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Bitcoin Rough

This document provides an overview of Bitcoin including: - What Bitcoin is and how it works based on blockchain technology and cryptography. - How to purchase Bitcoin through exchanges and wallets. - Advantages like quick transactions but disadvantages like volatility. - Earning Bitcoin through mining or investing. - The legal status of Bitcoin in India is still being defined as the government works to establish regulations.

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Saloni Jain 1820343
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104 views19 pages

Bitcoin Rough

This document provides an overview of Bitcoin including: - What Bitcoin is and how it works based on blockchain technology and cryptography. - How to purchase Bitcoin through exchanges and wallets. - Advantages like quick transactions but disadvantages like volatility. - Earning Bitcoin through mining or investing. - The legal status of Bitcoin in India is still being defined as the government works to establish regulations.

Uploaded by

Saloni Jain 1820343
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BITCOIN-

CRYPTOCURREN
CY
1820343 – Saloni Jain – [email protected]
1820345 – Sanjana Goel– [email protected]
1820346 – Stuti Nagpal – [email protected]
1820347 – Vagisha Singh – [email protected]
1820348 – Vrishali Rautaray – [email protected]
1820349 – Pranavi Vegesana– [email protected]
Topic Prepared By Slide
What is Bitcoin? Stuti Nagpal 3
How does Bitcoin works ? Saloni Jain 5
How does payment works? Saloni Jain 8
What is Bitcoin based on? Pranavi 9
How to Purchase Bitcoin ? Pranavi 11
Advantages and Disadvantages Sanjana 12
How can u earn from Bitcoin? Vrishali 14
Bitcoin / Litecoin Saloni Jain 16
Rules and Regulation Vagisha 17
WHAT IS BITCOIN ?
 Bitcoin is a cryptocurrency , a form of electronic
cash. It is a digital currency without a central block
or  any single administrator that can be sent from
user to user without the need for intermediaries.
 Bitcoin was invented by an unknown person or
group of people using the name Satoshi Nakamoto.
It is a system based on mathematics. The idea was
to produce a currency independent of any central
authority, transferable electronically in an instant
manner with very low transaction fees.
 Transactions are verified by network nodes and recorded in a
public distributed ledger called a block chain.
 Bitcoins are created as a reward for a process known as mining.
They can be exchanged for other currencies, products, and
services. They can be used to buy merchandise anonymously.
 The thing that makes bitcoins different from conventional
money is that it is decentralized. No single institution controls
the bitcoin network. This form of currency isn’t physically
printed.
HOW DOES BITCOIN WORKS?
 Based on the block chain : a growing ledger of cryptographically-signed transactions.
 Bitcoin transactions are stored together in blocks. These blocks are linked to one another in a
series.
 The working can be explained using 3 concepts :
o Cryptography – converting transactions into digital codes
o Demand and Supply

 Supply of BITCOIN is limited , only 21million can be produced.


o Decentralized Networks
BITCOIN WALLET
1454A2geTxaJwF8eqry7oLECdomgDSj6Zx
Public Key ( Address)
34 Characters starting with 1 or 3
Represents a possible destination for payment

5JHkYd4mYkTsCsF5axnFj573PG6tqpeJ39Rz2M33vwBAK4S1hu6
Private Key ( Password)
51Characters starting with 5
TRANSFER OF BITCOIN

Seller enters the buyer’s Seller signs the Seller broadcasts the
Buyer provides address address (public key)and transaction with a private
the amount of the payment transaction to all the
to the seller key and announces the
to a transaction message. Bitcoin network
public key for verification

