Content

 Evolution of Money
 What is Cryptocurrency and its Types?
 What is the Bitcoin and mechanism of action?
 The feature it's offered.
 Who is the Miners?
 the Creation of Bitcoins.
 cryptocurrency over view (historical view)
 Advantage & Disadvantage.
 Risks facing cryptocurrency.
 How can I invest in Cryptocurrency?
 impact of cryptocurrency in financial market.
• Cryptocurrency is a digital currency in which encryption
techniques are used to regulate the generation of units of
currency and verify the transfer of funds, operating
independently of a central bank
types of crypto
 What is the Bitcoin and mechanism of action?

• it’s a revolutionary technology that • the transaction is broadcast to

enables a new way to send payments
over the internet.
the entire network. After it’s
verified it’s recorded in a public
ledger called the block chain,
which contains a record of every
bitcoin transaction that has
occurred.
 The feature it's offered
• Most currencies are issued by a central authority that controls the money supply. but
Bitcoin is a peer-to-peer system so there is no central authority. instead, bitcoins are
issued to users who help process transactions in the network. This is known as bitcoin
mining.
Who is the Miners?

• Bitcoin miners are specialized computers that do the work required to verify and record transactions in the
block chain. as a reward for their work, the miners earn bitcoin and this is how new bitcoins are released into
circulation. The system is programmed so that only 21 million bitcoins will ever exist and as time goes by the
mining reward decreases.

• The result is a predictable supply that is governed by scarcity making bitcoins somewhat like digital gold.it is
the first currency of the internet and everyone is free to use it. with bitcoins you can send any amount of
money to anyone anywhere in the world as easily as sending an email.
Creation of Bitcoins.

After the Financial Crisis in 2008, people were demanding a currency that would not be controlled by a central
authority. When the people put their trust in a bank, the bank had lost the customers’ money and as a
countermeasure, the Government printed more money, which in turn, reduced the value of money already in
circulation in the country. Since there was no maximum limit placed on the amount of money that could be
printed by the Government, there was always some unpredictability and uncertainty regarding the decrease in
the value of people’s money.
At that time someone using the name Satoshi Nakamoto posted on a cryptography mailing list.
The post contained a link to a white paper in which satoshi proposed a new type of payment system for the
internet.
It described a protocol that used peer-to-peer networking prof of work and public-key cryptography.
 cryptocurrency over view (historical view)
 2008-2009  2011-2013  2018-2019
•Satoshi Nakamoto published a •Then Alticoins came in the •Significant rise in number and
paper that sets the ball rolling on market value of ICOs
cryptocurrency (Bitcoin):Bitcoin- A •First Initial Coin Offering (ICO) •ICO grew significantly
peer-to-peer Electronic Cash Mastercoin (Omni)
System •Launch of Crypto •Bitcoin value reached $ 1000
Currency, Bitcoin in particular  2020-now
•First bitcoin transaction is
initiated when Nakamotos send  2014-2016
•• Crash in the market
Hal Finney, a computer
•First Ether Issued capitalisation
programmer, 10 BTC 2011-2013
•Ethereum ERC 20 •Kick off Security Token Offerings
•Then Alticoins came in the
•First stablecoin USDT Token (STOs) and Initial Exchange
market
Offerings (IEOs) Issuance
•First Initial Coin Offering (ICO)
•Upsurge in Stable Coincs
Mastercoin (Omni
 2017 •Ellon Musk and other Big Names,
pushing the value of the assets
•ICO grew significantly
•Market Capitalisation Peak
.

2008 Beginning
• Crisis.
• The creation of Bitcoin.

2009 .
• the first exchange rate was published listing the value of 1309 bitcoins at one dollar and through the following
year, they continued to trade for fractions of ascent.

2010 the first transaction for tangible goods

• Florida man named Lazlo decided to try using his bitcoins to purchase something. He offered 10000 bitcoins to
anyone who would buy him pizza and a man in London accepted.
 Risks facing cryptocurrency market players
• The lack of a common understanding and global or juristic specific regulatory framework means that governments
Regulatory Risk are unable to monitor or protect users of the cryptocurrencies. This is despite the fact that, the initial attractions
towards cryptocurrencies were their lack of regulation

• The main reason why cryptocurrencies have a lot of excitement is that most investors lack insight on virtual
Cryptocurrency hype risk currencies before investing, and just end up listening to the noise to invest. The cryptocurrency hype in 2017 was one
the many drivers of the fastand-furious market surge, and later leading to panic

• Scamming of potential investors, hacking or theft of data or information, are common themes and risks in the
Security Risk cryptocurrency market since inception in 2009. And with each scandal, the cryptocurrencies’ values are compromised
as well

Volatility Risk • High volatility in the value of the cryptocurrencies is essentially the risk in its unexpected market movements. High
uncertainties brought about by crytos require constant monitoring and regulations.

• Cryptocurrencies have a risk of not being able to sell (or liquidate) an investment quickly at a reasonable price.
Liquidity Risk Liquidity is important for any virtual asset. The forex market is considered the most liquid market in the world. But
even in the forex market, the lack of liquidity of cryptocurrency may be a problem

• The history of cryptocurrency has shown that many different cryptocurrencies are currently in the market. Many are
Disappearing or cease risk introduced regularly, however many of these altcoins have or may disappear from the market for various reasons,
while others continue to flourish

• There is an underreporting in relation to cryptocurrency investment and related activities. This is also due to a lack of
Taxing of profits or gain Risk prescribed regulatory environments. Therefore, as government and authorities are mulling the regulations this is
likely to lead to more tax liabilities for users