Bitcoin  - The Next Currency
                     BITCOIN: THE NEXT CURRENCY?
WHAT IS BITCOIN?
• Bitcoin is a cryptocurrency created by Satoshi Nakamoto, the name given to this virtual 
currency's mysterious creator (or creators) in 2009. 
• Transactions are registered in a blockchain, which displays the past of each unit's 
transactions and is used to illustrate ownership.
Source: www.investopedia.com
HOW BITCOIN IS DIFFERENT?
• Since Bitcoin is not a business, buying a bitcoin is different than buying a stock or bond. 
There are no company balance sheets or Form to check as a result. 
• And unlike trading in conventional currencies, bitcoin is not distributed by a central 
bank or sponsored by a country, so bitcoin does not apply to monetary policy, inflation 
rates, and metrics of economic development etc.
Source: www.investopedia.com
FACTORS AFFECTING PRICE OF  BITCOIN
• Bitcoin prices, in comparison, are affected by the following factors:
– The production of bitcoin and its demand from the industry 
– The cost of a bitcoin being generated through the mining process 
– Rewards offered to Bitcoin miners for checking blockchain transactions 
– The markets in which it trades 
– The internal governance of it
Source: www.investopedia.com
SUPPLY AND DEMAND
• In two distinct forms, the availability of bitcoin is affected. The bitcoin protocol allows 
new bitcoins to be created. 
– As miners process transaction blocks, new bitcoins are added into the market and 
the rate at which fresh coins are introduced is programmed to slow over time. 
– This will generate situations in which bitcoin demand rises at a higher pace than 
supply increases, which can drive the price up. 
Source: www.investopedia.com
COMPETITION
• There are hundreds of other coins competing 
for user interest, though bitcoin may be the 
most well-known cryptocurrency. 
• Although bitcoin is still the dominant market 
capitalization choice, other like ether (ETH), 
XRP, bitcoin cash (BCH), litecoin (LTC) and EOS 
are among its closest rivals.
Source: www.etfguide.com
COST OF PRODUCTION
• While bitcoins are intangible, they are nevertheless manufactured commodities and 
incur a true manufacturing cost with energy usage becoming by far the most significant 
factor. 
• What is special about the development of bitcoins is that the formula of bitcoin only 
enables one block of bitcoins to be identified, on average, once every ten minutes, 
unlike most generated products. 
Source: www.investopedia.com
AVAILABILITY ON CURRENCY EXCHANGES
• Cryptocurrency investors trade cryptocurrencies over Coinbase, GDAX, and other 
exchanges, just as equity investors trade stocks over indices like the NYSE, Nasdaq, and 
the FTSE. 
• These websites allow investors to swap cryptocurrency/currency pairs similar to 
conventional currency exchanges. 
Source: www.investopedia.com
SHOULD YOU INVEST IN BITCOIN?
• The rapid appreciation of bitcoin and other cryptocurrencies is related by many to the 
speculative bubble created in the 17th century in the Netherlands by Tulip mania. 
• Although protecting consumers is generally relevant for regulators, it will possibly take 
years until the global effect of cryptocurrencies is fully felt.
Source: YouTube
IS INVESTING IN BITCOIN RISKY?
• Buying bitcoin brings certain well-known dangers, equivalent to other risky investment: 
the price could drop precipitously and a single instance of online theft or crashing hard 
drive will wipe out your bitcoin stash without any remedy.
Source: www.benzinga.com
IS BITCOIN THE FUTURE?
• Since bitcoin is completely beyond government jurisdiction, it faces more danger than 
coping with government currencies and other groups of money. 
• Classify it in your high-risk high-reward portfolio if you plan to dabble in bitcoin. In the 
short-term, you will reap big gains and lose heavily if the valuation decreases. 
Source: www.benzinga.com