? PresentedBy:-Anjana SagathiyaRoll 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 thataccept bitcoin as payment, but it differs in several key ways fromtraditional currencies.• In Bitcoin,Transactions are made with no middle men – meaning, nobanks!• It is a form of digital currency (physical form is absent), created and heldelectronically.• There is many digital currency like ripple,etherum,litecoin etc,but Bitcoinis more used. Why is Bitcoin created?• Bitcoin is decentralised virtual currency that provides secure globaltransactions 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 likeinterferences of multiple bank,transected only business hours,additionalfees 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,andtransaction 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 howBitcoin would operate.
• On August 18, 2008, an unknown person or entity registered theBitcoin.org domain.• On January 8th, 2009, the first version of Bitcoin is announced, andshortly thereafter, Bitcoin mining begins.• It described a sytem of cryptocurrency that was not backed by anygovernment 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 theycan and hold them price appreciation.• If 21 million Bitcoins are in circulation and current price is $500, thentotal market value is ~$10 Billion. How does Bitcoin work?• A transaction is a transfer of value between Bitcoin walletsthat getsincluded 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 thatthey have come from the owner of the wallet.• The signature also prevents the transaction from being altered by anybodyonce it has been issued.• All transactions are broadcast to the network and usually begin to beconfirmed within 10-20 minutes, through a process called mining. • Bitcoin technology is worked on Blockchain technology.• Blockchain technology is combination of three technology1) private key cryptography2) a distributed network witha shared ledger3) an incentive to service the network’stransactions,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 technologyis to create a secure digital identity reference.• Identity is based on possession of a combination of private andpublic cryptographic keys.• The combination of these keys can be seen as a dexterous formof 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 digitalrelationships.
While authentication is solved, it must be combined with ameans 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 networkwhere 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 solarge and has amassed so much computing power.• When cryptographic keys are combined with this network, a super usefulform of digital interactions emerges. • The process begins with A taking their private key, making anannouncement of some sort — in the case of bitcoin, that you are sendinga sum of the cryptocurrency — and attach it to B’s public key. INCENTIVE SERVICE• This technology is very insentive serivce for transaction ,record keepingand 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