, Income Balanced, and Tax funds. • National Savings Certificate, Post Office • Investment on Insurance, Provident Fund, Pension Fund, etc. • Money Market Mutual Funds and other innovative schemes, • Derivatives – Futures and Options • Swap Deals – Interest and Currency • Commodity Market – F & O • Exchange Traded Funds • Foreign Currency Convertible Bonds • American Depository Receipts • European Depository Receipts • Indian Depository Receipts • Secondary Market – National and International • Startup Financing and Incubation Centers • Venture Capital & Strategic Alliances • Virtual Currency / Crypto Currency
- 4. Types of Crypto Currency Litecoin (LTC) Ethereum (ETH) Ripple (XRP) Zcash (ZEC)Dash Monero (XMR)
- 5. Virtual Currency / Crypto Currency - Bitcoin Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.
- 6. Wei Dai – Japan -1998 Crypto currency – Inventor ”Idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority.” Satoshi Nakamoto (unknown) 31st Oct, 2008 – Research Paper 2009 – bitcoin.org - Japan Open Source Software Satoshi left the project in late 2010 community has since grown exponentially with many developers working on Bitcoin. Hal Finey – First person to download the open source software received 10 bitcoins from Satoshi Nakamoto – First bitcoin transaction. History of Cryptography & Bitcoin
- 7. Features of Bitcoin Decentralized Open Source Peer to Peer Easy to use Unregulated (that is changing slowly) Anonymous yet Transparent Fast but irreversible transfers How does one acquire bitcoins? As payment for goods or services. Purchase bitcoins at a Bitcoin exchange. Exchange bitcoins with someone near you. Earn bitcoins through competitive mining.
- 9. Asymmetric Crypto System – Encryption – Cryptography Technique
- 11. Price Movement from 2009 to 2018 - Bitcoin As of 28-01-2018, 1 Bitcoin is – Rs. 7,19,942 / $ 11322.51
- 12. Facts of Bit Coin Currency • Disruptive technology in the financial industry. • Amazon bought 3 domains of Crypto Currency. • As per research there are 21 million bit coins. • As of now rewards are 12.5 bitcoins for every activity, within few years it will be half • 21th Millon bitcoin will be in the year 2040. • One bitcoin can be divided into 0.00000001 satoshi. (Fraction – 8 numbers) • As of now 16.5 million bitcoins are in circulation. • Countries which are accepted Bitcoin as a form of currency – US, Canada, Japan. South Korea, Australia, European Union, etc.. • Countries which are not accepted Bitcoin as a form of currency – Island, Vietnam, Bolivia, Ecuador, China , Russia, etc..
- 13. Ministry of Finance - 'Ponzi scheme'. RBI has issued 3 warnings – illegal activities, such as, terror funding, smuggling, drug trafficking and other money- laundering Acts. IT department - Notices to about 5,00,000 HNI. Post note ban, officials suspected black money conversion into white through bitcoins which is under scanner of the tax department due to the sudden spurt in the value of bitcoins. Indian Crypto Traders got IT notices as the trading hits $3.5 billion. Bank freezes accounts of top Indian crypto currency exchanges such as Zebpay, Unocoin, BTCX India Government & Regulatory talk on Crypto Currency
- 14. Hacking, loss of password, compromise of access credentials, malware attack etc. No authorized agencies to regulate currency operations. There is no established framework for recourse to customer problems / disputes / charge backs etc. There is no underlying or backing of any asset for VCs.. Legal as well as Financial risks. Unregulated but not illegal. The matter of mere speculation resulting in spurt and volatility in their prices. Challenges in Crypto Currency / Virtual Currency
- 15. Conclusion Crypto-currency landscape is still evolving and despite its issues and challenges. The bitcoin open technology platform is definitely leading the way towards a more seamless digital global economy. 1. Gradual Legitimization 2. Pubic Confidence 3. Regulation or Legislative compliance 4. Payment and storage simplifications 5. Protection of data and e-wallets Suggestions