MONETARY
POLICY IN
DIGITAL
AGE
UNDERSTANDING
BITCOIN
• BITCOIN IS A DECENTRALIZED
DIGITAL CURRENCY THAT HAS
RESHAPED THE LANDSCAPE OF
FINANCE AND CHALLENGED
TRADITIONAL NOTIONS OF MONEY
AND VALUE. IT OPERATES ON A
TECHNOLOGY CALLED
BLOCKCHAIN, WHICH IS A
DISTRIBUTED LEDGER THAT
RECORDS ALL TRANSACTIONS
MADE WITH BITCOIN. THIS
PRESENTATION WILL EXPLORE THE
HISTORY, FEATURES, ADVANTAGES,
CHALLENGES, ADOPTION, AND
FUTURE OUTLOOK OF BITCOIN,
ADDRESSING BOTH POSITIVE AND
NEGATIVE VIEWPOINTS ABOUT
History of Bitcoin
1
Genesis Block
Bitcoin's journey began with the release of the
first Bitcoin software and the mining of the
genesis block in January 2009.
2
Milestones
Key events such as the first Bitcoin transaction,
major price movements, regulatory
developments, and notable hacks have marked
significant milestones in Bitcoin's history.
How Bitcoin Works
Blockchain Technology
Mining
Decentralization
Blockchain is a distributed
The process of mining
Bitcoin's decentralized nature
ledger that records all Bitcoin
involves verifying and adding
means it operates without a
transactions, ensuring
transactions to the blockchain
central authority or
transparency and security.
by solving complex
intermediary, providing
mathematical puzzles.
financial sovereignty to its
users.
Features of Bitcoin
1
Limited Supply
2
Pseudonymity
The fixed supply cap of 21 million
Bitcoin transactions are
bitcoins has significant implications
pseudonymous, with addresses
for inflation and scarcity.
representing users' identities,
providing a certain level of privacy.
3
Security
Cryptographic protocols are used to secure Bitcoin transactions and wallets, ensuring
the safety of assets.
Advantages of Bitcoin
Borderless Transactions
Financial Inclusion
Store of Value
Bitcoin enables seamless
peer-to-peer transactions
across borders without the
need for intermediaries.
Bitcoin can provide access
to financial services for the
unbanked and
underbanked populations.
Bitcoin's potential as a
hedge against inflation and
store of value in turbulent
economic times is being
increasingly recognized.
Challenges and Risks
Volatility
Regulatory Uncertainty
The price volatility of Bitcoin
Scalability
Challenges related to Bitcoin's
poses implications for
The evolving regulatory landscape
scalability, such as network
investors and merchants,
surrounding Bitcoin raises concerns
congestion and transaction
requiring risk management
about money laundering and tax
fees, need to be addressed
strategies.
evasion, necessitating compliance
for widespread adoption.
measures.
Adoption and Use Cases
Institutional Adoption
Institutional investors, banks, and
corporations are increasingly
recognizing Bitcoin as a store of value
and investment asset.
Payment Use Cases
Bitcoin is gaining acceptance as a
means of payment by merchants and
businesses worldwide, expanding its
utility.
Remittances and Cross-Border Payments
Bitcoin is facilitating low-cost, fast
remittance payments across borders,
providing financial accessibility.
Future Outlook
1
2
3
Technological
Innovations
Regulatory Environment
mainstream acceptance and
Ongoing developments, such
future regulations on Bitcoin's
integration into traditional
as the Lightning Network, aim
adoption and price trajectory.
financial systems.
to improve Bitcoin's scalability
Mainstream Acceptance
Potential for Bitcoin to achieve
and usability.
Speculation on the impact of
Conclusion
Key Points
Encouragement
Recap of Bitcoin's history, technology, benefits,
Encouraging further research and discussion
challenges, adoption, and future outlook.
on the topic of Bitcoin to foster a deeper
understanding.