Cryptocurrencies
Agenda
• Evolution of Money
• Cryptocurrency
• How does cryptocurrency work
• Benefits of using Cryptocurrencies
• Risks of using Cryptocurrencies
• Companies and Countries Accepting
Cryptocurrencies
Evolution of Money
Barter
• It is a way of exchanging
goods and services.
• From 9000-6000 BC people
would barter goods they
had and used as a unit of
exchange.
Evolution of Money
Shells
• Coastal regions around the
Indian oceans used cowrie
shells in trade as early as
1200 BC.
• At about 1200 BC in China,
shells became the first
medium of exchange.
Metal Money
• In 1100 BC, Chinese people
started using small replicas of
goods cast from bronze,
developed into rounded “Coins”
• Those coins had holes in the
middle, so they could easily carry
around their neck
Evolution of Money
Silver Coins
• In 600 BC the first “official”
coin was minted by king
Alyattes of Lydia (Turkey).
• Greeks and Persians quickly
adopted useful new technique
of metal currency.
• By the end of the 6th century
coinage were common
throughout the region.
Leather
• In 118 BC, Banknotes in the form
of leather money were used in
China.
• They were made out of deer skin.
Evolution of Money
Paper Money
• The fist known paper
banknotes appeared in
China in 9th century.
• The travels of Marco Polo
to China introduced the
idea of paper money to
Europe.
Wampum
• Beads of polished shells strung
in strands, belts, or sashes and
used by North American Indians
as money.
Evolution of Money
Gold
• Gold was officially made the
standard of value in England
in 1816.
• The USA adopted the gold
standard in 1900.
• Excessive printing caused
massive inflation.
Plastic Money
• John Biggins invented “charge-
it” card, the first credit card.
• In 21st century this currency is
widely being used.
Evolution of Money
Digital Currency
• Electronic money is money
which exists only in banking
computer systems and is not
held in any physical form.
• Both virtual currencies and
cryptocurrencies are types of
digital currencies.
Cryptocurrency
• Crypto Currency is a digital asset
designed to work as a medium of
exchange that uses
Cryptography.
• Crypto Currency is produced
digitally, stored digitally and
transferred digitally.
• Fully decentralized.
Cryptocurrency
Cryptography
• Cryptography is the process of hiding or coding information so
that only the person a message was intended for can read it
(protecting data and users, ensuring confidentiality, and
preventing cyber criminals, etc.…).
➢ To secure the transactions.
➢ To control the creation of additional units.
Decentralization
• Decentralized currency, peer-to-
peer money, and digital currency
all refer to bank-free methods of
transferring wealth or ownership
of any other commodity without
needing a third party.
• No single user controls the
network.
Cryptocurrency
Blockchain
• Blockchain technology is a structure that stores transactional records,
also known as the block, of the public in several databases, known as
the “chain,” in a network connected through peer-to-peer nodes.
• In the simplest of terms, a blockchain is a group of computers
that works together to process and record data, ensuring the
authenticity and security of the data transactions.
Cryptocurrency
Cryptocurrencies Mining
• Mining is the process by which a computer solves a complex
math problem in the hopes of uncovering a new crypto coin.
• Crypto currency algorithms are used to mine coins.
• Anyone can mine with their computer’s processor, more
advanced graphic cards and specialized hardware.
Cryptocurrency
Major of Cryptocurrencies
Bitcoin (BTC) – Launched in
2009
Litecoin (LTC) – launched in
2011
Ethereum (ETH) – Launched
in 2015
Dash (DASH) – Launched in
2014
Ripple (XRP) – Launched in
2012
Monero (XMR) – Launched
in 2014
Cryptocurrency
Bitcoin - BTC
✓ Bitcoin is a crypto currency and worldwide
payment system.
✓ It was first created in 2009 by a person name
“Satoshi Nakamoto”
✓ It is the first decentralized digital currency.
✓ Peer-to-peer technology and no central authority
or banks are intermediately.
✓ Open-Source, design in public, no body owns
controls of Bitcoin.
✓ 21 million Bitcoins will be created or mined until
year 2140 hence it is protected from inflation.
✓ Each unit of Bitcoin is called Satoshi
Currency Wallet
• It is a secure digital wallet.
• It is used to store, send and receive digital
currency like Bitcoin.
• Most coins have an official wallet.
• E-wallet use private and public keys
(Cryptography) to secure and transfer the
coins.
• Crypto currency are traded by sending from
your wallet to the “address” of the
recipient’s wallet or by scanning a QR Code
that corresponds to the recipient’s wallet.
Converting to Normal Currency
• You can send your crypto currency from your wallet to the
exchange, convert it to whatever currency you desire (USD, EUR,
etc.…).
• You can send it to your bank account.
Benefits of using Cryptocurrencies
✓ Fast and Cheap
✓ Ease of Use
✓ Untraceable
✓ Decentralized Nature
Risks of using Cryptocurrencies
✓ Hackers
✓ Cost
✓ Still Developing
✓ Money Laundering
✓ Purchaing of Illegal Goods
✓ Supproting Criminal Activities
✓ Lack of Awarness and Understanding
Countries Accepting Bitcoins
Companies Accepting Bitcoins
Questions
Cryptocurrency
How does cryptocurrency work?
• Cryptocurrencies are supported by a technology known as
blockchain, which maintains a tamper-resistant record of
transactions and keeps track of who owns what. The use of
blockchains addressed a problem faced by previous efforts to
create purely digital currencies: preventing people from making
copies of their holdings and attempting to spend it twice.
How are cryptocurrencies created?
• One common way cryptocurrencies are created is through a process
known as mining, which is used by Bitcoin. Bitcoin mining can be an
energy-intensive process in which computers solve complex puzzles
in order to verify the authenticity of transactions on the network. As
a reward, the owners of those computers can receive newly created
cryptocurrency. Other cryptocurrencies use different methods to
create and distribute tokens, and many have a significantly lighter
environmental impact.
