Presentation on Financial Management
- 1. Presentation On Financial Management (FM) Topic: “Bit Coin”
- 2. Presented By: Brenjillai Gabilz Momyn, Roll No.: 02 Arup Kaibarta, Roll No.: 03 Saroj Das, Roll No.: 06 T. L. Michael Indaime, Roll No.: 14 Apurba Chakravarty, Roll No.: 35
- 3. Introduction (Crypto Currency): • Crypto currency is an Internet-based currency (similar to banknotes and coins). • It is a medium of exchange like normal currencies. • Designed for the purpose of exchanging digital information • It is a digital currency in which encryption techniques (cryptography) are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. • The first Crypto currency to be created was Bit coin back in 2009.
- 4. Bit-Coin: • Bitcoin is a Crypto currency and worldwide payment system. • It is the first decentralized digital currency, as the system works without a central bank or single administrator. • The network is peer-to-peer and transactions take place between users directly, without an intermediary. • Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
- 5. History of Bit-Coin: • Satoshi Nakamoto implemented the bitcoin software as open source code and released it in January 2009 on Source Forge. • The bitcoin network came into existence after Satoshi Nakamoto mined the first ever block on the chain, known as the genesis block in January 2009. • In 2010, Nakamoto handed the network alert key and control of the bitcoin core code repository over to Gavin Andresen, who later became lead developer at the bitcoin foundation.
- 6. Bit-Coin Vision: • Bitcoins are intended to be digital currency. • Buyers and sellers will use them and eliminate all the middlemen such as credit cards, ATM machines, etc. • Bitcoins will be safer than carrying a plastic card. • Bitcoins will be an international currency with no exchange transaction fees.
- 7. • Scarce: Bitcoin's supply is fixed; fiat’s is not. • Durable: Bitcoins can be lost or stolen, but never destroyed. Fiat currency can be easily lost, stolen, or destroyed. • Portable: Bitcoins are digital and can easily be transported over any distance with an internet connection. While fiat is relatively easy to transport cash up to a certain amount however, larger amounts can require infrastructure. • Storage: Private keys that control bitcoin ownership can be stored on paper, in our brain or on a memory. We can only store a limited amount of fiat before requiring infrastructure. Fiat vs Crypto Currency:
- 8. • Widespread Use: Fiat money achieves status of legal tender via government decree and has widespread use however bitcoin does not currently have widespread adoption. • Authenticity Verification: Bitcoins are digital and they must be identified in the public ledger by software, while fiat money is easily identifiable by eyes. Fiat vs Crypto Currency:
- 9. • The unit of account of the bitcoin system is a bit coin. • Ticker symbols used to represent bit coin are BTC and XBT. • Small amounts of bitcoin used as alternative units are milli- bitcoin (mBTC), and satoshi (sat). • Satoshi is the smallest amount within bitcoin representing 0.00000001 bitcoins, one hundred millionth of a bitcoin. • A milli-bitcoin equals 0.001 bitcoins, one thousandth of a bitcoin or 100,000 satoshis. Units:
- 10. • Decentralized. • Easy to set up. • Anonymous. • Completely transparent as the transactions are stored in a public ledger known as blockchain. • Transaction fees are miniscule. • Fast. Characteristics of Bit Coin:
- 11. • Bitcoin is the first cryptocurrency to gain ground in the real economy. • Disruptive technology in the financial industry. • Offers a 21st century alternative to brick and mortar banking. • E-commerce is becoming common place which opens further opportunities for the continued use of the currency. • Bitcoin is becoming a mainstream trend as the most popular virtual currency with the highest value in circulation compared to other cryptocurrencies. • Decline in payments using traditional payment instruments. • This momentum is expected to continue in the future. Bit Coin- An Industry Trend:
- 12. Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. Owning Bitcoin: The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money.
- 13. • Names of buyers and sellers are never revealed only their wallet IDs. • This anonymity lets the bitcoin users buy or sell anything without easily tracing it back to them. • It has become the currency of choice for people online buying drugs or other illicit activities. Anonymity:
- 14. • The blockchain is a public ledger that records bit coin transactions. • The block chain serves to confirm transactions to the rest of the network as having take place. Block Chain: • The block chain is used to distinguish legitimate transactions from attempts to re–spend coins that have already been spent elsewhere.
