Bitcoin is Differs from Fiat Digital Currencies - PowerPoint PPT Presentation

About This Presentation

Bitcoin is Differs from Fiat Digital Currencies


Bitcoin can be used to pay for things electronically if both parties are willing. But it differs from fiat Digital Currencies in Several Important Ways: 1. Decentralization 2. Limited Supply 3. Pseudonymity 4. Immutability 5. Divisibility – PowerPoint PPT presentation

Number of Views:47
Slides: 17
Provided by: blogscrypto


Transcript and Presenter's Notes

Title: Bitcoin is Differs from Fiat Digital Currencies

Bitcoin is Differs from Fiat Digital Currencies
  1. Bitcoin
  2. Decentralization
  3. Limited Supply
  4. Pseudonymity
  5. Immutability
  6. Divisibility

  • Bitcoin can be used to pay for things
    electronically if both parties are willing.
  • In this sense, it's like current dollars, Euros,
    or yen, which are also traded digitally.
  • But it differs from fiat Digital Currencies in
    Several Important Ways

(No Transcript)
1. Decentralization
  • Bitcoin's is the most important characteristic is
    that it is decentralized.
  • No single institution controls the bitcoin
  • It is managed by a group of volunteer coders and
    run by an open network of dedicated computers
    spread around the world.
  • It attracts the individuals and groups that are
    uncomfortable with the control that banks or
    government institutions have over the money.

  • Bitcoin solves the "double spending problem" of
    electronic currencies through an ingenious
    combination of cryptography and economic
  • In electronic fiat currencies, this function is
    fulfilled by banks, which gives them control over
    the traditional system.
  • The integrity of the transactions is managed by a
    distributed and open network, owned by no-one.

2. Limited Supply
  • Fiat Currencies have an unlimited supply Central
    banks can issue as many as they want and can
    attempt to manipulate a currency value relative
    to others.
  • Holders of the currency bear the cost.
  • On the other hand, supply is tightly controlled
    by the underlying algorithm.

  • A small number of new bitcoins trickle out every
    hour and continue to do so at a diminishing rate
    till a maximum of 21 million has been reached.
  • It makes bitcoin more attractive as an asset - in
    theory if demand grows and the supply remains the
    same, the value will increase.

3. Pseudonymity
  • While senders of traditional electronic payments
    are identified, users of bitcoin, in theory,
    operate in semi-anonymity.
  • Since there is no any central validator, users do
    not need to identify themselves when sending
    bitcoin to another user.
  • When the transaction request is submitted, the
    protocol checks all the previous transactions to
    verify that the sender has the necessary bitcoin
    as well as the right to send them.

  • The system does not need to know his/her
  • In practice, each user is identified by the
    address of his/her wallet.
  • Transactions can be tracked in this way.
  • Also, law enforcement has developed methods to
    identify the users if necessary.

  • Furthermore, the most exchange is required by law
    to perform identity checks on their customers
    before they are allowed to buy or sell bitcoin,
    promoting another way that the bitcoin usage can
    be tracked.
  • Since the network is transparent, the progress of
    a particular transaction is visible to all.
  • It makes bitcoin not an ideal currency for the
    criminals, terrorists or money-launderers.

(No Transcript)
4. Immutability
  • Bitcoin transactions cannot be reversed, unlike
    the electronic fiat transactions.
  • If a transaction is recorded on a network, and if
    more than an hour has passed, it is impossible to
    modify it.
  • While it may disquiet some, it does mean that any
    transaction on the bitcoin network cannot be
    tampered with.

5. Divisibility
  • The smallest unit of a bitcoin is called a
    satoshi. That is one hundred millionth of a
    bitcoin (0.00000001) - at today's prices, about
    one-hundredth of a cent.
  • It could conceivably enable microtransactions
    that traditional electronic money cannot.

  • Click on Below Link Bitcoin and Blockchain
    Technology Explained
  • https//
  • Click on Below Link How to Earn one Bitcoin a
    day Free
  • https//

Thank You
Write a Comment
User Comments (0)