By :

Mahesh Inder
1509010106
 HISTORY OF
MONEY

Five major changes :

• Barter exchange
• Abstraction of value in form of Shells, feathers, beads, nuts and stones
• Precious metals
• Paper money
• Plastic money
• Network money.
 INTERNET AND
MONEY

Today’s scenario of payments :

• systems of money for small payments
• systems of money for large payments.
• systems of money for payments between individuals
• systems of money for payments between companies,
• systems of money for payments between governments.
Internet of Money :
• It creates a single network which can do a micro transaction to a giga transaction, in seconds
anywhere in the world for any participant without permission.
• First ‘decentralized’ digital currency. They are digital coins you can
send through the internet.
• No one controls it. Bitcoins aren’t printed, like rupee or dollars –
they’re produced by people, and increasingly businesses, running
computers all around the world, using software that solves
mathematical problems.
• The internet of money was launched on January 3rd, 2009. It’s coming. It’s
coming faster than you can imagine. It’s more sophisticated than you can
immediately understand. It takes years of study just to see all of the
implications, and it is a gift to the entire world, a technology that
represents the 6th greatest innovation in the technology of money, the
most ancient technology of our civilization.
 BANKING AND MONEY
CHANGED IN FIVE MINUTES
Currently, we use FI ATMoney.
Trust the banks and central authorities with our money. Theyhave
complete control over it as to what amount of money needs to be
printed and circulated.
These central authorities are the regulating bodies to whom we
have given complete control of our money!
Bitcoin is the way by which we can take that back power and
control of our own money and we can transact in a better way.
It provides us with a currency and a payment network thatwe can
control ourselves and we don’t have to rely on any single entity to
create or help us to transact.
Every single child born today will never have a bank account.
 CHARACTERISTICS
It's decentralized.

It's easy to set up – set up a bitcoin wallet and you are good to go !
It's completely transparent - stored in public ledger knownas
blockchain.

Transaction fees are miniscule

It’s fast and secure.

It’s Permission less,

 WHO PRINTS IT ?

No one. This currency isn’t physically printed in the shadows byany

bank. Instead, bitcoin is created digitally, by a community of people
that anyone can join. They are ‘mined’, using computing power in a
distributed network. And those who do this job are knownas
‘miners’.

Bitcoin is based on hashing. Around the world, people areusing

software programs that follow sha-256 algorithm to produce
bitcoins. The software used to mine it is open source, meaning that
anyone can look at it to make sure that it does what it is supposed
to.
HOW MANY BITCOINS?

The supply of bitcoin is determined algorithmically based on a geometrically declining supply

function:
• In the beginning, every 10 minutes, 50 new bitcoin are created. So every block, the heart beats
10 minutes created 50 new bitcoin.
• Every 4 years, it gets cut in half. 50 to 25 in November of 2012. And in the year 2016 in July,
we had our second halving event, which was celebrated with birthday parties all over the
world, and bitcoin’s reward went from 25 to 12.5 bitcoin.
• In the year 2141, bitcoin is no longer issued. 21 million coins is the asymptotic cap. It will
never reach 21 million coins. That is part of the protocol, it is an unchangeable part of the
protocol and it is a rule enforced by every system that participates in the bitcoin network.
COMPONENT TECHNOLOGIES IN BITCOIN

• Use of cryptographic hash functions, particularly

sha-256.

• Proof of Work : In 1997, Adam used sha 256 to

create an anti spam system called hash cache.

• Satoshi combined both of these technologies to a

peer to peer network similar to Bit torrent.
 BITCOIN IS LEGAL

contentious

permissive
contentious

hostile
 BITCOIN AND ALT COINS

• The building blocks of this platform and use them to construct other languages that
communicate value.
• Today there are over 1,000 digital currencies using the design pattern, the recipe of
bitcoin. Most of them are junk, some of them are not and over the next decade we are
going to see tens of thousands and then hundreds of thousands of coins.
• The controlling key for a car that can be transferred from one owner to another, and five
seconds later that owner can step into the car and drive away, because the car can
validate the new standard of ownership. We cannot yet imagine what applications we’re
going to build around this.
• Bitcoin isn’t money. The blockchain isn’t a system of currency. It
is a platform of trust.

• Do not underestimate this. Do not listen to the people who tell

you that bitcoin is just for pornographers, terrorist, drug dealers
and gamblers. Remember that they said the exact same thing
about the internet.
The internet of money was launched on January 3rd,
2009. It’s coming. It’s coming faster than you can
imagine. It’s deeper than you can fathom. It’s more
sophisticated than you can immediately understand.
It is a gift to the entire world, a technology that
represents the 6th greatest innovation in the
technology of money, the most ancient technology of
our civilization.
THANK YOU