- 15. • Mining is a record-keeping service done through the use of computer processing power. • Mining ensures “digital scarcity" in a decentralized system by preventing the same bitcoin from being spent twice by the same person. Mining: Fig: Mining Farm • Miners keep the blockchain consistent, complete, and un-alterable by repeatedly grouping newly broadcast transactions into a block, which is then broadcast to the network and verified by recipient nod.
- 16. • Miners keep the blockchain consistent, complete, and unalterable by repeatedly grouping newly broadcast transactions into a block, which is then broadcast to the network and verified by recipient nod. Mining:
- 17. • Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. • People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally. Buying And Transferring Bit Coins:
- 18. • Reduced reliance on fiat money: Consumers have become more reliant on online transactions as a more convenient means to pay for products and services. • Access to a credit system: Being an unregulated currency that is based solely on data, bitcoin enables unbridled access to a secure credit system. This will open up new markets and opportunities. Impact of Bit Coin on the Global Economy:
- 19. • Impact on overseas remittances: For economies that depend heavily on its overseas workforce, remittances are what drives bitcoin. • Environmentalism and the economy: Bitcoin is mined through a complex software and hardware infrastructure system. And just like any other traditional method of mining, manufacturing bitcoin consume a great deal of energy. Impact of Bit Coin on the Global Economy:
- 20. • Slow Transactions: The time taken to process transactions has increased dramatically. • Expensive Transactions: The transactions are subject to a transaction fee which also creates a queue of pending transactions. • Poor mobile platform support: Despite having a huge market presence, tech-giants like apple and google still do not support bitcoin on their mobile platforms. Bit Coin Challenges:
- 21. • Privacy: Lack of privacy on public blockchain is a major challenge faced by bitcoin which makes people want to switch to other crypto assets. • Scalability: Scalability is another challenge for bitcoin. The problem of scalability arises due to bitcoin’s nature of essentially having a limit on the number of transactions that can occur within a certain time frame. Bit Coin Challenges:
- 22. Famous merchants accepting bitcoin are Expedia, WordPress, Microsoft, Reddit, Virgin Galactic, Tesla, Wikipedia, etc. Merchants Accepting Bit Coins:
- 23. 1) Green- Permissive. 2) Yellow- Contentious. 3) Red- Hostile. 4) Black- Unknown. Fluctuation of Bit Coins World Wide:
- 24. • E-Travel Smart : Online bus ticket booking portal. • Reload: Online mobile recharge platform. • Indsoft: Web hosting portal. • Tecdoc365: Utility Software management. • Fightshop: Flights/Holiday booking portal. • Dharwad International School: Educational Institute. • FashionDiva: Online cloth, accessories and home decor portal. • People place: Training and recruitment firm. Merchants Accepting Bit Coins in India:
- 25. Bit Coins Price Chart in India: Fig:
- 26. • Government Regulation: Each time a government releases official statements about the regulation of digital currencies, the price of bitcoin is normally affected. Anytime there are restrictions on the use of bitcoins, their price changes drastically. • Media influence: The media can also influence the bitcoin price significantly. Media hype can easily lead to an increase in the price, while negative news can lead to a decline in the price. Factors Affecting Bit Coins Price:
- 27. • Stability of the bitcoin network: Stability of the bitcoin network is a major factor. If most people and business organizations stopped accepting bitcoins it will lead to a fall in the bitcoin price. • The bitcoin demand and supply: The price of bitcoins largely depends on the demand and supply. High demand and low supply often leads to an increase in the price due to the limited supply. • Wider mainstream acceptance: If many well-known companies and businesses start accepting bitcoins as a means of transaction it will lead to an increase in the price of bitcoins. • Technological advancement and innovations: It has the ability to influence the bitcoin price by providing added functionalities to bitcoins, which will in turn boost their overall value and price.
- 28. Bitcoin has been outlawed in some countries: Political Analysis: • Russia was first to outlaw Bitcoin transactions claiming they have enough corruption without Bitcoin. • China is restricting it use claiming its too much speculation. • Korea outlaws it’s use by claiming it’s not a legitimate currency. • Thailand shutdown the Bitcoin exchange in their country.
- 29. Crypto-currency landscape is still evolving and despite its issues and challenges. The bitcoin open technology platform is leading the way towards a more seamless digital global economy. Bitcoin can be used as a reliable alternative for fast cashless payments by proposing solutions. It can thus be said that Bitcoin can work in parallel or even replace existing forms of currencies in the near future. Conclusion:
- 30. Thank You