Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.



No description

vishmika fernando

on 18 May 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BITCOIN

Mainly requires electricity for operation --> promotes renewable energy
Original method
Bitcoin mining
What is Bitcoin ?
It is the most widely used cryptocurrency
Cryptocurrency - Medium of exchange like normal currencies, but designed for digital use. Essentially lines of code with monetary value.
Cryptography - to secure the transaction.
How do you get Bitcoins
Trading - buying and selling or exchanging cash for Bitcoins
Mining bitcoins
Mining - solving mathematical problems
What is Bitcoin Mining?
YouTube,. (2015). What is Bitcoin Mining?. Retrieved 25 April 2015, from
Transition in Hardware used
over time
Central Processing Unit
Graphical Processing Unit
Application Specific Integration Circuit
What is Bitcoin Mining?
YouTube,. (2015). What is Bitcoin Mining?. Retrieved 25 April 2015, from

Near the sea
Adequate water supply for cooling
Efficient air cooling as it is near the coast
Past, present and future
of Bitcoin
Illegal Activities
Controversies with Bitcoin
Monopolized Mining
Boring, P.
( 2014, 4 February)
Bitcoin Could Strengthen The World Economy If Washington Doesn't Destroy It

. Retrieved from http://www.forbes.com/sites/perianneboring/2014/04/02/bitcoin-could-strengthen-the-world-economy-if-washington-doesnt-destroy-it/
Carmody, T.

(2013, 15 October)
Money 3.0: How Bitcoins May Change the Global Economy.
National Geographic
Retrieved from http://news.nationalgeographic.com/news/2013/10/131014-bitcoins-silk-road-virtual-currencies-internet-money/
Carney, M.
(2015, 6 March).

Hong Kong authorities arrest five in suspected MyCoin bitcoin exchange Ponzi scheme
Retrieved from Retrievedttp://pando.com/2015/03/06/hong-kong-authorities-arrest-five-in-suspected-mycoin-bitcoin-exchange-ponzi-scheme/
Mystery in Bitcoinland…. the disappearance of FriedCat.
(2015, 4 March).
Bitcoin reporter.

Retreieved from http://www.btcreporter.com/2015/03/04/mystery-in-bitcoinland-the-disappearance-of-friedcat/
Visit of ASICMINER's Immersion Cooling Mining Facility.
(2015, 25 April)
Retrieved from https://bitcointalk.org/index.php?topic=346134.0

Anonymous marketplace-Tor system
Not that easy to track transactions
Mixed money flow
Bitcoin as "currency"
Drugs and contrabands
Shut down by FBI 2 years after launched
Why Hong Kong?
Economical Implications
Both parties need to agree that Bitcoin has value and that they are willing to exchange products or services for its worth
(owner of house)
Paying in Bitcoins
Only of transaction is accepted
Maximum amount of Bitcoins that can exist
21 million
Bitcoin wallet
lose access and coins are lost for ever
Rapid price fluctuations .
How ASIC Mining influences Hong Kong

Start : February 2010 it was less than 0.01 USD
Scarcity --> Inflation
Transactions are based on mutual acceptance of value.

Now : April 29th 2010 it is 235 USD
Highest ever : 29th of November 2013 it was 1242 USD ~ forbes
Original Bitcoin mining - PCs.
ASICs cause power imbalance due to large mining capability - leads to a mining monopoly
Leading miner responsible for condititons of the bitcoin
Capability of disrupting Bitcoin economy
Can cancel other transactions or double-spend
Cause major fluctuations in price
Example: GHash majority -> dumping of Bitcoin -> price fall by 9%.
ASIC chips are immersed in cooling liquid
cooling pipes
External ventilators to dispense heat to the surroundings
Near to Mainland China
Proximity to chipmakers in China
Ban on trading Bitcoin in China
Freedom in HK
No laws regarding use of Bitcoin
Recent ban on trading Bitcoin in China
Financial regulation prevents money laundering/other criminal activities
Allows small businesses to enter market
Treated as a commodity - no VAT in HK
Low energy cost available
High bandwidth
Why Kwai Chung
How price fluctuations affect the economy
effect of coperate and governmental
decisions on the value of Bitcoin
Chips produce a LOT of heat
Creating an entire new industry
Anyone who has enough money to buy ASICMINER shares can technically 'mine' bit coin - without the initial hassle or high investment
Opening up of Bitcoin exchange
(one such shop is next to our own univesity!!!)
Value of Euro
when the Government
had negative
interest rates
It is a very powerful tool to fight poverty as it has the ability to transfer money globally .
Remittances and fighting oppressive regimes can be tackeled by bitcoin as it has no governing body

