Group Members

Fayoke Banjo (Team Lead)

Andrine Jackson-Scott

Claudeen Grenyion

Ornela Keruti

Chris McFarlane

AGENDAINTRODUCTIONCHARACTRISTICSHOW IS BITCOIN AN INDUSTRY TREND?PESTLE ANALYSISBITCOIN ECOSYSTEM AND DESIGNBITCOIN: ITS PLACE IN E-COMMERCEBITCOIN MERCHANTSBITCOIN CHALLENGES ADDRESSED AND ADDRESSINGBITCOIN OPPORTUNITIESCOURSE CONCEPTS INCOPERATEDCONCLUSION

Introduction• Released in 2009 by a programmer using the Pseudonym Satoshi Nakamoto

• It is a protocol that is electronically created and stored

• Uses cryptography for security, which is extremely difficult to counterfeit

• Facilitates electronic payments based on mathematical proof and validation

• Bitcoins are mined using computer power in a distributed networkhttps://www.youtube.com/watch?v=Um63OQz3bjo

Bitcoin Characteristics

DecentralizedOpen sourcePeer to peerEasy to useUnregulated (that is changing slowly)Anonymous yet TransparentFast but irreversible transfers

Bitcoin: An Industry Trend- How?

• The first Crypto-currencies to gain ground in the real economy. Other Cryptocurrencies are built from the same open-source code

• Disruptive technology in the financial industry

• Offers a 21st century alternative to brick and mortar banking

• E-commerce is becoming common place which opens further opportunities for the continued use of the currency

• Bitcoin is becoming a mainstream trend as the most popular virtual currency with the highest value in circulation compared to other cryptocurrencies.

Bitcoin- An industry Trend- How? Cont.

• Millennials and high income consumers/believers are earlier adopters

“13% of millennials and 19% of high income respondents use digital currencies to make payments on a weekly basis” (Accenture, 2014)

• Usage is estimated to increase in these two groups to 26% and 32% respectively by 2020

• Decline in payments using traditional payment instruments

• This momentum is expected to continue in the future

POLITICAL ANALYSIS• Not controlled by any government body

• China, Russia?- Banks barred from accepting bitcoin

• United States, Canada & EU considered Pro-bitcoin

• Allowed between private entities.

ECONOMICAL ANALYSIS• Market capitalization exceeds $6 billion- 0.008% of global

GDP of $78 trillion• 21 million bitcoins in existence today and 15,359,800 in

circulation• Too small to affect Federal government ability to conduct

monetary policy• Over 88,000 merchants currently use Bitcoin

SOCIAL-CULTURAL

• Driving force- Anonymity, Reach and Savings

• Low-level awareness & Usage

• More merchant adopting the payment technology can increase adoption among consumers

TECHNOLOGICAL• Bitcoin public ledger (Blockchain) is being

leveraged

Environmental Factors• As demand grows, More computational power required • Miners to find alternative source of electricity- cheap

coal in old plants• Carbon footprint- associated with 1.5 tons of CO2

emission/ Bitcoin

LEGAL FACTORS• Decentralized nature of the coin hinders any form of

regulatory effort THIS IS CHANGING:• Countries such as Canada, U.S.A, E.U are putting

regulations in place• E.g. Obama Administration partnering with private companies

(Blockchain alliance)

Bitcoin Ecosystem

Bitcoin Design• Block chain technology• Dedicated computing power – hash rate• Shared public ledger• 256 bit encryption protocol• Files on a computer – wallet• Enforced with cryptography

Place within ecommerce framework

• Revolutionize ecommerce payments by offering a peer-to peer digital cash system

• Disruptive to traditional payment systems• Most beneficial to merchants

• Cross-border payments• Bureaucratic process involved in initiating a payment

gateway for e-commerce sites and incorporating the banks protocols

Bitcoin Merchants• Overstock

• Virgin Galactic

• Dish Network

• Dell

• Microsoft

Bitcoin challenges

Bitcoin challenges (cont's) • Confirmation Times

• Blockchain Scalability

Bitcoin challenges (cont.)• Double Spending

• Security

Bitcoin Opportunities• Transfer of property

• Ex. Colored Coin designing small portions of bitcoin to denote physical property

Bitcoin Opportunity Cont.• Identity Management

• Social security number, tax identification number and even driver’s license

• Access to wider and untapped Market

Course Concept incorporatedMOBILE WEBSITE- Xapo, BitGo, Coinbase

MOBILE WEB APP: Windows, Mac and Linx (BitGo, Bitcoin Core)

NATIVE APP: IOS, Android, Windows Phone, Blackberry (Airbitz, Bitcoin

Wallet)

HARDWARE: Ledger Nano, KeepKey, Trezor

• Hardware wallet that makes bitcoin security simple • Can keep the user private key safe• Validate Transactions

Conclusion• Crypto-currency landscape is still evolving and despite its

issues and challenges• The bitcoin technology is in the stage as the internet in

the 1990s• Bitcoin might not be the major Crypto-currency of the

future due to its challenges and drawbacks• The bitcoin open technology platform is definitely leading

the way towards a more seamless digital global economy