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PresentedBy:-
Anjana Sagathiya
Roll No:-
91600103164
Questions on Bitcoin
• What is Bitcoin?
• Why is it created?
• How did it get started?
• Why does it have value?
• How does it works?
• How can we earn Bitcoin?
• What is the advantages of Bitcoin?
• What is the Disadvantages of Bitcoin?
• References
What is Bitcoin?
• Bitcoin can be used to buy or sell items from people and companies that
accept bitcoin as payment, but it differs in several key ways from
traditional currencies.
• In Bitcoin,Transactions are made with no middle men – meaning, no
banks!
• It is a form of digital currency (physical form is absent), created and held
electronically.
• There is many digital currency like ripple,etherum,litecoin etc,but Bitcoin
is more used.
Why is Bitcoin created?
• Bitcoin is decentralised virtual currency that provides secure global
transactions very quickly and does not have any third-party manipulation.
• Explore investment Opportunities in the world’s fastest growing economy.
• Bitcoin is the part of Block chain.
• If we want to send money in foreign then we face to many problems like
interferences of multiple bank,transected only business hours,additional
fees to transfer money and it takes more time.
• To solve these all problems Bitcoin is created.
• In Bitcoin no third party required,no additional fees required,and
transaction can be done very fast and it is secure also.
How did Bitcoin get started?
• On October 31st, 2008, “Bitcoin: A Peer-to-Peer Electronic Cash System”
was posted to a cryptography mailing list, published under the name
“Satoshi Nakamoto”. The whitepaper outlined the foundation of how
Bitcoin would operate.
• On August 18, 2008, an unknown person or entity registered the
Bitcoin.org domain.
• On January 8th, 2009, the first version of Bitcoin is announced, and
shortly thereafter, Bitcoin mining begins.
• It described a sytem of cryptocurrency that was not backed by any
government or any form of existing currency.
• Interestingly, there is no such person. It’s a pseudonymn
Why does Bitcoin have value?
• Bitcoins are like diamonds or gold – no intrinsic value.
• As more people want to buy Bitcoins, sellers will charge more.
• It’s a free market and as wild as you can imagine.
• No rules, regulations or oversight.
• Speculators who think Bitcoins will be successful, buy as many as they
can and hold them price appreciation.
• If 21 million Bitcoins are in circulation and current price is $500, then
total market value is ~$10 Billion.
How does Bitcoin work?
• A transaction is a transfer of value between Bitcoin walletsthat gets
included in the block chain.
• Bitcoin wallets keep a secret piece of data called a Private key or seed,
which is used to sign transactions, providing a mathematical proof that
they have come from the owner of the wallet.
• The signature also prevents the transaction from being altered by anybody
once it has been issued.
• All transactions are broadcast to the network and usually begin to be
confirmed within 10-20 minutes, through a process called mining.
• Bitcoin technology is worked on Blockchain technology.
• Blockchain technology is combination of three technology
1) private key cryptography
2) a distributed network with
a shared ledger
3) an incentive to service the network’s
transactions,record-keeping and security.
• these technologies work together to secure digital relationships.
Cryptographic keys
• Two people wish to transact over the internet.
• Each of them holds a private key and a public key.
• The main purpose of this component of blockchain technology
is to create a secure digital identity reference.
• Identity is based on possession of a combination of private and
public cryptographic keys.
• The combination of these keys can be seen as a dexterous form
of consent, creating an extremely useful digital signature.
• In turn, this digital signature provides strong control of ownership.
• But strong control of ownership is not enough to secure digital
relationships. While authentication is solved, it must be combined with a
means of approving transactions and permissions (authorisation).
• For blockchains, this begins with a distributed network.
Distributed Network
• Much of the value of the bitcoin blockchain is that it is a large network
where many user or validators.
• In ,there is use of mathematical verification in blockchain.
• the size of the network is important to secure the network.
• That is one of the bitcoin blockchain’s most attractive qualities — it is so
large and has amassed so much computing power.
• When cryptographic keys are combined with this network, a super useful
form of digital interactions emerges.
• The process begins with A taking their private key, making an
announcement of some sort — in the case of bitcoin, that you are sending
a sum of the cryptocurrency — and attach it to B’s public key.
INCENTIVE SERVICE
• This technology is very insentive serivce for transaction ,record keeping
and security.
• So many people use this technology.
• In future,bitcoin may be take place of all bank transaction.
• It is very easiest technology.
How can we earn Bitcoin?
• Earn Bitcoins by accepting them as a means of payment
• Earn free Bitcoins by completing tasks on websites
• Earn Bitcoins from interest payments %
• Earn Bitcoins from mining
• Earn Bitcoins by getting tipped
• Earn Bitcoins through trading
• Earn Bitcoins as a regular income
• Earn Bitcoins from gambling – not suitable for everyone
Advantages of Bitcoin
• It is decentralized
• It is easy to set up and it is fast
• It is anonymous
• It is completely transparent
• Transaction fees are miniscule
• Transactions are irreversible
Disadvantages of Bitcoin
• New and uninvestigated financial product
• History is full of illegal and questionable activity
• Absence of relevant theoretical background
• Highly volatile value and an unknown issuer
• Undefined legal status
• Unregulated commodity and absence of consumer protection
• Anonymity and blurry taxation status
• Illegal or undefined in most countries of the world
References
• http://earn-bitcoins.com/#earn-bitcoins-by-accepting-them
• https://blockgeeks.com/guides/what-is-bitcoin/
• https://www.quora.com/Why-were-Bitcoins-created
• https://www.genesis-mining.com/the-history-of-bitcoin
• https://bitcoin.org/en/how-it-works
• https://www.quora.com/Who-controls-the-value-of-bitcoin
