1. Name: Dr. Cathal Doyle Email: cathal.doyle@umail.ucc.iecathal.doyle@umail.ucc.ie Twitter: @Cathal_Doyle@Cathal_Doyle Website: cathaldoyle.comcathaldoyle.com

2.  The world is fast becoming a more digital place  From how we shop online, to listening to music, to reading books, to how we look at photos  Cash is also dying, where people prefer to use cards (especially with contactless options)

3.  Both small and large companies are looking at Bitcoin, and the block chain, to see how/will it impact their business  As you would expect, those who incorporate it face massive change issues  This change impacts all stakeholders in the company - its employees, its customers, its suppliers…

4.  So what are some of the benefits of Bitcoin?  Freedom in payment  Possibly lower/no transaction fees  Control and Security  No risk of “charge-backs”  Bitcoins Cannot Be Stolen  Information is Transparent  No Tax  No Tracking

5.  You are in control of your Bitcoins – there is no central authority figure to interfere  This means you can send and receive Bitcoins anywhere in the world at any given time  Buying and selling globally should be faster, easier, and cheaper than previous methods

6.  Currently there are no fees for transactions, or at the least very low fees  This means transaction fees through Bitcoin are lower than those charged for credit and debit card purchases  This is possible because users are required to keep the Bitcoin client running and connected to other nodes – thus sharing the burden of authorizing transactions

7.  Payments in Bitcoin are anonymous, where buyers do not have to reveal their personal information – this is not the case for credit cards – this protects against identity theft  Bitcoin can be backed up and encrypted to ensure the safety of the coins  Sellers cannot add extra fees to a transaction without being noticed

8.  Once Bitcoins are sent the transactions cannot be reversed  Disputed credit card transactions can take time to resolve, and the business can get hit with a chargeback fee  This cannot happen with Bitcoin – the power is entirely in the hands of the business

9.  Bitcoins’ ownership address can only be changed by the owner  For someone to steal your Bitcoins, they need to physically access your computer and send your Bitcoins to their account  Compare this to conventional currency systems, where all that’s needed is a few authentication details to gain access to your finances  This means that governments cannot freeze someone’s wealth, thus users of Bitcoins have complete freedom to do anything they want with their money

10.  With the block chain, all finalised transactions are visible to everyone (except for personal information)  Anyone at anytime can verify transactions in the Bitcoin block chain  Bitcoin protocol cannot be manipulated by any person, organisation, or government – this is due to Bitcoin being cryptographically secure

11.  There is no way for a third party to intercept transactions of Bitcoins  Therefore there is no viable way to implement a Bitcoin taxation system  The only way to pay a tax would be, if someone voluntarily sends a percentage of the amount being sent as a tax

12.  Unless users publicise their wallet addresses publicly, no one can trace transactions back to them  This means no one, other than the wallet owners, will know how many Bitcoins they have  This greatly increases privacy when compared to traditional currency systems, where third parties potentially have access to personal financial data

13.  Every story has two sides  Like any emerging information system, advocates will always sell the benefits, while detractors will point out the flaws  Bitcoin, like any other information system, has drawbacks

14.  So what are some of the drawbacks of Bitcoin?  Lack of awareness and understanding  You need tech know-how  No buyer protection  Bitcoin wallets can be lost  No valuation guaranteed  Security is always an issue  Risk of unknown technical flaws  No physical form  Still developing

15.  Many people are still unaware of digital currencies and Bitcoin – “how do I use it?”  Many people are sceptical about trying new technologies especially when money and payments are involved  Bitcoins are only accepted by a minority of companies (the chicken and the egg) – customers need to feel comfortable with making payments with Bitcoin

16.  Its not as simple as using traditional payment methods  To be able to conduct Bitcoin transactions, you must be fairly technology savvy  You will need to use online services to help with taking care and managing the digital currency

17.  If a customer buys an item through Bitcoin, and the seller doesn’t send the goods, the transaction cannot be reversed  A solution that has been put forward is to use a third party escrow service such as ClearCoin, but then escrow services would assume the role of a bank, i.e. no longer different  Trust seems to play a big part in Bitcoin

18.  If a hard drive fails, or a virus corrupts it, Bitcoins can be “lost”  There is nothing that can be done to retrieve these unless there is a backup  This can bankrupt a wealthy investor within seconds with no form of recovery

19.  As there is no central authority governing Bitcoins, no one can guarantee its minimum valuation  For example, if a large group of Bitcoin holders decided to “dump” their Bitcoins and leave the system, its value would decrease greatly  This would hurt users who have a large amount of wealth invested in Bitcoins

20.  While transactions through Bitcoins keep your personal details safe, there is still an issue with security  Like most information systems, Bitcoin is not 100% safe  Every “secure” system attracts people to test its security

21.  The Bitcoin system could contain unexploited flaws  If someone was to find such a flaw, it could make them wealthy at the expense of destroying the Bitcoin economy  This opportunity to become wealthy = incentive to hack the system

22.  Since Bitcoins are not in a physical form, they cannot be used in a physical store (yet)  It would always have to be converted to other currencies  A card with Bitcoin wallet information could potentially overcome this, but agreeing on a univseral system would be difficult

23.  Bitcoin is still at its infancy stage with incomplete features that are in development  New features, tools, and services are currently being developed to make the digital currency more secure and accessible  Just like any new currency in its beginning stage would need time to smooth out its problems, Bitcoin is no different

24.  Has anyone heard of the Dark web?Dark web  Bitcoin was the currency of choice for the transactions on the dark web  Great podcast about it: http://www.bbc.co.uk/programmes/b01bmpl4http://www.bbc.co.uk/programmes/b01bmpl4