What is Bitcoin?
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.
The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Ticker symbols used to represent Bitcoin are BTC and XBT. Its Unicode character is ₿.
How Bitcoin works?
Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money.
Once you own bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the year.
Are Bitcoins legal in India?
Even as economies like Japan and Russia move to legalize the use of Bitcoins, India, despite being at the cusp of a digital revolution is still not officially recognize the cryptocurrency.
India’s central bank, the Reserve bank of India or the RBI, which regulates Indian rupee, had earlier cautioned users, holders and traders of Virtual currencies (VCs), including Bitcoins.
“The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities,” the central bank had said.
However, the central bank hasn’t unequivocally banned Bitcoins in the country. But before investing in Bitcoins think of that even if you lose the money in bitcoin it should not affect your economic.
How can I invest in Bitcoin in India?
To invest in Bitcoin in India, there are three ways including
Buy Bitcoin (BTC)
The first and most preferred way of getting bitcoins is buy them. You can buy Bitcoins from numerous Bitcoin exchanges and websites.
Either, you can do mining by yourself or You can invest in a mining company and start earning profits. However, it is way too costly.
** Don’t Know about what is Bitcoin Mining? Learn from here What is Bitcoin Mining and Bitcoin Miner?
Trading in a cryptocurrency is an ideal way to earn money with Bitcoins. You can trade in Bitcoins by using Bitcoin Exchange, Poloneix Resources and Information, Trading BTC USD, and many more.
How to buy Bitcoins ?
In India, currently Zebpay and Unocoin are the two best apps. According to Zebpay , daily more than 2500 people opening account. That is incredible feat . You can buy bitcoins through IMPS/NEFT/RTGS from an Indian Bank Account. Current price Rs.1,55,564.
Alternately you can buy Bitcoins from International Exchanges like CEX.IO,Lake BTC , HitBTC , VirWox using your Credit Card / Debit Card / Wire Transfer / Paypal / Skrill . Price 2150$ ::== Rs. 1,35,000 approx.
To create account you need the following documents :-
For verification, You need to upload following documents-
- Pan Card copy
- Address proof copy( Aadhar card or Driving Licence or Passport )
- Bank details
- Phone number
Once your verification is done, your account will be activated.
What are the limitations of Bitcoin?
With all the benefits that bitcoins offer, there are some limitations as well.
- Although, over 100,000 merchants and vendors accept bitcoin as payment, a large share of vendors/merchants around the globe still aren’t aware of bitcoin.
- Since, there is no regulation the value of bitcoin fluctuates a lot. Investing in them is feasible only if it is a long term investment.
- If you lose the key to your wallet or forget the password to your account, you would not be able to get those bitcoins back and that amount of bitcoins will be frozen as no one would be able to use them.
- If you are mining bitcoins, you should ensure that the power consumption cost is not more than the reward bitcoins that you would be getting after solving those mathematical problems. For example, if you use a computer that uses a lot of electricity but is not able to mine enough bitcoins, you will be spending more than you are earning.
Final Conclusion and Important notes:-
cryptocurrency is still not legalised in India. Investing in it is really a risk factor. According to our view it is also not right time to invest in bitcoin, because BITCOIN is really in top peak now. It will suck all your hard earned money for each single coin. So you can wait still it come down. Even though you are ready to take risk, please be aware that there are lots of cheaters around you to cheat you in the name of Bitcoin. So be careful while you are investing.
Thanks and sources from Quora, Wikipedia and Economic times.
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