NATIONAL LAW INSTITUTE UNIVERSITY, BHOPAL

Capital Market and Security LAW

TRIMESTER- IX
SYNOPSIS: “Bitcoin Marketing strategy”

SUBMITTED TO: SUBMITTED BY:

Mrs. Padma Singh Akshay Sarjan

Professor 2017BALLB111
Introduction
The term “Bitcoin” has gained tremendous footprint across globe in the past couple of years.
Bitcoin is a type of digital currency, which was created and is held electronically. No one single
person or authority controls it. Bitcoins aren’t print produced, like rupees or dollars – they’re
produced by lots of people simultaneously running computers all around the world, using
specialized software that solves mathematical problems. Bitcoin is the first example of an
expanding category of money known as crypto-currency. Bitcoin can be equated with gold; it is
limited in supply. In all, only about 21 million Bitcoins will ever be generated through till year
2140, after which the process will automatically stop. The foundation of virtual currencies like
Bitcoins as an intermediate of payments is not authorized by any monetary authority & central
bank. “No regulatory approval, registration or authorization is stated to have been obtained by
the entities concerned for carrying on such activities”. In less than a decade, bitcoin has gone
from being a doubtful entity to a household name.

Statement Of Problem
Through this paper, I will emphasize the detailed study of Bitcoin’s marketing strategy which
states the complete market summary of Bitcoin and ultimately helps it to get recognized and
legitimized by the central bank.

Hypothesis
The study is empirical in nature. Thus the findings have been made by analysis in order to know
about the marketing strategy of Bitcoin.

Research Question
Whether Bitcoin’s are centrally accepted currency or not ?

Research objectives
The chief aim of this paper is to understand and explain how bitcoin affects traditional
transactions system.

This aim is proposed to be fulfilled through the following objectives: 1. To develop

understanding of what people from different sectors with the knowledge of Bitcoin transactions
think about this issue. 2. To understand what kind of impacts bitcoin transactions would have on
traditional transaction system

Literature of Review

Data collection method- is purely secondary in nature from various leading sources like
journals, newspaper, websites Leading databases of scholarly articles were used to obtain the
academic literature from which the subject was reviewed as comprehensively as possible,
including ABI/INFORM Complete, Academic Search Complete, Emerald Journals, JSTOR, and
ScienceDirect.

Antony Lewis- in his study on” the basics of bitcoin and blockchain” observed that There’s a lot
of information on cryptocurrency and blockchains out there. But, for the uninitiated, most of this
information can be indecipherable. The Basics of Bitcoins and Blockchains aims to provide an
accessible guide to this new currency and the revolutionary technology that powers it.  The
Basics of Bitcoins and Blockchains offers trustworthy and balanced insights to those interested in
Bitcoin investing or investing in other cryptocurrency. Discover the risks and mitigations, learn
how to identify scams, and understand cryptocurrency exchanges, digital wallets, and regulations
with this book.

Andriole(2017)- explained that most people, who bought a house or a car, or bought things on
Amazon, never thought about paying with cryptocurrency. Most people had no idea how many
cryptocurrencies there were (over 1,000), though a lot of people had heard something about
Bitcoin. The major significance of cryptocurrencies as explained by Andriole (2017) were; The
theft was essentially impossible with cryptocurrency. ~ 103 ~ It was potentially nefarious:
money laundering, among other transactions, was easy. Governments could not control it though
they could and would regulate and tax it (principally through investment instruments). An
investor could play with cryptocurrency and had created their own digital wallet. They could
convert some conventional money into Bitcoin, Ethereum, Litecoin or Ripple, and experiment
with how it had worked. They could assess the industry’s appetite for change, experimentation
and alternative payment systems; track industry progress as well as the technological
infrastructure required to expand the use of cryptocurrency (Gao, 2017).

Kim, et, al. (2016)- In his study, analyzed the user comments in online cryptocurrency
communities to predict fluctuations in the prices of cryptocurrencies and the number of
transactions. By focusing on three cryptocurrencies, each with a large market size and user base,
the researcher attempted to predict such fluctuations by using a simple and efficient method.
Furthermore, the simulated investment demonstrated that the proposed method was applicable to
cryptocurrency trading. In addition, the rich information in online communities could contribute
to understand the cryptocurrencies from different perspectives. Cryptocurrencies were
increasingly being used, and their usability had drawn attention from different perspectives.

Narayanan, et, al. (2016)- concluded that the given bitcoin’s cypherpunk roots, its scattered
documentation, and its lack of a formal specifications, Bonneau, Miller, Clark, Narayanan, Kroll
and Felten had completed the monumental tasks of producing the first systematic exposition of
bitcoin. The researcher had identified three components of bitcoin’s design that could be
decoupled and analyzed individually: (1) transactions and scripts, (2) consensus and mining, and
(3) the peer-to-peer communication network.