What is a bitcoin?
As of now most of you might have heard the name of bitcoin somewhere in the Newspaper, Television, Internet or while chatting with friends or from some investor. For those of you who never heard of Bitcoin or heard but don’t know what exactly it is Here is a brief information regarding it.
Bitcoin is one of many available blockchain technology based cryptocurrencies in a market with decentralised, peer to peer transaction facility. Meaning, one person sitting in India could transfer his or her digital cryptocurrency to any other person sitting in anywhere around the globe without any intermediate banking system’s central servers, without giving single penny as a transaction fee or without anyone directly knowing that between which two persons this transaction took place. I’m saying “without anyone directly knowing” because there are other ways to check information about the transaction in indirect ways. but that is a topic for some other time.
How can new bitcoins be created?
To generate new bitcoin there is a method called bitcoin mining. In this mining process, several powerful processors are used by miners to solve complex mathematical problems which were generated when someone initiated a digital transaction of bitcoin, And to solve this problems miner gets rewards as newly generated bitcoins or fraction of bitcoin depending on the complexity of the problems. In this manner, new bitcoins gets created but there is a maximum limit on how much bitcoins could be created to maintain currency value. If you want to know more about the technical procedure of bitcoin mining then click here to buy a book “Bitcoin: The Ultimate Guide to the World of Bitcoin, Bitcoin Mining, Bitcoin Investing, Blockchain Technology, Cryptocurrency (2nd Edition)”on Amazon.
Are there any other cryptocurrencies apart from bitcoin?
Few other cryptocurrencies apart from Bitcoin are LiteCoin, Ethereum, Bitcoin Cash, IOTA,..etc. Each with some share of market varying from time to time and cryptocurrency to cryptocurrency. In a market for digit cryptocurrencies, there was a saying that “if bitcoin is a gold then LiteCoin is silver”. But things have changed for LiteCoin in recent past with the rise of Ethereum as the second most valued cryptocurrency by market capitalisation.
Where can I buy bitcoins?
if you wish to buy any cryptocurrency then there are a number of cryptocurrency exchange platforms available depending on your country or region where you live. And these exchange platforms might not be legally licenced by a government or any agency because of bitcoins legal status in that country. ZebPay is a cryptocurrency exchange platform and wallet available in India where anyone can buy and sell BitCoin but it is not legally licenced. There is another platform for cryptocurrency exchange Coinbase but it is not available in India to buy and sell as it is the US-based platform.
Why is bitcoin not legal yet in India?
Now you might be thinking that if Bitcoin and other cryptocurrencies are of so much use for a common man with no transaction fees or service charges and privacy up to certain extent then why they are not legal? or it must be really good to invest in them, use them as a regular currency for daily needs or for overseas transactions. But there is a catch with Bitcoin also, In fact, there is a list of disadvantages over each advantage of cryptocurrencies like bitcoin. People with bad intentions can use cryptocurrencies for terror funding or they can evade tax and not only this, a financially strong player can manipulate cryptocurrency value as no central agency is monitoring it. This is another thing that origin of bitcoin itself is due to lack of trust in central agencies.
What is a stance of the Indian government?
Recently Finance minister & Minister of Corporate Affairs of India Mr Arun Jaitley under Prime minister Modi government in his budget speech on 1 Feb 2018, stated that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses. He reiterated that India does not recognise them as legal tender and will instead encourage blockchain technology in payment systems. Further, he goes on to state that “The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system,”. Because of ambiguous nature of this statement, people are confused with governments decision that whether government banned the use of cryptocurrency in India by all means or government is just not accepting bitcoin as a legal tender as they accept coins and paper currency. In a separate discussion, Finance minister’s tone of the conversation was bending towards the second possibility of not accepting bitcoin as legal tender only In short cryptocurrency in India is neither totally banned nor legal tender and those who do any transactions in cryptocurrency should be aware of risk and consequences of using it.
How does world see bitcoin?
There are several countries where bitcoin is illegal as of now, some example would be in Northen African countries Algeria, Morocco in South Amerian countries Bolivia, Ecuador And in Asian countries Kyrgyzstan, Bangladesh, Nepal, Cambodia & Indonesia( Illegal as payment tools). And in case of China trading by an individual is legal but Bitcoin mining is illegal. Recently on 18 Feb 2018 Ethereum cofounder Vitalik Buterin warned people that “cryptocurrency value could drop to near zero at any time”, & this indicates the volatile nature of cryptocurrency. This is one side but there are several others, who see vast potential in bitcoin and interns into blockchain technology. On which bitcoin is based.
Want to learn more about bitcoin investment or when to buy and sell cryptocurrency then you should buy a book to learn investment techniques. I would recommend you to buy “Blockchain Decrypted for 2018 – How To Profit With Crypto Currencies, Bitcoin, Coins And Altcoins This Year” on Amazon.
So my advise to all my readers would be to not invest in bitcoin, If you don’t have complete knowledge regarding investments and laws related to investment in your country. As neither there is any central monitoring body to monitor large fluctuation in value nor there is no complaining body in India if any fraud happens to the customer. And there is a big question mark over its legality. In the end, I would just suggest you that there is little to gain in terms of money and lot to lose in interns of government crackdowns, punishments and price fluctuations.