At this time , the miner


who 1st verifies the After this the data is
As soon as it is verified After verification by the
verified by the miners
the bitcoin is transferred transaction gets miners the transaction is
through mathematical
to the concerned address. rewarded with 12.5 added to the block . process.
Bitcoins .
HOW DOES PAYMENT
WORKS?
 The buyer or seller can trade bitcoin on a exchange or even send or receive bitcoin through it.
 They have to link their bank account to the exchange to receive the payment.
 The bitcoin get converted into the desired currency.
 The exchange charge a fee for its services in return.
WHAT IS BITCOIN BASED ON?
 Bitcoin is based on the Block chain technology.
 A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data
that is managed by cluster of computers not owned by any single entity. Each of these blocks
of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e.
chain)
 The blockchain network has no central authority — it is the very definition of a democratized
system. Since it is a shared and immutable ledger, the information in it is open for anyone and
everyone to see. Hence, anything that is built on the blockchain is by its very nature
transparent and everyone involved is accountable for their actions.
HOW DOES BLOCK CHAIN
WORK?
 A blockchain carries no transaction cost. (An infrastructure cost yes, but no transaction cost.)
The blockchain is a simple yet ingenious way of passing information from A to B in a fully
automated and safe manner.
 One party to a transaction initiates the process by creating a block. This block is verified by
thousands, perhaps millions of computers distributed around the net.
 The verified block is added to a chain, which is stored across the net, creating not just a unique
record, but a unique record with a unique history. Falsifying a single record would mean
falsifying the entire chain in millions of instances. That is virtually impossible.
 Bitcoin uses this model for monetary transactions, but it can be deployed in many others ways.
HOW TO PURCHASE BITCOIN?
Although each step does take some consideration, these are the main points you need to think
over when it comes to making your first Bitcoin purchase:
 Install an offline Bitcoin wallet and set up a strong password to protect it.
 Set up an account on Coinbase (and its trading platform, Coinbase Pro, if you want additional
control).
 Choose your preferred payment method.
 Buy some Bitcoin!
ADVANTAGES OF BITCOIN:
1.IRREVERSIBLE TRANSACTIONS

2.NO PAPERWORK

3.QUICK AND CHEAP TRANSACTIONS

4.IMMUNE TO SEIZURE5.LIMITED SUPPLY

6.PROVIDES ANONYMITY

7.PUSH SYSTEM

8. APPRECIATING VALUE
DISADVANTAGES OF BITCOIN:
1. LACK OF AWARENESS

2. NOT WIDELY ACCEPTED

3. RISK OF VOLATILITY

4. NO BUYER PROTECTION
HOW TO EARN BITCOINS
 Bitcoin mining
 Micro tasks
 Bitcoin derivatives
 Become a blockchain developer
 By playing games
 Crypto trading
 Bitcoin affiliate program
 Bitcoin lending
HOW TO EARN BITCOINS IN
INDIA
 Bitcoin Mining: To start with you can mine bitcoins. For this you need a powerful computer,
smartphone or a dedicated Bitcoin mining machine which has a very high Computing Power.
Mind you that mining a Bitcoin for a single person will probably take years, you should join
some online pools to mine bitcoins. Utilize the combined power of thousands of people to
mine Bitcoin.
 Invest / Trade Bitcoins: One of the ways to earn bitcoins in India is by investing in bitcoins.
Before doing this you need to have Wallets in place. You can use apps like Zebpay, Coinbase,
Unocoin to create free Wallets. You then need to transfer money to this wallet which I turn
will allow you to buy/sell bitcoins.
BASIS BITCOIN LITECOIN
Average Transaction Time 10 Min 2.5 Min

Block Reward 12.5 25

Supply Limit 21 Million 84 Million`

Value (in USD) 8421.75 126.10

Market Cap
LEGAL STATUS, TAX AND
REGULATIONS
 The legal status of bitcoin varies substantially from country to
country and it is still undefined or changing in many of them. While
some countries have explicitly allowed its use and trade, others
have banned or restricted it.
 In India on 28 December, 2013 the deputy governor of the Reserve
bank of India, K.C. Chakarbarty made a statement that the RBI had
no plans to regulate bitcoin.
Finance minister Arun jaitley, in his budget speech on 1 February
2018, stated that India does not recognise them as legal tender.

In early 2018 India's central bank, the RBI announced a ban on the
sale or purchase of crypto currency for entities regulated by RBI.

The supreme court of India has in its ruling pronounced on 25


February 2019 required the government to come up with crypto
currency regulation policies. The matter had been adjourned in the
hearing on 29 march 2019 and has been rescheduled for hearing in
the second week of july 2019.
Crypto currencies are not legal tender in india, and while exchanges
are legal, the government has made it very difficult for them to
operate. Although there is currently a lack of clarity over the tax
status of crypto currencies, the chairman of the central board of
direct taxation has said that anyone making profits from bitcoin will
have to pay taxes on them. Other income tax department sources
have suggested that crypto currency profits should be taxed as capital
gains.

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