Access to credit
TheBitGive Foundation exists to harness bitcoin’s tremendous power to innovate the way we tackle charitable giving making it easy to donate
To evade taxation and negative interest
By using Bitcoins anonymous transactions
Wiki leaks cut off from rest of donations is able to survive
Increase in acceptance and trading
access to credit is anything but evenly distributed (especially in the 3rd world countries)
Bitcoin is a way to reach millions and act as a bank.These people otherwise might not be able to access traditional banking services.
Bitcoin vastly decreases the cost and risk of extending those services to people with low-incomes and poor credit scores.
Increase in trading
bitcoins work pretty much like cash without borders.
More companies worldwide accept bit coins for their product and services
Near industrial area
High bandwidth
Easier accessibility to equipment and shipments - important to import latest ASIC technology
History of ASICMINER
in Kwai Chung
Owner operates under the pseudonym
- FriedCat
Starting capital
- Virtual IPO (Initial Public Offering)
Return for Investors
- Dividends from profits from Bitcoin mining
ASICMiner Kwai Chung boosted ASICMINER's total mining capacity
Along with other mining facilities that ASICMINER controls (BTC Guild, BitMinter) - total share of 26%
Expected to grow more as new chips to be introduced, moving from Gen1 -> Gen3
Could give majority
Potential for use in developing countries
The developing world and Bitcoin
Nigeria is blacklisted and doesn't have access to online payment schemes such as Paypal
Difficulty in receiving foreign funds from family members
Companies that do provide have very high banking charges
Start of Kwai Chung miner
HOw it can effect daily life
Hong Kong’s MTR-issued Octopus card has made daily purchases frictionless and fast.
bitcoins work pretty much like cash without borders.
Bit coins reduce the time and money required for foreign remittance making transactions cheaper and faster
It can help fund areas where there is a restriction in transaction of money eg A war torn country with a financial blockade in place
Eliminates barrier for entry to earn money in Bitcoin
Dividends paid in Bitcoin
Trading Bitcoins
Bitcoin -->
Cryptocurrency with monetary value
ASICMiner -->
Mining more efficiently
Why Kwai Chung -->
Commercial location & Access to resources
Increase usage and acceptance

Increase usage
Impact on Architecture
Specialized features need to be incorporated into the building
Promotes Usage oriented construction.
Ease of use in developing countries, where access to banking is difficult
Moved to HK
5 arrested
Tend to generate a tighter regulation
Missing Fried Cat
Fried Cat
Drive force of ASICMINER
Explored HK Bitcoin market
Stopped some sold Bitcoin miners' service with unclear reasons
Suspected missing
Social concern -> "Purist"
Law concern -> tighter
Profits way flipped
Technology - Harder
Business sense
How "Purists" define "freedom" and "fair" - Even cheating as they want?
Tighter legistation
Social Mistrust
Impact on Globalization
Kanak Kabara, Abhinav Joshi, Vishmika Fernando, Mark Chen
Why is the asic miner
in Kwai Chung operating in secrecy
only images publicly available showing the exterior of the building where the Kwai Chung ASIC miner is located.
Under closer inspection...
Branding on a
nearby building
Building clad with
blue tiles on
the exterior
locating and identifying the building
Building clad with
blue tiles on
the exterior on the opposite side of the road
Branding on a
nearby building
access to the
building was
entered an
on the opposite
side of the road
Roof top view
of the abandoned building
Highly industrial area with near by port
and multiple points of commerce
At the time the ventilators were not operational
Further deductions...
It is possible that the enterprise has shutdown
It could also be deduced that the reason for the operations to be of such clandestine nature to be due to the fact that mining Bitcoins is not a widely accepted practice
Full transcript