intro to bitcoin

BITCOIN

Founded: 2009

Satoshi Nakamoto中本哲史Identity: Unknown

What is a Bitcoin?Decentralized Virtual Currency

Digital Asset

Denominated

Publicly Traded

Distributed Ledger(Block Chain)

How does it work?

Currency Units(Denominations)

Millibitcoin - mBTC10-3 : 0.001

Microbitcoin - µBTC10-6 : 0.000001

Satoshi10-8 : 0.00000001

ISO-4217 code (BTC, XBT)

How does it work?

Digitally Signed

Private key must be validated by apublic key, orthe coins are

effectively lost.

In 2013, one user reported losing 7,500 bitcoins,

worth $7.5 million USD at the time.*

Ownership

Digitally Signed

Multiple PaymentsURI, QR Codes, IANA supported

Buyer pays transaction fees

Transactions

The CoinbaseSpecial Transaction

25 Bitcoins per blockuntil next halving in

2016

Supply

Record Keeping ServiceBlock Chain Integrity

Proof-of-work system (nonce)

Mining

Mining Difficulty

PaperWallets

ElectrumWallets

TrezorWallets

The AddressUsers can have many addresses

Enables transfer offunds without revealing

personal info

Can be generated onlineor offline*

Privacy

ClassificationEconomics

Classification“Currency”

“Stock”“Commodity”“Collectible”

“Money-likeInformationalCommodity”

Economics

Intrinsic Value“The intrinsic value of gold

is its intrinsic value.”

Economics

Benefits

Privacy

Low Fees

Redundancy

Benefits & Risks

Risks

Volatility

Refunds dependon vendor

No liabilityprotection

Benefits & Risks

Bigger than BitcoinBlock-chain based finance

Transparency

Decentralizationor

Regulation

The Future

ANY QUESTIONS?