A PROJECT

On
A study on Cryptocurrency- Bitcoin

Submitted to:

The Rashtrasant Tukdoji Maharaj Nagpur University,Nagpur

Submitted in partial fulfillment of the requirement for the Award of the Degree
of Bachelor of Bussiness Administration

Submitted By:

Amaya.M.Bais

Under The Guidence Of:

Hitesh Raicha

Department of Commerce, Management & Computers

2018-2019

Hislop College Nagpur.

 INDEX
Serial no. Particulars Page no.

1. Introduction to 3-4
Cryptocurrency

2. Introduction to Bitcoin 5-6

3. Objectives of study 7

4. Research Methodology 8

5. Bibliography 9
INTRODUCTION TO CRYPTOCURRENCY: .
Cryptocurrency is an electronic money created with technology controlling its creation and
protecting transactions, while hiding the identities of its users.
Crypto- is short for “cryptography”, and cryptography is computer technology used for
security, hiding information, identities and more. Currency simply means “money currently in
use”.

Cryptocurrencies are a digital cash designed to be quicker, cheaper and more reliable than our
regular government issued money. Instead of trusting a government to create your money and
banks to store, send and receive it, users transact directly with each other and store their
money themselves. Because people can send money directly without a middleman,
transactions are usually very affordable and fast.
To prevent fraud and manipulation, every user of a cryptocurrency can simultaneously record
and verify their own transactions and the transactions of everyone else. The digital
transaction recordings are known as a “ledger” and this ledger is publicly available to
anyone. With this public ledger, transactions become efficient, permanent, secure and
transparent.

With public records, cryptocurrencies don’t require you trust a bank to hold your money.
They don’t require you trust the person you are doing business with to actually pay you.
Instead, you can actually see the money being sent, received, verified, and recorded by
thousands of people. This system requires no trust. This unique positive quality is known as
“trustless. The first cryptocurrency was Bitcoin.

THE HISTORY OF CRYPTOCURRENCY :

The first decentralized digital cryptocurrency can be traced back to “bit gold” (not to be
confused with Bitgold), which was worked on by Nick Szabo between 1998 and 2005 but
was never implemented.

Although bit gold is considered the first precursor to bitcoin, cryptocurrency pioneer David
Chaum’s company DigiCash (a company founded in 1989 which attempted to innovate
digital currency), Wei Dai’s b-money (a conceptual system published in 1998 which Satoshi
cites it in the Bitcoin white paper), and “e-gold” (a centralized digital currency that started in
1996) are all notable early mentions.

With that history noted, modern digital currency starts in 2008 when Satoshi Nakamoto (an
anonymous person and/or group) released their paper detailing what would become Bitcoin.
Bitcoin became the first decentralized digital coin when it was created in 2008. It then went
public in 2009.

As of 2018, Bitcoin is the most commonly known and used cryptocurrency. Meanwhile, other
coins including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and more are notable
mentions.

Given the popularity of Bitcoin as well as its history, the term “altcoin” is sometimes used to
describe alternative cryptocurrencies to bitcoin (especially coins with small market caps).

As of January 2015, there were over 500 different types of cryptocurrencies – or altcoins –
for trade in online markets. However, only 10 of them had market capitalizations over $10
million.

As of September 2017, there were over 1,100 crypto currencies and the total market
capitalization of all cryptocurrencies reached an all-time high surpassing $60 billion! Then,
by December 2017, the total market cap reached $600 billion (a multiple of 10 in only two
months).

In other words, although the future is uncertain, cryptocurrency seems to be more than just a
fad. Today crypto currency is shaping up to be a growing market that is likely here for the
long haul.
INTRODUCTION TO BITCOIN:
Bitcoin is a digital,decentralized, partially anonymous currency, not backed by any
government or other legal entity, and not redeemable for gold or other commodity. Its
proponents argue that Bitcoin has many properties that could make it an ideal currency for
mainstream consumers and merchants for example,bitcoins are highly liquid ,have low
transaction cost, can be used to send payments quickly across the internet and can be used to
make micropayments. This new currency could also hold the key to allowing organizations
such as Wikileaks,hated by government, to receive donations and conduct business
anonymously.

Amazingly, as of October 2011,a bitcoin (currency ticker BTC)IS WORTH ABOUT TWO
U.S Dollars (USD),there are about $20 million of bitcoins in existence, there are probably
around 20,000 Bitcoins are traded every day.

Most of the currencies in the world, including the reserve currencies are flat currencies. The
term flat currencies refers to the currencies that are issued by a government, and the
government promises to pay the holder of such currencies an equivalent amount in gold.
Ifneeded. Thus these currencies usually have a central regulatory body which issues them,
andare consequently called ‘centralized’. infact, at the end of the day they have a central
regulatory body which issues them and are consequently called ‘centralized’. In fact, at the
end of the day, they have the value they have, because somebody said soothe modern state
can make anything it chooses as acceptable currency, without any further backing of any
kind, even without a connection with gold.

