BITCOIN
THE FUTURE OF MONEY
KEYWORDS
•BEFORE WE START WE MUST FIRST UNDERSAND THESE FEW SIMPLE TERMS TO HELP UNDERSTAND
WHATS REALY GOING ON HERE.
• Bitcoin (BTC) – A decentralized digital currency that operates
without a central authority.
• Satoshi Nakamoto – The anonymous creator(s) of Bitcoin.
• Blockchain – A public, decentralized ledger that records all
Bitcoin transactions.
• Decentralization – The removal of a central authority, allowing
Bitcoin to be controlled by a network of users.
• Cryptocurrency – A digital currency that uses cryptography for
security and operates on a blockchain.
WHY WAS BITCOIN MADE?
Satoshi Nakamoto is the pseudonymous creator of Bitcoin, who published the Bitcoin whitepaper in 2008 and
launched the network in 2009. Nakamoto designed Bitcoin as a decentralised, digital currency to eliminate
reliance on banks and prevent issues like inflation. They mined around 1 million BTC before mysteriously
disappearing in 2011, leaving Bitcoin’s development to the community. Despite many theories, Nakamoto’s
true identity remains unknown, with speculation ranging from individual cryptographers to a group of
developers. Their disappearance remains one of the greatest mysteries in the crypto world.
created bitcoin for 5 main reasons these being:
[Link]
[Link] Freedom
[Link] & Security
[Link] Fees & Fast
Transactions
[Link] Supply (Anti-
Inflationary)
DECENTRALIZATIO
N
Traditional financial systems is usually
controlled by banks, governments and
other organisations which create a sense of
insecurity on whether our money is same
or not. What bitcoin does is allows us to
break free from this control and allow us to
control the flow of transactions that
happen peer to peer.
FINANCIAL FREEDO
Most organisiations limit the flow of your own
money like for example they deny funds,
charge high fees for some transactions and
require approval for cross border.
However, bitcoin on the other hand allows 1 to
1 transactions to occur so no fees will be
deducted no matter how big your transaction
is
TRANSPARENCY &
SECURITY
The Bitcoin blockchain is a public ledger where all
transactions are recorded. This ensures:
Transparency: Anyone can verify transactions,
reducing fraud.
Security: Transactions are secured using
cryptography and cannot be altered.
No Counterfeiting: Bitcoin cannot be double-spent
or faked.
Unlike banks, which operate behind closed doors,
Bitcoin’s system is open-source, meaning anyone
can inspect how it works. This makes it more
resistant to corruption or manipulation.
LOW FEES & FAST
TRANSACTIONS
Sending money across borders using banks or services like Barclays bank
can be:
🔹 Expensive – High fees apply.
🔹 Slow – Transactions can take days.
🔹 Restricted – Some countries block certain transactions.
Bitcoin allows users to send money anywhere in the world with lower fees and
no need for third parties. While Bitcoin’s network can sometimes be slow
during periods of high demand, layer 2 solutions like the Lightning Network
now enable instant and nearly fee-free transactions.
Example:
Someone in the UK can send Bitcoin to a family member in El Salvador
within minutes, avoiding expensive remittance fees.
LIMITED SUPPLY (ANTI-
INFLATIONARY)
Unlike traditional currencies (fiat money) that can be printed in
unlimited amounts by governments, Bitcoin has a fixed
supply of 21 million coins. This makes it deflationary,
meaning it should gain value over time as demand increases.
Central banks often print money (quantitative easing), which
leads to inflation and devalues the currency.
Bitcoin’s scarcity ensures that it cannot be devalued in the
same way.
This is why some people call Bitcoin “digital gold”—it acts as a
hedge against inflation, similar to how gold has been used
for centuries.
HOW DOES IT WORK?
Bitcoin works through blockchain ledgers, mining, proof of work , bitcoin supply and halving which I will
speak about in the next couple of slides
BLOCKCHAIN LEDGERS
>What is a blockchain ledger? Public Blockchain Ledgers
• Open to anyone.
A blockchain ledger is a digital, decentralised, and • Examples: Bitcoin, Ethereum.
tamper-proof record of transactions that stores • Fully decentralised, allowing anyone to participate in verifying
information securely across a network of transactions.
computers. It plays a crucial role in ensuring 🔹 Private Blockchain Ledgers
transparency, security, and efficiency in digital • Restricted access; only selected participants can validate transactions.
transactions. • Used by businesses for internal record-keeping.
• Example: Hyperledger Fabric (used by IBM for supply chains).
>Why is it important?
🔹 Consortium Blockchain Ledgers
Bockchain ledgers are important because they • Managed by a group of organisations rather than a single entity.
provide a secure, transparent, and decentralised • Used in industries like banking and healthcare.
way of recording transactions. Unlike traditional • Example: R3 Corda, used for financial transactions.
record-keeping systems, blockchain technology 🔹 Hybrid Blockchain Ledgers
eliminates the need for intermediaries, reduces • Combines elements of public and private blockchains.
fraud, and improves efficiency in various • Example: Ripple (XRP) allows fast banking transactions but has some
industries. centralised control.
MINING AND PROOF OF WORK
Mining Proof of work
Mining is the process of validating and Proof of Work is a consensus mechanism used by many blockchains (such as
adding transactions to a blockchain Bitcoin and Ethereum before its upgrade to Ethereum 2.0) to validate
ledger. It involves solving complex transactions and prevent fraud.
mathematical puzzles using powerful In a PoW system:
computers. The first miner to solve the 1 Miners collect new transactions and bundle them into a
1️⃣
puzzle gets the right to add a new block of block.
transactions to the blockchain and earns a 2️⃣They use computational power to solve a
reward (usually in cryptocurrency, like cryptographic puzzle (a hash function).
Bitcoin). 3️⃣The first miner to solve the puzzle proves they did the
"work" and gets the right to add the block to the blockchain.
Miners compete to solve these puzzles
4️⃣Other nodes verify the solution, and if valid, the new block is added
through a system called Proof of Work
permanently.
(PoW), ensuring that transactions are
5️⃣The successful miner receives a block reward (e.g.,
verified securely and fairly.
BITCOIN SUPPLY AND
HALVING
BITCOIN SUPPLY BITCOIN HALVING
• 🔹 Bitcoin Supply (Fixed at 21 Million
Bitcoin halving is an event that cuts the block
BTC).
reward for miners in half every four years. This
• Bitcoin has a finite supply of 21 million slows down the production of new BTC, making
coins, meaning no more than 21 million Bitcoin even scarcer over time.
BTC will ever exist. This scarcity makes 🔻 Before a halving, miners receive a certain
Bitcoin similar to gold, creating demand amount of BTC for adding a block to the
and preventing inflation. blockchain.
• 💡 As of now, over 19.6 million BTC 🔻 After a halving, they receive 50% less BTC as a
reward.
have been mined, leaving less than 1.4
This continues until all 21 million BTC have been
million BTC to be created through
mined, which is estimated to happen around the
mining.
year 2140.
FINAL TAKEAWAY/SUMMARY
Bitcoin is a decentralised digital currency that operates on a blockchain
ledger, a secure and immutable system that records transactions without the
need for banks or intermediaries. Transactions are verified through mining,
where powerful computers compete to solve complex puzzles using Proof of
Work (PoW), ensuring security and preventing fraud. Bitcoin has a fixed
supply of 21 million coins, making it a scarce asset similar to gold. To control
inflation, Bitcoin halving occurs every four years, reducing miners' rewards
by 50%, which historically increases Bitcoin’s value by limiting new supply.
This combination of decentralisation, scarcity, and security makes Bitcoin a
revolutionary financial asset.
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