Economic Aspects Of BitcoinShivek Khurana

Cluster Innovation CentreUniversity of Delhi

Give me your food !

Banks are bigger animals

You are the mouseAnd mouse’s threatening is currency

In 2008 came a smart mouse

In 2008 came a smart mouse

In 2008 came a smart mouse

Bitcoin is not

online money transferbacked by any state

Bitcoin is Distributed

No big animal friend

Bitcoin is Distributed

No big animal friendAn ecosystem of miners

Government(s) no like Bitcoin

1. state can track issued money = earn taxes2. seigniorage

Government(s) no like Bitcoin

1. state can track issued money = earn taxes2. seigniorage

1. No track, no taxes :P2. No printing, no seigniorage

The dark side

1. Promotes illegal transfer (Peer to peer transactions)2. Controversial : backed by an algorithm

Transaction

Bank transactions are never final

Transaction

Bank transactions are never finalBitcoin transactions are

Legislative and Judiciary

The justice or legislative system can take your money at any time

Legislative and Judiciary

The justice or legislative system can take your money at any timeYour bitcoins are only yours to keep

Limits

The bank limits access to your own money

Limits : Lifted

The bank limits access to your own moneyNo bank, no limit

Macro Manipulation

The legislative manipulates the value of your money

No Macro Manipulation

The legislative manipulates the value of your moneyOnly the community can manipulate the value

Restricted Geographic Mobility

Difficult to move money across geographic boundaries

Geographic Mobility

Difficult to move money across geographic boundariesLong live internet

Mathematically Controlled Supply

Normal currencies are produced at the will of the legislative

Mathematically Controlled Supply

Normal currencies are produced at the will of the legislativeBitcoin is controlled by an algorithm. And generated by a process called mining.There cannot be more than 21m bitcoins ever.

Bitcoin Today

Is a mainstream currencywith a total value of 8,822,045,700 USDand real atms in Canadaand companies like Virgin Galantic, Shopify accepting them

Supply Chart

Is bitcoin real ?

Yes. Bitcoin is real and interconvertible. Current Rate : $807 (yesterday’s price)

Bitcoin is open by design

Nobody owns itNobody controls itAnyone can take part in it

And that’s why most government institutions/ finance dudes don’t like it

Bitcoin Bubble

$600 variation in 2 months

1. The currency is not mature2. But bubble can be justified

Why Bubble ?

1. More mouses have started believing in the power of bitcoin

2. The bitcoin follows supply/ demand principle. More the demand, more is the price.

Bitcoin is not a bubble

The value of a currency increases as the issuing authority becomes more powerful. The bitcoin issuing authority has gained sudden traction, hence the value of bitcoin has increased.

We are passing a milestone

Bitcoin Ecosystem aims to change finance as the internet changed publishing.

And it is doing quite well as of now.

Stay Tuned protocol specification

Thank you