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Crypto-currency

The revolution that is even greater


than the internet!
WHAT IS CRYPTO-CURRENCY?
What is crypto-currency?
• It is a digital currency with no physical form.
• Can be serve as an alternative for currency
(local currencies of each country).
• Crypto-currency uses cryptography technology
to secure the transaction and control the
creation of addition units.
• No counterfeit in crypto-currency due to this
security feature.
Crypto-Currency
verse Traditional-Currency
Tradition Currency Crypto-Currency

Supply of currency By central banking system, Define by the system when it is


Government created, publicly known.

Integrity of ledgers Maintained by organization Maintained by a community of


mutually distrust parties 
miners
Processing Speed Days due the middleman Minutes (peer-to-peer)
(banks, clearing house, visa,
etc)
Cost High Low

System Centralized De-centralized


Benefits of Crypto-currency
• Much lower cost
• No intermediary trusted involved, no process fee for wire-
transfer
• Faster
• Minutes to completed a transaction compare to days/weeks
• High Security
• Near impossible for hacker to hack a distributed-distrusted-
network.
• Ownership
• Crypto-currency is not controlled by central bank
• No one can “freeze” or “take” your money
CRYPTO-CURRENCIES IN THE
MARKET
What are the crypto-currencies and
release dates in the market?
Release Status Currency Symbol Founder Notes
2015 Active Decred DCR Created by Bitcoin developers.
2015 Active Ethereum ETH Vitalik Buterin[15] Turing complete smart contracts.
Evan Duffield & Adds privacy to transactions through a decentralized
2014[9] Active Dash DASH
Kyle Hagan[10] coin-mixing system called Darksend.
Baldur Odinsson
2014 Active Auroracoin AUR Created as an alternative to fiat currency in Iceland.
(pseudonym)[3]
BlackCoin secures its network through a process
2014 Active BlackCoin BC, BLK Rat4 (pseudonym)
called minting.
DigitalNote (XDN) is a new private cryptocurrency
XDN-dev team, with an instant untraceable crypto messages and
2014 Active DigitalNote XDN [13]
dNote first blockchain banking implementation, use
CryptoNote protocol.
The underlying software for MazaCoin is derived
2014 Active MazaCoin MZC BTC Oyate Initiative
from that of another cryptocurrency, ZetaCoin.
Monero (XMR) is a new privacy-centric coin using
Monero Core
2014 Active Monero XMR the CryptoNote protocol. Monero focuses on the
Team[24]
use on Darknet Market.
[28]
Soopy & Craig First fully anonymouscryptocurrency due to
2014 Active NAVcoin[27] NAV [29]
MacGregor using blockchain with a subchain.
2014 Active PotCoin POT Developed to service the legalized cannabis industry
Edward Mansfield & First cryptocurrency to be nominated for a major
2014 Active Titcoin TIT
Richard Allen[43] adult industry award.[44]
What are the crypto-currencies and
release dates in the market?
Release Status Currency Symbol Founder Notes
Trusted storage for any small data: acts as an
EvgenijM86 &
2013[36] Active Emercoin EMC alternative, decentralized DNS, PKI store, SSL
Yitshak Dorfman
infrastructure and other.
Nxt is specifically designed as a flexible platform to
BCNext
2013[31][32] Active Nxt NXT build applications and financial services around its
(pseudonym)[31]
protocol.
First cryptocurrency linked to citizen
2013[17][18] Active Gridcoin GRC Rob Hälford [19] science through theBerkeley Open Infrastructure for
Network Computing[20][21]
Jackson Palmer
2013 Active Dogecoin DOGE, XDG Based on an internet meme.
& Billy Markus[11]
Mastercoin is bothdigital
2013 Active Mastercoin MSC J. R. Willett [22] currency andcommunications protocol built on top
of the existing bitcoin block chain.
Primecoin uses the finding of prime chains
Sunny King composed of Cunningham chains and bi-twin chains
2013 Active Primecoin XPM
(pseudonym)[34] for proof-of-work, which can lead to useful
byproducts.
Based on peer to peerdebt transfer. The term Ripple
Chris Larsen &
2013 Active Ripple[38][39][40] XRP[40] can refer to both the digital currency or the
Jed McCaleb[41]
payment network.
Sunny King
2012[7] Active Peercoin PPC First to use POW and POS functions.
(pseudonym)[34]
What are the crypto-currencies and
release dates in the market?
Release Status Currency Symbol Founder Notes
First cryptocurrency to use Scrypt as a hashing
2011 Active Litecoin LTC Charles Lee
algorithm.
Vincent
2011 Active Namecoin NMC Also acts as an alternative, decentralized DNS.
Durham[25][26]
BTC,[4][5]XB Satoshi Nakamoto[nt
2009 Active Bitcoin 1] First decentralized ledger currency.
T

There were more than 710 cryptocurrencies available for trade


in online markets as of 11 July 2016 and more than 740 in
total but only 9 of them had market capitalizations over $10
million.

