Bitcoin Presentation
AI Summary
Key Insights
- Bitcoin was founded as a decentralized cryptocurrency without the need for central banks or intermediaries and was accepted by over 1,000 industries worldwide by 2012.
- The consensus algorithm, utilizing SHA256, Proof of Work, Public Key, and Private Key, plays a crucial role in Bitcoin's operation.
- The process of transaction involves key elements such as public and private keys, hashes, and signatures.
- Mining and bootstrap processes involve equations, the bootstrap process, and the common prefix.
- Due to volatile price that cannot compete with high transaction costs, Bitcoin unlikely to replace fiat currencies.
Bitcoin Presentation
- 1. BITCOIN / BITCOIN CASH (BTC) By: Devin Peterson CSC 595 – Bitcoin & Blockchain
- 2. THE FOUNDATION • Founded as a decentralized cryptocurrency without the need of central banks or intermediaries. • 2012 - Over 1,000 worldwide industries accepted BTC. • 2014 – Mt. Gox (744K) • 2017 – Nearly $20,000 • The brilliance behind BTC • The Blockchain
- 3. THE CONSENSUS ALGORITHM • SHA256 • Proof of Work • Public Key • Private Key
- 4. PROCESS OF TRANSACTION
- 5. PLATFORMS OF TRADE
- 6. MINING AND BOOTSTRAP • The Equation • The Bootstrap Process • The Common Prefix
- 7. ECONOMICS OF BITCOIN
- 8. ECONOMICS OF BITCOIN INELASTIC EXPANSION AND SLOW GROWTH
- 9. ECONOMICS OF BITCOIN MINING DIFFICULTY AND PRICE
- 10. ECONOMICS OF BITCOIN MARKET REACTIONS
- 11. Common Question - "Will bitcoin replace fiat currencies?" Most likely no, because the too volatile price cannot compete as a store value currency in the long run considering the high transactions costs. Moreover, an ideal replacement for an existing fiat currency that will economically function as a proper rate of exchange will lose its appreciation slowly over time, which is not the excitable Bitcoin, or its alternatives.