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Understanding Bitcoin: Pros, Cons, and Mining

Bitcoin is a decentralized digital currency created in 2009 that exists on a peer-to-peer network. It is not controlled by any central bank or authority. Bitcoins are generated through a process called mining, where people use computers to solve complex mathematical problems to validate transactions and earn new bitcoins. While bitcoin offers benefits like anonymity, security, and lack of transaction fees, it also has drawbacks like volatility in value, limited acceptance, and inability to reverse payments.

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Sanchi Monga
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41 views9 pages

Understanding Bitcoin: Pros, Cons, and Mining

Bitcoin is a decentralized digital currency created in 2009 that exists on a peer-to-peer network. It is not controlled by any central bank or authority. Bitcoins are generated through a process called mining, where people use computers to solve complex mathematical problems to validate transactions and earn new bitcoins. While bitcoin offers benefits like anonymity, security, and lack of transaction fees, it also has drawbacks like volatility in value, limited acceptance, and inability to reverse payments.

Uploaded by

Sanchi Monga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

Presented by GROUP 11-

Sanchi Monga(024043)
Pallavi Dureja(024031)
Bitcoin, what is it?
• Bitcoin is a form of digital currency.

• No one controls it, it is a decentralized currency, which means that


no
big bank or institution can get a hold of your money.

• It is the very first form of a growing category of money called


cryptocurrency, created in 2009.

• The inventor of Bitcoin is Satoshi Nakamoto, which is not his real


name.

• Bitcoins are stored in a personal online wallet that cannot be frozen


by anyone.
Value of Bitcoin since its creation (2009-2019)
Other crypto currencies and value/coin

Bitcoin : 1 BTC = 6,93,695 INR

Litecoin : 1 LTC = 6,476 INR

Ethereum : 1 ETH = 15,147 INR


How are Bitcoins generated?

• Bitcoins aren't controlled or printed by the big banks.

• They are created digitally by a large community of ordinary


people, also, anyone can join.

• Bitcoins are 'mined' with computers, solving various


mathematical equations over the web.
How does bitcoin mining work?
What is Mining?
Mining is the process of adding transactions to the blockchain.

How does it work?


 Mining is a distributed consensus system that is used to confirm pending
transactions by including them in the block chain.
 It enforces a chronological order in the block chain, protects the neutrality
of the network, and allows different computers to agree on the state of
the system.
 To be confirmed, transactions must be packed in a block that fits very
strict cryptographic rules that will be verified by the network. These rules
prevent previous blocks from being modified because doing so would
invalidate all the subsequent blocks.
Pros and cons of using Bitcoin
PROS
• Independent currency (account cannot be frozen)

• Little to no transaction fees (perfect for


sending money overseas or travelling)

• Secure transactions (encrypted)

• Unlimited transfers and amount can


be sent

• It's essentially anonymous


CONS

• Unstable value (bitcoin currency can increase


or decrease drastically)

• Volatile market (unpredictable)

• Not widely accepted (for now)

• Payments are irreversible (no money back


guarantee)

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