Bitcoin - Digital Currency

BITCOIN CURRENCY

Charmi Popat (03)SVKM’s NMIMS SPP SPTm (School

of Pharmacy & Technology Management)

CONTENT

What is Bitcoin?

Its characteristics & valuation

Overall acceptance scenario

How Bitcoin transaction works?

Use of Bitcoins in real world

Bitcoin ATM

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What is Bitcoin?

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Digital currency

Peer-to-peer payment network

Japanese programmer:

Satoshi Nakamoto

(2009)

How Bitcoin transaction works?

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Online BuyerOnline

Merchant

Validate

Flow of Bitcoin & cash

Receivers

Private Key

Its characteristics

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Open-source software program 

“crypto-currency”

“Mining”

Portable

Authenticity Verification

Finite (21 million bitcoins and the last expected to be “mined” in 2140)

Currency Valuation

• Supply and demand• 1 BTC = $847.24 (As of Jan.31st. 2014)

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Advantages & Disadvantages

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- Decentralized- Payment freedom- Very low fees- Difficult to Counterfeit 

- online security- Volatile- a lack of regulation

Use of Bitcoins in real world

• 20 business (such as apartments, law firms, and popular online services such as WordPress)

• August 2013, US$ 1.5 billion• Bitcoin gambling sites

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Physical goods

• Bitcoinshop.us

• BitcoinStore.com

Travel

• Bitcoin.Travel

Online auctions

• Silkroadvb5piz3r.onion

Greeting cards

• Amazon.com gift cards

Example of website where bitcoin is used

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Places where Bitcoin is accepted in the world

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Use of Bitcoins in real world

• US - • “surrogate currency”• seized bitcoins from

purchasing a controlled substance

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Money laundering

Bitcoin ATM

• World’s 1st Bitcoin ATM- Vancouver, Canada at Wave coffee house

• Maker - Robocoin • It’s a Cash-Only Machine• Works on - Biometric Identification

System• It can dispense hard cash in exchange for

Bitcoins• Transaction recorded in – Public Ledger• Create on the spot new a/c – 4min (Scan

your palm, Government identification card & Face recognition)

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