Digital currency, Bitcoins
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This document discusses digital currency and bitcoin. It defines digital currencies as electronic money used as an alternative to government-backed currency for real transactions. Bitcoin is described as a decentralized, anonymous cryptocurrency created via peer-to-peer networks. Statistics show bitcoins growing in market value and use for various goods and services online. The concept of bitcoin relies on public but anonymous transactions recorded in a blockchain through a process of mining that rewards miners with new bitcoins or fees.
Digital currency, Bitcoins
- 1. DIGITAL CURRENCY, BITCOIN R E T H O R I C S K I L L S P R E S E N T A T I O N F E S S E H A T S E G A Y E M A M O H O C H S H U L E O F F E N B U R G A P R I L 2 0 1 3
- 2. CONTENTS • Money and Digital Currency • Cryptocurrency • Bitcoin  Concept  Statistics and market vlaue  What can you do with bitcoins?
- 3. MONEY AND DIGITAL CURRENCY • Electronic money that acts as alternative currency • They are not produced by government-endorsed banks • Unlike virtual money they are used in transactions of real goods and services
- 5. CRYPTOCURRENCY • Holder has ownership • No other records kept as to identity of owner • Easy to keep anonymous http://en.wikipedia.org/wiki/Digital_currency
- 6. CRYPTOCURRENCY ... • Hard or impossible to replace if lost or stolen • Derives trust from mathematical properties • Based on established, trusted cryptographic primitives http://en.wikipedia.org/wiki/Digital_currency
- 7. BITCOIN • Decentralized • Anonymous • Created via peer-to-peer networks • Concept created by „Satoshi Nakamoto“
- 8. BITCOIN CONCEPT • Public but anonymous transactions • Based on block chaining of cryptographically- signed transactions • Miners – secure the system
- 9. BITCOIN CONCEPT ... • Miners are awarded bitcoins or transaction fees for successfully finding blocks • ~21million bitcoins https://en.bitcoin.it/wiki/File:Total_bitcoins_over_time_graph.png
- 13. WHAT CAN YOU DO WITH BITCOINS? • Snacks • Vitamins and supplements • Website hosting • A sports car! http://blockchain.info/charts/
- 15. Traveling the Silk Road: A measurement analysis of a large anonymous online marketplace