Bitcoin The Future of Currency By: Bernardo Lopez Dr. Carl Rebman ITMG 100 Nov. 12, 2013 “There is no way to value Bitcoin, which means there is nothing constraining its price other than supply and demand.” Blodget, Henry

Introduction  What is money?  Medium of exchange  Nobody invented money, it was a result of human interaction  What is Bitcoin?  fungible unit of value backed by computer processing power.  Digital currency

Timeline AUG 2008: Domain name ' is registered JAN 2009: The first Bitcoin transaction FEB 2010: Bitcoin market is established NOV 2010:Bitcoin economy passed the $1 million USD FEB 2011: Reached parity with the US Dollar (1:1) MAR 2013: Bitcoin economy passed the $1 billion USD

Information  Decentralized system, power is spread among all users (no central authority or third-parties)  Regulated by peer-to-peer  Finite number of coins = eliminate inflation (no “magic”)

Price of Bitcoins Year Price June 8 th, 2011 $32.00 January 17th, 2012 $7.20 August 19 th, 2012 $15.25 March 11 th, 2013 $49.00 April 10 th, 2013 $ November 7 th, 2013 $ Price History

Miners  Workforce  Paid with Bitcoins  Bundle up transactions = ‘blocks’ &’block chains’  Cryptography ensures and secures transactions  All participants know the history of all transactions in the network

Bibliography Hobbs, Darren. "Explain like I’m five: Bitcoin." Darren Hobbs, Shamelessky self- promoting since 202. Wordpress, 09 Apr Web. 8 Nov Lee, Timothy B. "An Illustrated History of Bitcoin Crashes." Forbes. (2013): n. page. Web. 10 Nov "History." Important milestones of the Bitcoin project..