CRYPTOCURRENCY

Cryptocurrency is a digital
asset designed to work as a
medium of exchange that
uses strong cryptography
to secure financial
transactions.
1
BITCOIN
PRESENTED BY
SWAPNA K
1MY19MBA37

2
CONTENTS
1. Introduction to bitcoin
2. Legality of bitcoin
3. Scope of study
4. Technology behind bitcoin
5. Bitcoin mining
6. Significance
7. Earnings through bitcoin
8. Advantages
9. Disadvantages
10. Legality of bitcoin
11. Conclusion 3
INTRODUCTION TO BITCOIN

• A purely peer to peer version of electronic cash that

allows online payment to be sent directly from one
party to another without going through a financial
institution.
• Bitcoin was introduced in 2009 by a person called
Satoshi Nakamato. 4
LITERATURE REVIEW
• Neha Parashar and Farida Rasiwala most respondents
feel that theft or hacking of bitcoin and technical glitches
are the major disadvantages of bitcoin.

• Anam Fatima and Vijay Kumar Tiwari bitcoin gave the

concept of blockchain which is considers as the next
revolution after internet. 5
• ITESM Fudan bitcoins are the baby currencies. in 10 years
bitcoins will be accepted as any other currency in the world.

• Chinmay A Vyas the silence of RBI on the regulatory

status of the bitcoin may prove to be damaging. An industry
would need to be regulated. The sooner this is done the
better.
6
• Dr. Eagen though it is at most successful point , there are
still issues with it need to be worked out bitcoin to be even
better. Bitcoin has to takes necessary steps to figure out
what would makes their system of currency even more
better and more accessible for everybody.

7
SCOPE OF THE STUDY
• This study focuses on Bitcoin as Cryptocurrency.
• Blockchain technology
• Bitcoin mining
• Advantages and disadvantages
• Legality of bitcoins in India
8
TECHNOLOGY BEHIND
BITCOIN

Since banks are not involved,

all the information related to
transactions are recorded on
a public ledger.
Block chain is the technology
used to maintain this public
ledger 9
BLOCKCHAIN TECHNOLOGY
• Blockchain technology is a structure that stores
transactional records, also known as block of the
public in several database. This is known as a chain, in
a network connected through peer to peer nodes.
• It is a decentralized system.
10
BITCOIN MINING

• Mining is the process of adding transactional records

to bitcoin’s public ledger of past transaction.
• Role of miner is to secure the network and to process
every bitcoin transactions.

11
12
SIGNIFICANCE OF BITCOIN

 One bitcoin worth

640945.56 Indian Rupee
 One bitcoin equals to
8739.79 US Dollar
 It can used to buy
merchandise anonymously.
 International payments are
easy. 13
EARNINGS THROUGH
BITCOIN

 Bitcoin mining

 Bitcoin trading

14
ADVANTAGES

• Global accessibility
• Control against fraud
• Cost efficiency
• Dispute mediation
• Multi signature accounts
• Trust and integrity
• Flexible transparency
15
DISADVANTAGES
• Bitcoins are not widely
accepted
• Wallets can be lost
• Bitcoins valuation fluctuates
• No buyer protection
• Risk of unknown technical
flaws
• No physical forms
• No valuation guarantee 16
LITERATURE REVIEW
• Neha parashar and Farida Rasiwala most respondents
feel that theft or hacking of bitcoin and technical glitches
are the major disadvantages of bitcoin.

• Anam Fatima and Vijay Kumar Tiwari bitcoin gave the

concept of blockchain which is considers as the next
revolution after internet. 17
• ITESM Fudan bitcoins are the baby currencies. in 10 years
bitcoins will be accepted as any other currency in the world.

• Chinmay A Vyas the silence of RBI on the regulatory

status of the bitcoin may prove to be damaging. An industry
would need to be regulated. The sooner this is done the
better.
18
• Dr. Eagen though it is at most successful point , there are
still issues with it need to be worked out bitcoin to be even
better. Bitcoin has to takes necessary steps to figure out
what would makes their system of currency even more
better and more accessible for everybody.

19
 Legality in India

Finance minister Arun Jaitley, in his budget

speech on 1 February 2018, stated that the
government will do everything to discontinue the
use of bitcoin and other virtual currencies in
India for criminal uses. He reiterated that India
does not recognise them as legal tender and will
instead encourage blockchain technology in
payment systems. 20
• In early 2018 India's central bank, the Reserve
Bank of India (RBI) announced a ban on the
sale or purchase of Cryptocurrency for entities
regulated by RBI.

• In 2019, a petition has been filed with

the Supreme court of India challenging the
legality of cryptocurrencies and seeking a
direction or order restraining their transaction.
21
CONCLUSION

• Bitcoin is a fully decentralized currency. It has value

because its supply is limited and there is demand for
it because of its low transaction costs, anonymity, 
investment possibilities and possibilities for use in illegal
activities. 

22
• Its future outlook is questionable as Bitcoin has a few severe
disadvantages such as high price volatility, susceptibility
to hacking, no protection from a central bank and no consumer
protection.
• It is therefore unlikely that it will catch on as an established currency
among the general public, as its two major advantages of anonymity
and low transaction costs are not necessarily what the average
consumer demands. However, the technology behind cryptocurrency
and Bitcoin can be applied to other currency or payment systems
which could have a lasting impact on how people spend money in
the future. 23
 REFERENCES
• Satoshi Nakamato, “Bitcoin: A peer-to-peer electronic cash system”, 2008.
• An Introduction to the Bitcoin System, Structure of Transaction
 https://pascalpares.gitbooks.io/ implementation-of-the-bitcoin-system/content/1-
transaction-4-structure.html
• Comparative study of bitcoin and other cryptocurrencies by Amandeep Kaur and
Anveet Kaur
• Bitcoin: A new currency by Dr. Eagan
• Bitcoin Cryptocurrency a review by Anam Fatima and Dr. Vijay Kumar Tiwari
• Bitcoin and the blockchain: A premier on digital stored value
24
 ANY
QUESTIONS ?
25
THANK YOU
26