CRYPTOCURRENCY

PRESENTED BY:
Shashi Kumar
Contents
S.No. Topic Slide No.
1 What is Cryptocurrency? 3
2 Conventional vs Digital Currency 4
3 Why use Cryptocurrency? 6
4 Risks 7
5 Types of Cryptocurrency 8
6 Example : Bitcoin 9
7 Bitcoin Technology 11
8 Bitcoin Transaction Process 12
9 Conclusion 13
10 References 14
What is Cryptocurrency?
A cryptocurrency (or crypto currency) is a
digital asset designed to work as a medium of
exchange using cryptography to secure the
transactions and to control the creation of
additional units of the currency.
Conventional vs Digital Currency
Conventional vs Digital Currency
Why use Cryptocurrency?
Risks
•Hackers. Cryptocurrencies are targets for highly sophisticated
hackers, who have been able to breach advanced security systems.
•Fewer protections. If you trust someone else to hold your
cryptocurrencies and something goes wrong, that company may not
offer you the kind of help you expect from a bank or debit or credit
card provider.
•Cost. Cryptocurrencies can cost consumers much more to use than
credit cards or even regular cash, often due to price volatility.
•Scams. Fraudsters are taking advantage of the hype surrounding
virtual currencies to cheat people with fake opportunities.
•Lack of Transparency. The anonymous nature of cryptocurrencies
make transparency and accountability difficult for consumers seeking
to ensure the safety of their investments.
Types of Cryptocurrency
Example : Bitcoin
• Both a cryptocurrency and an electronic payment system
• Satoshi Nakamoto in 2008
• First decentralised payment network
• System is peer-to-peer
• 21 million bitcoins
• Completely Open source
• 1BTC = $1258.48
Example : Bitcoin
Bitcoin Technology
Conclusion
Cryptocurrency is an impressive technical achievement, but it remains a
monetary experiment. Even if cryptocurrencies survive, they may not fully
displace fiat currencies. As I have tried to show in this presentation, they provide
an interesting new perspective from which to view economic questions
surrounding currency governance, the characteristics of money, the political
economy of financial intermediaries, and the nature of currency competition.
References
• https://thefutureofpayments.blog/ (April 20, 2017)
• https://www.youtube.com/watch?v=Gc2en3nHxA4 (April 19, 2017)
• https://en.wikipedia.org/wiki/Cryptocurrency (April 17, 2017)
• Milne, Alistair, Cryptocurrencies from an Austrian Perspective (April 17, 2017). Available at
SSRN: https://ssrn.com/abstract=2946160 or http://dx.doi.org/10.2139/ssrn.2946160
• Reid, F. & Harrigan, M. (2013) An Analysis of Anonymity in the Bitcoin System. Security and
Privacy in Social Networks. Available at: http://link.springer.com/chapter/10.1007/978-1-4614-
41397_10
• Nakamoto, S. 2008. Bitcoin: A Peer-to-Peer Electronic Cash System. bitcoin.org.
https://bitcoin.org/bitcoin.pdf.