with all the buzz, few know much about bitcoin or …...mbtc ˜btc example decentralized global peer...

The last Bitcoin block will be released near the year 2040

WITH ALL THE BUZZ, FEW KNOW MUCH ABOUT BITCOIN OR THE POTENTIALLY MASSIVE IMPACTS THIS CRYPTO-CURRENCY HOLDS

Bitcoin = The System“You know, Bitcoin is nothing like traditional currency.”

bitcoin = The currency“I bought a new car with 20 bitcoins.”

Download a Bitcoin WalletOn your PC or Mobile Device

Generates addressesto exchange BTC

(like an email address)

Each wallet has a private key(acts like a signature)

It’s a decentralized, global, peer-to-peer,

digital, online, currency.

Lingo

= No single entity / everybody owns or controls Bitcoin

= Anyone can use it, anywhere

= Direct transfers, no 3rd parties necessary

= No physical “coinage”

= Only requirement for use is an internet connection

1 BTC

0.01 BTC

0.001 BTC

0.000 001 BTC

$600$6.00$0.60

$0.0006

= 1 bitcoin

= 1 centibitcoin

= 1 millibitcoin

= 1 microbitcoin

bitcoin

bitcent

mbit, millibit, or bitmill

ubit, microbit

BTC

cBTC

mBTC

μBTC

EXAMPLE

DECENTRALIZED

GLOBAL

PEER TO PEER

DIGITAL

ONLINE

Using Bitcoin

Get bitcoins

Keep an eye on the value

1PHVXxuzFtXCVp2yit9M5caFxFjCUL4jux

A UNIQUE IDENTIFIER OF 27-34 alphanumericcharacters, beginning with

the number 1 or 3.

“This-is-mysuper-secret-password-for-bitcoin”

FOR YOU ONLY!!!!Never share this, or lose it,

because if you do yourbitcoin will be lost.

CC BY 2.0 @ Konrad Förstner

• Online purchases from vendors who accept bitcoin

• Face to Face purchases via Mobile and QR codes Scan Vendor’s Wallet QR code, enter agreed amount, done

• ATMs Scan a user's palm print, face, and government-issued ID to verify identity

• Miners volunteer necessary computer power for security and transaction verification (run by the app)

• Rewards for Miners 1. Small voluntary “thank you” transaction fees paid in bitcoin 2. Blocks of bitcoins are “Mined” or released from the 21,000,000 total bitcoins approximately every 10 minutes

CC BY 2.0 @ Jesus Solana

Sell bitcoin and withdraw local cashGet bitcoin by depositing local currency

Accept bitcoinas payment for

goods or services

Mine bitcoinsAnyone with a

connected computercan be a Miner

free “Bitcoin Miner” app

or

The Bitcoin Wallet allows you to use BitcoinOn your PC or Mobile Device

Exchangesbuy bitcoins with

traditional currencyOnline exchanges

Bitcoin ATMS

$ €

$£

More computer power donated = more chances to get the released

Bitcoin block (like a raffle)

A block currently yields

25 BTCbut the block yield halves over time.

Today there are over

12,450,000+ bitcoins in circulation.

THAT’S 59% OF TOTAL BITCOINS

LIKE MOST CURRENCIES, BITCOIN’S VALUE IS BACKED ONLY BY SUPPLY AND DEMAND, NOTHING PHYSICAL.

Bitcoin is very new and extremely volatile

1,400

1,200

1,000

800

600

400

200

006.1405.1404.1403.1402.1401.1412.1311.1310.1309.1308.1307.1306.13

Over the past year

1 bitcoinvalue ranged from between

&$68 $1,151

A common misconception: the US dollar is backed by

gold – however, it hasn’t been backed by anything since 1971.

Value is a combination of

• Strength of economy

• Risk of economy changing

• Number of notes in circulation

Bitcoin has no official value• Buyers and sellers must agree on price • Usually based around value of recent trades elsewhere

Why people do like it Why people don’t like it

No country controls Bitcoin• A global online currency can be set up, accessed, and used anywhere with no prerequisites Especially good for emerging markets where banks, ATMs, and credit card machines are rare

• Accounts cannot be frozen for any reason No country or company can own or regulate P2P bitcoin use

• More bitcoins cannot be printed, controlling inflation

• Value is not tied to a country's political security or trustworthines

No banks or companies • Less fees Credit Card companies charge sellers 2-3%

Financial Services like Western Union charge approx. $7 for every $100 sent to Mexico from the US

Bank fees are outrageous checking accounts, ATMs, minimum balance, overdraft, traveling to another country etc.

Most Bitcoin transactions are processed without fee Voluntary fees automatically put higher priority for miners to process. (Faster transaction verification)

• Nearly instant Direct P2P takes minutes to set up Takes computers minutes to verify

• Easy to carry $1 billion worth of Bitcoin fits in your pocket encrypted onto a memory stick

Moving $1 billion of gold, bills, or wampum is not easy

• Accounts are anonymous (when used correctly)

Added security from hackers and thieves

Equal playing field, no special treatment for rich or punishment for poor

Massive security risks

Criminal currency

• Without countries, banks, or companies Bitcoin security is the responsibility of the individual

• No 3rd parties No insurance to replace your money No police to find your culprit

• If a thief dupes you or a hacker accesses your bitcoin wallet payment cannot be stopped or refunded without recipient’s consent

mtgox.combitcoin.org/enbitcoinatm.comhistoryofbitcoin.orgcoindesk.com/information/why-use-bitcoincs.stanford.edu/people/eroberts/courses/cs181/projects/2010-11/DigitalCurrencies/advantages/index.html

FUTURE PROJECTIONSFOR BITCOIN

Is Bitcointhe future of

currency?

“Bitcoin today is at the level wherethe Internet was in 1994 or 1995, with

20 years of application in its future” Antonis Polemitis,

Bitcoin venture capitalist

Presented by

Bitcoin’s anonymity has attracted criminalsseeking quick untraceable richesSilk Road: an online blackmarket used Bitcoin to generate $1.3 billion in anonymous trafficking of drugs and firearms plus employing hackers and assassins.

Usability

Anonymous

• Not accepted Bitcoin is not accepted many places, especially in physical shops.

• No measure of trustworthiness or accountability

• Credit Cards are faster, free for consumers, and more available in developed countries

UnusableLosses due to lack of regulation

$367 millionUSD worth of bitcoin

Mt GoxExchange lost

$600,000USD worth of bitcoin

FlexcoinExchange lost

$50,000USD worth of bitcoin

PoloniexExchange lost

Bitcoin Exchanges aren’t banks

“Uppercase B”

“Lowercase B”

In the future, virtual currency exchanges like Bitcoin will benefit from implementing Know Your Customer (KYC) policies modeled after reputable exchangesWhy? Because it bolsters a safe and trust-driven environment.