Introduction To Bitcoin
- 1. INTRODUCTION TO BITCOIN Presented by AMADOU NIANE
- 2. What is Bitcoin? • Bitcoin is an innovative payment network and a new kind of money (Satoshi, 2008). • It is a protocol that is electronically created and stored (Satoshi, 2008). • Uses cryptography for security, which is extremely difficult to counterfeit (Satoshi, 2008). • Facilitates electronic payments based on mathematical proof and validation. • Bitcoins are mined using computer power in a distributed network.
- 3. What is Bitcoin? Cont.
- 4. Who created Bitcoin? • Released in 2009 by a programmer using the pseudonym Satoshi Nakamoto (Goodman, 2016). • Satoshi is Unknown
- 5. Why Bitcoin? • Bitcoins can be used to buy merchandise anonymously. • International payments are easy and cheap • No credit card fees.
- 6. Who controls the Bitcoin network? • Nobody owns the Bitcoin network much like no one owns the technology behind email or the Internet. • Bitcoin transactions are verified by Bitcoin miners which has an entire industry.
- 7. Bitcoin Characteristics • Decentralized • Open source • Peer to peer • Easy to use • Unregulated (that is changing slowly) • Anonymous yet Transparent • Fast but irreversible transfers
- 8. Bitcoin an industry Trend • Millennials and high income consumers/believers are earlier adopters • 13% of millennials and 19% of high income respondents use digital currencies to make payments on a weekly basis (Accenture, 2014). • Usage is estimated to increase in these two groups to 26% and 32% respectively by 2020 (Accenture, 2014). • Decline in payments using traditional payment instruments (Accenture, 2014). • This momentum is expected to continue in the future
- 9. Political Analysis • Not controlled by any government body. • Vietnam and Taiwan banks barred from accepting bitcoin. • United States, Canada & EU considered Pro- bitcoin (Bajpai, 2015).
- 10. Economical Analysis • Market capitalization exceeds $6 billion- 0.008% of global GDP of $78 trillion (Chokun, 2018). • 21 million bitcoins in existence today and 17,271,638 in circulation (Source: Blockchain.com) • Too small to affect Federal government ability to conduct monetary policy • Over 88,000 merchants currently use Bitcoin (Chokun, 2018).
- 11. Environmental Factors • As demand grows, more computational power required. • Miners to find alternative source of electricity- cheap coal in old plants. • Cold countries (Sweden, Ireland and Canada).
- 12. Legal Factors • Decentralized nature of the coin hinders any form of regulatory effort • This is changing: Countries such as Canada, U.S.A, E.U are putting regulations in place
- 13. Companies accepting Bitcoin • Microsoft • Overstock • Newegg • Dell • PayPal • Subway • Shopify • Expedia (Chokun, 2018).
- 14. Whatothersthink aboutBitcoin? • “Bitcoin is unstoppable” Bill Gates, Microsoft Co-Founder • “Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has an enormous value.” Eric Schmidt, Former CEO of Google • “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative. But I am not familiar with the specific product to assert whether it is the best potential setup. And we need a long time to establish confidence.” Nassim Taleb former trader and risk analyst • “If you are stupid enough to buy it, you will pay the price for it today” Jamie Dimon CEO of JP Morgan Chase (Rosulek, 2017).
- 15. Bitcoin vs Fiat money • Digital • Limited supply 21 millions • Printed by computers • Decentralized • Physical • Unlimited supply • Issued by government • Centralized Bitcoin Fiat
- 16. Bitcoin Key issues • No one is backing it • Users are not protected • It is not widely accepted • It is too volatile
- 17. Future in question • No one knows • Mostly unregulated • Governments are concerned about taxation and their lack of control
- 18. Recommendations • Crypto-currency landscape is still evolving and despite its issues and challenges • The bitcoin technology is in the stage as the internet in the 1990s • Bitcoin might not be the major Crypto- currency of the future due to its challenges and drawbacks • The bitcoin open technology platform is definitely leading the way towards a more seamless digital global economy • Invest what you can afford to lose
- 19. Questions
Editor's Notes
- #3: Reference: Satoshi, N. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Retrieved August 18, 2018, from https://nakamotoinstitute.org/bitcoin/
- #4: References: W. (2011, March 22). What is Bitcoin? (v1). Retrieved September 17, 2018, from https://www.youtube.com/watch?v=Um63OQz3bjo
- #5: References: Goodman, L. M. (2016). The Face Behind Bitcoin. Retrieved August 26, 2018, from https://www.newsweek.com/2014/03/14/face-behind-bitcoin-247957.html
- #9: References: Report: Millennials and the Wealthy Most Likely to Use Bitcoin. (2014, October 30). Retrieved September 17, 2018, from https://www.coindesk.com/study-millennials-wealthy-consumers-bitcoin/
- #10: References: Bajpai, P. (2015). Countries Where Bitcoin Is Legal & Illegal (DISH, OTSK). Retrieved August 18, 2018, from https://www.investopedia.com/articles/forex/041515/countries-where-bitcoin-legal-illegal.asp
- #11: References: Bitcoins in circulation. (2018). Retrieved September 17, 2018, from https://www.blockchain.com/en/charts/total-bitcoins Chokun, J. (2018). Who Accepts Bitcoins As Payment? List of Companies. Retrieved September 17, 2018, from https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-take-bitcoins/
- #14: References: Chokun, J. (2018). Who Accepts Bitcoins As Payment? List of Companies. Retrieved September 17, 2018, from https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-take-bitcoins/
- #15: References: Rosulek, M. (2017). 14 Bitcoin quotes by famous people – Martin Rosulek – Medium. Retrieved September 17, 2018, from https://medium.com/@MartinRosulek/14-bitcoin-quotes-by-famous-people-6e7a1a009281