BITCOIN / BITCOIN CASH (BTC)

By: Devin Peterson CSC 595 - Bitcoin & Blockchain

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
• · SHA256
• · Proof of Work
• · Public Key
• · Private Key

THE CONSENSUS ALGORITHM


PROCESS OF TRANSACTION

Sign


PLATFORMS OF TRADE


MINING AND BOOTSTRAP

• · The Equation
• · The Bootstrap Process
• · The Common Prefix


Bitcoin Core Wallet

File



Transactons



has finished synchronizing with the bitcoin netvork; as detaled below . Ths



Last block time

Progress

Progress increase per hour

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ECONOMICS OF BITCOIN



Quantity

ECONOMICS OF BITCOIN INELASTIC EXPANSION AND SLOW GROWTH

Bitcoin: Supply (S) and Demand (D)



Source: Bloomberg Professional (XBT), Blockchain Info (supply) CME Economic Research Calculations

ECONOMICS OF BITCOIN MINING DIFFICULTY AND PRICE

Bitcoin: Mining Difficulty and Price

1



Source: https: / /blockchain info / charts / market-price?timespan=all and

ECONOMICS OF BITCOIN MARKET REACTIONS

Bitcoin: Cost per Transaction and Price



Cost Per Transaction; 20D Average, Scale Moving Log

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.