What is Bitcoin and how it works in India 2020? – Raghava Rao
Bitcoin also is known as BTC is a cryptocurrency. It is one of the earliest forms of cryptocurrency in the world. BTC is the most famous cryptocurrency in the world with more than 1lakh merchants accepting across the world. It is a form of digital currency that is decentralized meaning there is no central bank or single administrator, It is considered to be more secured than actual money in circulation as it uses blockchain technology, which uses cryptography for transactions from peer to peer bitcoin networks without the need for intermediaries.
Cryptocurrencies can be classified as digital currency, virtual currencies or alternative currencies. Bitcoin is the first of its kind virtual money that was developed in 2008, but the use of it started in 2009 in the mainstream. subsequently, there have been many cryptocurrencies that were developed like Etherium, Dash, Litecoin, Ripple, etc. Each having its own advantages.
In general, we know that Bitcoins are not administered centrally or any regulating body. Every country has its own views on Bitcoins some countries like Afghanistan, Algeria, Bangladesh, Bolivia, Pakistan, Qatar, Saudi Arabia, and Vietnam, etc have banned Bitcoins while Countries like the USA, Canada, Australia, Europian Union, etc have maintained a bitcoin-friendly stance.
Is Bitcoins legal in India? Bitcoins are gaining popularity slowly and steadily for a long time. After demonetization hit along with the government push to move towards a cashless economy many investors and common people are curious to know more and get on board. However, The legality of bitcoin is neither denied or approved by the Government of India. RBI has banned the use of cryptocurrencies in April 2018 and from then there been a case going on, recently the Supreme court of India has struck down the ban on cryptocurrencies on 4 March 2020.
The current status of Bitcoins in India is that the government has to revise its proposal on legislation, this will give much boost to Cryptocurrency platform in India.
Bitcoins are totally safe and easy to use as they use blockchain technology. It is one of the safest and secured currencies in the world and widely used one with many tech giants like Microsoft, Expedia, KFC, Burger King, etc are accepting Bitcoins for transactions.
Bitcoins in India are accepted by more than fifty merchants like Sapna online, Techdoc365, Flight shop, Dharawad international school, etc. You can know more about this article. You can totally trust bitcoins, If you are the type of person who would keep your transaction history safe then bitcoins are going to be your best buddy.
Bitcoins can only be used through wallets, for storing and for any transactions that you would like to make. There are only two known ways of earning bitcoins i.e Mining and buying Bitcoins from actual currency.
- Mining: Bitcoin mining is the process of using computer power to crack Puzzle code that is integral to maintain the blockchain technology consistent, complete and unalterable this is what keeps Bitcoin safe and secure from hackers. As a reward, the miner gets bitcoins for every successful problem solved by the computer.
- Bitcoin Exchange through real currency: Bitcoin mining isn’t for everyone as it requires a lot of investment for powerful computers. You can’t have bitcoins as physically as they are virtual money, to buy bitcoins from Bitcoin exchanges you need to have a Bitcoin wallet to store the bitcoins that you buy from real currency or if someone gifts you. There are many popular bitcoin wallets in India like Unocoin, Zebpay, Wazrix, etc.
There is no minimum investment as such, The Investment amount totally depends on the amount that you can invest for example 1BTC is 6146 USD as of March 22, 2020. If you wish to trade bitcoins it’s easy but the investment is very high you can use many wallets that are in the market like Coinbase, Trezor, Electrum. etc. but fluctuations of prices in the Crypto market are very rapid you can gain a ton in quick succession lose a ton.
In India, for example, 1BTC is 4,62,762.67 as of March 22, 2020. To buy one bitcoin you would require around 4 lakh, It’s quite a lot of investment to trade-in Bitcoins. But you can trade with less amount by taking 0.001 BTC with websites like Olymptrade.
I hope you find this information regarding “Bitcoins” is helpful. Feel free to share it with your friends and family if you find it helpful