BITCOINS

By- Balaji Palanichamy

DIGITAL CURRENCY: Its nothing but the currency
which is in digital form.

VIRTUAL CURRENCY: Has typically referred to
online only currencies that do not live outside
the Internet and can only be exchanged on the
Internet.

CRYPTO CURRENCY: Currency that are control
by cryptography i.e. creation and transaction.
The term Cryptocurrency was introduce by w.
Dei at 1998 in his paper called b-money
Bitcoin:
Bit coins represents nothing but only in number.
Bitcoin is a consensus network that enables a
new payment system and a completely digital
money.

It is the first decentralized p2p payment network
that is powered by its users with no central
authority or middlemen like pay pal etc..

Satoshi Nakamoto introduced Bit coin -first crypto
currency in 2009 .

WORKING METHODOLOGY
The application (bitcoin wallet) was
designed to generate 21 million BTC only
(bit coin protocol).

Bitcoin is works in peer-to-peer system
network i.e. the client also works as server .

Cryptographic SHA 256- secured hash
algorithm which is designed by U.S. National
Security Agency (NSA).









Bitcoin where acquired by three way.

Receive from online by a sender.

Exchange with the currency.

Bitcoin mining

every single purchase transaction is log digitally is
called block chain. The people who constantly
fixing the block chain are called as miners and
this process is called as bitcoin mining.



VALUES AND TRANSACTION
The value of 1 BTC vs.
Dollar.
Since there is no
central authority fix
value of a bitcoin. But
the users determine its
price or value.
Lowest denomination
of rupees is paisa i.e.
0.01 rupee like wise
Bitcoin its 1 satoshi
0.00000001 .
TRANSACTION
Bitcoin transaction had carried out through bitcoin
wallet either by computer or smart phone.
To receive the bitcoin we have to create new address
every time.

ADVANTAGES OF BITCOIN
Payment freedom

Very low fees

Fewer risk for merchants

Security and control



DISADVANTAGES

Degree of acceptance

Volatility

Ongoing development

Anonymity

BITCOIN IN INDIA
Bitcoins alliance India (BAI) examine the legality in
India and released a white paper.
Its states that bitcoin usage is not illegal when
transaction are intra-India.
In some situation dealing in bit coin will be illegal
when it violates foreign exchange management act
(FEMA)
It is taxable (service tax) when sold it for in terms of
money.
Capital gain tax is also applicable (for-ex).

BIBLIOGRAPHY
bitcoin protocol by satoshi Nakamoto 2008
b-money by W.Dei in 1998
Bitcoin Explained in laymans term Raghu Kumar.
Bitcoins per se are not illegal in India by Lalatendu
Mishra.
Bitcoins : missing the real revolution by
Vasudevan Mukunth
THANK YOU
.