Bitcoins are the most sought after cryptocurrency in the market. However there are several
other currencies which have gained momentum ever since the concept has been introduced.

Below are some other of cryptocurrencies that exist:

1. Ethereum-Ethereum is the second most famous name in the virtual currency market. It
somewhat similar to the concept of bitcoins however it possesses some additional attributes.
It is purely a block chain based platform. What makes it special is the Ethereal Virtual
Machine. The block chain in ethereal is used not to store data of the transaction but to make
sure smooth run of a decentralized application.

2.Ripple-Ripple is more in the nature of a payment protocol created and developed by a

company named ripple, which is based on the concept of Real time Gross Settlement. It was
initially released in year 2012.

3. NEM – Similar to bitcoinNEm is also a peer-to-peer block chain platform launched in the
year 2015.It uses the unique proof-of –importance algorithm, a way to validate transactions
and achieve the distributed consensus.

4. Litecoin- Initially introduced in the year 2011, litecoin is mostly identical to bitcoin.What
make it stand out is the use of segregated witness and the lightning network.
Some other crypto currencies are bbcoins and doge coins which have not gained much
significance due to their technical shortcomings and inability to standout.

Terms related to Bitcoin

• Bitcoin – Bitcoin is the name of the project started by Satoshi Nakamoto to create the
world’s first decentralized crypto-currency. A Bitcoin is the name of a single unit of the
Bitcoin currency, abbreviated as BTC.

• Address – An address is a key pair, including public and private key, used by user to access
their bitcoins.

• Transaction – A Transaction is a single operation of moving Bitcoins from one set of one
or more Addresses to another set of one or more Addresses. A Transaction is similar to a bank
transfer.

• Block – A Block is a package of information containing most notably all Transactions

created since the previous Block, as well as reference to that preceding Block.

• Block Chain – A Block Chain is a collection of linked Blocks from the most current one to
the Genesis Block.

• Network – The Bitcoin Network is a collective name for all applications connected together
that exchange information about Bitcoin Blocks, Transactions and connected Clients.

• Wallet – A Wallet is a set of Addresses created by the Client and saved locally in a file.

• Miner – A Miner is a computer machine and accompanying application dedicated to

creating new Blockish significance due to their technical shortcomings and inability to
standout.
Objectives of the study :

1. Understanding the concept of Bitcoin.

2. Analysing the position of Bitcoin in India
3. Studying the regulatory concerns regarding the Bitcoin.
4. Understanding the intellectual property issues.
5. Analysing the Security, privacy and Data Protection issues.
6. Understanding and analyzing the other risks and vulnerability in Bitcoin transactions.
7. Studying the regulatory considerations and setting up of Bitcoin related business in
India.
Research Methodology :

Research Methodology is a set of systematic technique used in research. This

simply means a guide to research and how it is conducted. It describes and analysis methods,
throws more light on their limitations and resources, clarify their pre-supposition and
consequences, relating their potentialities to the twilling zone at the frontiers of knowledge.

Data Collection:
Data for the purpose of research has been collected from secondary sources. I had
collected data from the different websites. The analyzed in order to study the concept of
Bitcoin.

Primary Data:
The data collected by the researcher himself for finding the solution of a particular
problem or situation, is known as primary data. This type of data is characterized by it’s
originally as it is freshly collected. For collecting primary data, researchers need to take many
decisions regarding proper selection of relevant sources, sampling techniques, research tools,
etc.

Methods of Primary Data Collection:

 Surveys
 Interviews
 Observations
 Experimentation
 Questionnaire
 Schedule

Secondary Data:
When a researcher uses data which are previously collected by some other
researcher, institutions, or agencies for their own purposes are called secondary data. The
researcher collects secondary data either from an internal sources of an organization, or from
the published sources like reports and journals. The purpose of data may vary from that of the
current study.
Methods of Secondary Data Collection:
 Internet
 Business Journals
 Libraries
 Social Book

The study is based on the collection of only secondary data which is

collected from the different articles and website releted to Bitcoins provides the most
accurate data and information about the concept of the bitcoin.websites like taxmann(tax
& corporate laws of india),PDFs like Bitcoin India Report 2017 has been used.
BIBLIOGRAPHY:
1.https://cryptocurrencyfacts.com

2.https://bitcoin.org/en/release/v0.11.0

3.https://bitcoin.org/bitcoin.pdf (section 7)

4.https://bitcoin.org/bitcoin.pdf (section 8)

5.https://bitcoin.stackexchange.com/question/37344/is-the-spv-client-model-scalable