Bitcoin: The Future of Currency?

Is Bitcoin the future of currency? BI bitcoin WITH ALL THE BUZZ, FEW KNOW MUCH ABOUT BITCOIN OR THE POTENTIALLY MASSIVE IMPACTS THIS CRYPTO-CURRENCY HOLDS It's a decentralized, global, peer-to-peer, digital, online, currency. DECENTRALIZED = No single entity / everybody owns or controls Bitcoin GLOBAL = Anyone can use it, anywhere PEER TO PEER = Direct transfers, no 3rd parties necessary DIGITAL = No physical "coinage" ONLINE = Only requirement for use is an internet connection EXAMPLE Bitcoin = The System "You know, Bitcoin is nothing like traditional currency." Lingo $600 1 BTC = 1 bitcoin bitcoin BTC "Uppercase B" $6.00 0.01 BTC = 1 centibitcoin bitcent сВтC $0.60 0.001 BTC = 1 millibitcoin mbit, millibit, or bitmill "Lowercase B" MBTC bitcoin = The currency "I bought a new car with 20 bitcoins." $0.0006 0.000 001 BTC = 1 microbitcoin PBTC ubit, microbit Using Bitcoin "This-is-my super-secret-pass word-for-bitcoin" 1PHVXXUZ FtXCVp2yit9M5 caFxFjCUL4jux A UNIQUE IDENTIFIER OF 27-34 alphanumeric characters, beginning with the number 1 or 3. FOR YOU ONLY!!!! Never share this, or lose it, because if you do your bitcoin will be lost. Download a Bitcoin Wallet On your PC or Mobile Device Generates addresses to exchange BTC (like an email address) Each wallet has a private key (acts like a signature) The Bitcoin Wallet allows you to use Bitcoin Ôn your PC or Mobile Device • Online purchases from vendors who accept bitcoin • Face to Face purchases via Mobile and QR codes Scan Vendor's Wallet QR code, enter agreed amount, done • ATMS Scan a user's palm print, face, and government-issued ID to verify identity 326 162 04 A69 736 66 or CC BY 2.0 0 Konrad Förstner Get bitcoin by depositing local currency Sell bitcoin and withdraw local cash CC BY 2.0 @ Jesus Solana Get bitcoins Accept bitcoin Exchanges as payment for goods or services buy bitcoins with traditional currency Online exchanges Bitcoin ATMS Mine bitcoins Anyone with a connected computer can be a Miner • Miners volunteer necessary computer power for security and transaction verification free "Bitcoin Miner" app (run by the app) • Rewards for Miners 1. Small voluntary "thank you" transaction fees paid in bitcoin 2. Blocks of bitcoins are "Mined" or released from the 21,000,000 total bitcoins approximately every 10 minutes A block currently yields More computer power donated = more chances to get the released Bitcoin block (like a raffle) Today there are over 25 BTC 12,450,000+ but the block yield halves over time. bitcoins in circulation. THAT'S 59% OF TOTAL BITCOINS The last Bitcoin block will be released near the year 2040 Keep an eye on the value Bitcoin is very new and extremely volatile 1,400 Over the past year 1 bitcoin 1,200 1,000 value ranged from between $68 & $1,151 800 600 400 200 06.13 07.13 08.13 09.13 10.13 11.13 12.13 01.14 02.14 03.14 04.14 05.14 06.14 LIKE MOST CURRENCIES, BITCOIN'S VALUE IS BACKED ONLY BY SUPPLY AND DEMAND, NOTHING PHYSICAL. Value is a combination of • Strength of economy • Risk of economy changing • Number of notes in circulation WASHINGTON A common misconception: the US dollar is backed by gold – however, it hasn't been backed by anything since 1971. Bitcoin has no official value • Buyers and sellers must agree on price • Usually based around value of recent trades elsewhere B B Why people do like it Why people don't like it No country controls Bitcoin Massive security risks • A global online currency can be set up, accessed, and used anywhere with no prerequisites Especially good for emerging markets where banks, ATMS, and credit card machines are rare • Without countries, banks, or companies Bitcoin security is the responsibility of the individual • No 3rd parties No insurance to replace your money No police to find your culprit • Accounts cannot be frozen for any reason No country or company can own or regulate P2P bitcoin use • If a thief dupes you or a hacker accesses your bitcoin wallet payment cannot be stopped or refunded without recipient's consent • More bitcoins cannot be printed, controlling inflation • Value is not tied to a country's political security or trustworthines No banks or companies Bitcoin Exchanges aren't banks • Less fees Credit Card companies charge sellers 2-3% Financial Services like Western Union charge approx. $7 for every $100 sent to Mexico from the ÜS Poloniex Exchange lost $50,000 USD worth of bitcoin Bank fees are outrageous checking accounts, ATMS, minimum balance, overdraft, traveling to another country etc. Flexcoin Exchange lost $600,000 USD worth of bitcoin Most Bitcoin transactions are processed without fee Voluntary fees automatically put higher priority for miners to process. (Faster transaction verification) Mt Gox Exchange lost $367 million USD worth of bitcoin Losses due to lack of regulation Usability Unusable • Nearly instant Direct P2P takes minutes to set up Takes computers minutes to verify • Not accepted Bitcoin is not accepted many places, especially in physical shops. • Easy to carry $1 billion worth of Bitcoin fits in your pocket encrypted onto a memory stick • No measure of trustworthiness or accountability • Credit Cards are faster, free for consumers, and more available in developed countries Moving $1 billion of gold, bills, or wampum is not easy Anonymous Criminal currency Bitcoin's anonymity has attracted criminals seeking quick untraceable riches Silk Road: an online blackmarket used Bitcoin to generate $1.3 billion in anonymous trafficking of drugs and firearms plus employing hackers and assassins. • Accounts are anonymous (when used correctly) Added security from hackers and thieves Equal playing field, no special treatment for rich or punishment for poor In the future, virtual currency exchanges like Bitcoin will benefit from implementing Know Your Customer (KYC) policies modeled after reputable exchanges Why? Because it bolsters a safe and trust-driven environment. FUTURE PROJECTIONS FOR BITCOIN "Bitcoin today is at the level where the Internet was in 1994 or 1995, with 20 years of application in its future" Antonis Polemitis, Bitcoin venture capitalist Presented by security mobile paymentstoday JUMIO mtgox.com bitcoin.org/en bitcoinatm.com historyofbitcoin.org coindesk.com/information/why-use-bitcoin cs.stanford.edu/people/eroberts/courses/cs181/projects/2010-11/DigitalCurrencies/advantages/index.html *. BISON .com Open