Bitcoin

BITCOIN-
CRYPTOCURREN
CY
1820343 – Saloni Jain – jain.saloni@bba.christuniversity.in.
1820345 – Sanjana Goel– sanjana.goel@bba.christuniversity.in
1820346 – Stuti Nagpal – stuti.nagpal@bba.christuniversity.in
1820347 – Vagisha Singh – vagisha.singh@bba.christuniersity.in
1820348 – Pranavi Vegesana– vegesana.pranavi@bba.christuniversity.in
1820349 - Vrishali Rautaray – vrishali.rautaray@bba.christuniversity.in
INDEX
Topic Prepared By Slide
What is Bitcoin? Stuti Nagpal 3
How does Bitcoin work ? Saloni Jain 6
Where to buy or sell Bitcoin? Saloni Jain 8
Transfer of Bitcoin Saloni Jain 9
What is Bitcoin based on? Pranavi 10
How to Purchase Bitcoin ? Pranavi 12
Advantages and Disadvantages Sanjana 13
How can you earn from Bitcoin? Vrishali 15
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 WORK?
 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
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
WHERE TO BUY OR SELL
BITCOIN ?
SEL
BUY
L
ATMs Exchanges
Exchanges P2P
P2P ATMs
Gift Cards
TRANSFER OF BITCOIN
(P2P)
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 .
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:
IRREVERSIBLE TRANSACTIONS
NO PAPERWORK
QUICK AND CHEAP TRANSACTIONS
IMMUNE TO SEIZURE
LOWER TRANSACTION FEES
PROVIDES ANONYMITY
PUSH SYSTEM
DISADVANTAGES OF BITCOIN:
LACK OF AWARENESS
NOT WIDELY ACCEPTED
RISK OF VOLATILITY
NO BUYER PROTECTION
HOW TO EARN BITCOINS?
Bitcoin Bitcoin
Micro tasks
mining derivatives
Become a
By playing Crypto
blockchain
games trading
developer
Bitcoin
Bitcoin
affiliate
lending
program
HOW TO EARN FROM
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.
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 1st 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.
REFERENCES
• https://www.bitdegree.org/tutorials/how-does-bitcoin-work/#
How_Does_Bitcoin_Work_Conclusion
• https://www.bbc.co.uk/newsround/25622442
• Http://blockgeeks.com/guides/what-is-blockchain-technology/
• http://cleartax.in/s/bitcoins-taxes-
• https://cointelegraph.com/bitcoin-for-beginners/how-do-i-sell-bitcoins

Bitcoin

Uploaded by

Copyright:

Available Formats

Bitcoin

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bitcoin

Uploaded by

Copyright:

Available Formats

BITCOIN-

At this time , the miner

QUICK AND CHEAP TRANSACTIONS

LOWER TRANSACTION FEES

NOT WIDELY ACCEPTED

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

You might also like