CRYPTOCURRENCY

AND BITCOIN

SUBMITTED BY
AQSA FATIMA RAZZAQ
RIMSHA RIAZ
• Introduction to cryptocurrency and bitcoin
• Timeline of cryptocurrency
• Working of Bitcoin
• Infrastructure of bitcoin
• Places where bitcoin used
• Stores which accept bitcoin
• Working of bitcoin transaction
• Types of cryptocurrency
• Advantages of cryptocurrency
• Disadvantages of cryptocurrency
• Bitcoin Scams
• Avoiding bitcoin scams
• Investing bitcoin in Pakistan
• Future predictions
 Introduction to cryptocurrency
• Cryptocurrency is simply a digital currency.
• It is created and used by individual for the purpose of
exchanging digital information.
• Cryptocurrency are currently being more and more
accepted as a payment for services , goods , and
repayment for debts.
• It is a digital currency in which cryptography
techniques are used.
• Cryptography is basically an art of solving codes.
• The first currency created was Bitcoin in 2009.
 Introduction to Bitcoin
• Bitcoin is a decentralized digital currency that enable
instant payments to anyone and anywhere in the
world.
• Bitcoin use peer to peer technology.
• It is a paving way for a future cashless society.
• It gain legal recognition in Japan in April 1.
History of Cryptocurrency
Laid
cryptocurrenc
y foundation
in 1980

In 1980 David
Chaum
invented
‘blinding
algorithm’

In late
1980s’,Digic
ash ‘founded
a company.

Wei Dai
published a
white paper
on b-
money.
History of Bitcoin

In JAN
In AUG 2007
2008 Satoshi
In 2009 it Nakamoto
was Bitcoin.or
In late g start work
2010 released on
By NOV to the registered
similar Bitcoin.
In JAN 2010 public.
Bitcoin currencies
In MAR 2011 Silk began to
road reaches
2013 $1million. appear.
Bitcoin began
market operating.
capitalizat
ion
reaches $1
Billion
Working of bitcoin
• When using Bitcoin first install Bitcoin wallet on your
computer to generate bitcoin address.
• Following are the basics how Bitcoin work:
 Balances(Blockchain)
 Transactions(private keys)
 Processing(mining)
 Peer/Node Infrastructure
P2P protocol

Wallet Wallet protocol Miner

Wallet protocol

User Interface
Places where Bitcoin used
• Online e commerce site
 Microsoft
 Dell
 Newegg
 Show roomprive
 Tiger direct
 Air lituancia
 Cheap air.com
Physical stores that accept Bitcoin
• Reeds Jewelers
• CeX
• Sacramento Kings NBA franchise
• San Jose Earthquakes, a soccer club
Working of Bitcoin transaction
Sending bitcoin requires having access to the public and private keys
associated with that amount of bitcoin.
• Pair of keys comprised of:
A public key to which some amount bitcoin was previously sent
The unique private key which authorizes the BTC previously sent to
the above pub-key to be sent elsewhere.
 Types of Cryptocurrency

Namecoin: Litecoin: Peercoin Primecoin:

Ripple Market
Market cap: Market cap: :Market cap: Market cap:
cap: $1.4
$26.9 million $353.3 $71.3 million $7.1 million
billion Price:
Price: $3.30 million Price: Price: $3.37 Price: $1.55
$0.014 Year
Year created: $13.53Year Year created: Year created:
created: 2013
2011 created: 2011 2012 2013
Advantages of Cryptocurrency
• Fraud
• Immediate settlement
• Lower fees
• Identify theft
• Access to everyone
• Recognition at universal level
Disadvantages of Cryptocurrency
• Lack of security
• Increased Regulation
• Limited Scaling
• Lack of Application
Bitcoin scams:
• Bitcoin Ponzi Schemes and High Yield Investment Programs
• Bitcoin Mining Investment Scams
• Bitcoin Wallet Scams
• Bitcoin Exchange Scams
• Bitcoin Phishing Scams
Avoiding Bitcoin Scams
• It is important to investigate the background of the bitcoin related company
you are thinking of transacting with.
• Publicly available audits can assuage doubt over whether a company is able to
deliver what it promises.
• Proof of reserves cryptographic audits enable companies to publicly disclose
their bitcoin holdings.
• Established forums like Reddit can help provide a balanced perspective on
the legitimacy of a company.
Investing Bitcoin in Pakistan
• UrduBit
UrduBit is a bitcoin exchange that is fully functional
bitcoins market place for buy and sell bitcoin.

• Local Bitcoins.com
LocalBitcoins.com works like a classified website. You
can find all the people who are selling bitcoins in Pakistan.

• OLX, bitcointalk.org
You can also find sellers on OLX.com.pk and bitcointalk.org
and many other websites on the Internet where people are
selling bitcoins at price and payment method of your choice.
Future predictions

• Cryptocurrency is making its way to legislation.

• The future of cryptocurrency suggests growth but at a slower
rate.
• It is gaining popularity worldwide and soon will be replacing
the paper money.
Facts about Bitcoin
• The first Bitcoin purchase was for Pizza.
• Bitcoin is untraceable and Bitcoin is not untraceable.
• If you lose your Bitcoin key you will lose all your
Bitcoins.
• There will ever be only 21 Million bitcoins.
References
 https://bitcoin.org/en/how-it-works
 https://thenextweb.com/insider/2015/03/29/a-brief-history-of-bitcoin-and-where-its-going-next/
 https://www.moneycrashers.com/cryptocurrency-history-bitcoin-alternatives/
 https://en.bitcoin.it/wiki/Infrastructure
 https://www.coindesk.com/information/what-can-you-buy-with-bitcoins/
 https://www.investopedia.com/articles/forex/041515/countries-where-bitcoin-legal-illegal.asp
 https://www.coindesk.com/information/how-do-bitcoin-transactions-work/
 http://www.bankrate.com/investing/12-cryptocurrency-alternatives-to-bitcoin/#slide=13
 http://www.thebusinessofbitcoin.com/2014/01/the-nature-of-bitcoin.html