Bitcoin is the 1st crypto-currencies.


The technology that makes crypto-currency possible!

WHAT IS BLOCKCHAIN?
What is blockchain?
• A blockchain is a distributed database that
maintains a continuously-growing list of
records called blocks secured from tampering
and revision. Each block contains a timestamp
and a link to a previous block.
• In relation to cryptocurrency, a digital ledger
recording a list of transactions.
How does blockchain works?
Who companies racing to adapt
blockchain?

https://www.weforum.org/agenda/2015/12/whats-the-future-of-blockchain/
Estimated spending on blockchain by
Banks
Buy coffee with crypto-currency
WAYS TO INVEST IN CRYPTO-
CURRENCIES
Ways to invest in crypto-currencies
• Earn rewards by mining
• Build your own mining rig
• Engage cloud mining service
• Trade from crypto-currencies exchange
• Buy low, sell high (https://poloniex.com; https://www.coinbase.com/; )
RISK
GOVERNMENT CONCERNS ON
CRYPTO-CURRENCY (BITCOIN)
Why government need to control fiat
currency?
• Government control the Fiat Currency. They
increase/decrease fiat currency to exert
economic influence.
• With Fiat Currency, they can track currency
movement, collect taxes, trace criminal
activities. Control is lost if everyone uses non-
government created currencies.
Impacts if everyone uses bitcoin or
other cryptocurrency?
Entire banking system will be irrelevant.
• Many banking jobs will be lost.
• Tax revenue lost when banking industry is gone.
• Where to get mortgage loan?
• Who will pay interest on your saving?
Increase in crime
• with cryptocurrency, untraceable financial transactions
• Drug trafficking, prostitution, terrorism, money
laundering, tax evasion all benefit.
• Case study “Silk Road – Online drug market”
Legality of bitcoin by country

https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country#List_by_country
THEFT/HACKER IN
BITCOIN/ETHEREUM
Bitcoin worth $78m stolen from
Bitfinex exchange in Hong Kong

https://www.theguardian.com/tec
hnology/2016/aug/03/bitcoin-
stolen-bitfinex-exchange-hong-
kong
PONZI SCHEME ALERT
Characteristics Ponzi Scheme
1. New opportunities with limited knowledge
The company sells shares to investors by taking advantage of a lack of investor knowledge or competence. By doing this, the
company can claim the investment strategy must be kept secret to ensure a competitive edge.

2. Initial high investments


Initially, the promoting company will pay out high returns to attract reinvestments and more investors. When other investors
begin to deposit it will lead to a cascade effect. The returns to the early investors are paid out by the investments of the new
investors and not out of profits.

3. High returns
Early investors often reinvest their money because of the high returns. The result of that means the promoting company does not
have to pay out much to the investors. This maintains the deception that the scheme is a legit company with high returns.

4. New offers for reinvestments


The promoting companies also try to minimize withdrawals by offering new plans to investors. Typically, the promoter asks for
more money and the money is frozen for a longer time in exchange for higher returns. The withdrawal request is usually promptly
solved to give the investors an illusion that the funds are solvent.

5. Long time investments


Usually, the companies ask for long term investments to secure the capital from sudden withdrawals.

6. Consistent payments
Fluctuations in the return on the investments raise questions from investors. Since Ponzi schemes and fraudulent companies
would like to have as few questions as possible from investors payouts are usually abnormally consistency.
The end of Ponzi
A Ponzi scheme sooner or later falls for on of the following reasons:
– The company decides to stop the investment plan for any reason. Could be fro
authorities or any other reason.
– There are too many withdrawals at once and the company can´t handle all the
withdrawals.
– The flow of new investors money slows down compare to the increasing withdrawals.
This cloud turn in a long shut down period with consistent lower payouts for a time.
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