What is Bitcoin?
Bitcoin is talk of town these days.Bitcoin is a digital cryptocurrency created in 2009 by Satoshi Nakamoto.Bitcoin was the First decentralized cryptocurrency.A cryptocurrency is a digital or virtual currency that uses cryptography for security.Cryptography is a process of converting legible information into an almost uncrackable code to track purchases and transfers.Cryptography was first used in second world war for secure communication.
LEGALITY
The legality of all cryptocurrency varies from country to country.Some country allowed their trade while some has banned.In Russia cryptocurrency are legal but using it for purchasing goods is illegal.
In India ,according to a report Reserve Bank of India says it has not given any license to operate any scheme or deals with bitcoin or cryptocurrency.India's finance minister ,Arun Jaitley has said that the government doesn't recognise Bitcoin as legal tender but last month Supreme Court asked the government to respond to regulate Bitcoin. According to some sources Bitcoin Regulation is expected to come to in 1st quarter next year(2018). Till Bitcoin regulation arrives every Bitcoin Investor is investing on its own calculated risk.
HOW BITCOIN WORKS
Bitcoin and other cryptocurrency works on system called Blockchain. Blockchain is a public ledger that records Bitcoin transaction. Let us understand it with a example, When a payee X sends Y amount of Bitcoin to reciver Z the Blockchain broadcast a message saying Y Bitcoin should be deducted from X wallet and Z's amount should go up by same amount.
In order to perform transaction on the Blockchain you need a wallet each wallet is protected by a public and a private key. When X sends Bitcoin he Broadcast a message encrypted with private key which only X knows and transaction is cross-checked by decoding message with public key of his wallet . All these task is performed by Blockchain technology.
BITCOIN VALUE AND REGULATION
Bitcoin values varies daily; you can check at coinmarketcap to see today's value. Bitcoin will stop being created when it reaches 21 Million coins ,which will be around 2040. Till now 16 Million coins has been created. Due to limited amount of Bitcoin its price is increasing daily and experts says, its price will reach 1 Bitcoin will be worth 1 crore after 4 -5 years.
Bitcoin is unregulated and completely decentralized. There is no national bank or national agencies governing it.
WHY BITCOIN IS CONTROVERSIAL
According to government officials all cryptocurrency are beyond their control.Therefore, criminals can buy millions of dollars of Bitcoin and could move money outside without their knowledge.According to some media reports involvement of criminals has skyrocketed Bitcoin price.
On 28 Apr 2013 ,1 Bitcoin was of 135 US Dollars and on 29 Dec 2017
1 Bitcoin is of 15,097 US Dollars, it has increased almost 111 times of its price in just 1706 days. For example if someone invested 10,000 ₹ in Bitcoin in 2013 , Now he will be having 11,10,000 ₹. No stock market share has increased with such a rapid speed.
BITCOIN EXCHANGES IN INDIA
1:UNOCOIN-https://www.unocoin.com
Unocoin has mobile as well as web wallet
2:ZEBPAY- https://www.zebpay.com/ Zebpay has only mobile wallet for both android and Ios. Use code REF26593923 to get free Bitcoin of ₹ 100
3:COINSECURE-https://coinsecure.in/
4:KOINEX-https://koinex.in/
Use the provided links to be safe from scams and to reach original site. While downloading apps from google play beware of fake apps,it can lead to scam. To my knowledge UNOCOIN is best which I use.
