People have been going gaga over bitcoin for a while now. Created in the year 2009, bitcoin has come a long way in being one of the first and leading cryptocurrencies in the world. Bitcoin is a digital medium of money exchange that works mostly on encrypted codes. These encrypted codes keep the transactions secure.
How to get Bitcoins?
To buy or sell these bitcoins you need a bitcoin wallet which you can set up using any of the exchange websites online. The wallet is very much like the money wallet apps that are being used and it allows you to perform transactions using bitcoins. Already there are many countries that accept bitcoins as a form of currency. You can buy bitcoin in India too via many exchange websites that help you convert INR to Bitcoin.
Advantages of Bitcoin
The fact that it makes transactions instantly and that it is possible to transact anywhere across the globe makes it easier to conduct transactions via bitcoin. Since there is no central authority governing it, you are in charge of your money in your bitcoin wallet.
Disadvantages of Bitcoin
As nice as bitcoin sounds, there are some disadvantages attached to it. Not many people are aware of this digital currency called bitcoin. Bitcoin is also volatile and the demand for more bitcoins keeps increasing on a daily basis.
Although we have some information, it is not right to assume what we know of bitcoin is right. There are many technological advancements that are happening currently which may be making these bitcoins more secure and easier to transact.
How did Bitcoin become popular in India?
Ever Since RBI rolled out demonetization, people have been queuing up to get more bitcoins for investing into cryptocurrencies. The number of investors since then grew at a steady pace.
Is it legal to perform Bitcoin transactions in India?
The Indian government has not specifically banned using bitcoins. People can buy, sell, mine, and trade bitcoins and it is not deemed illegal. Although the Indian government had banned the use of cryptocurrencies, in 2019 the court lifted the ban on cryptocurrencies.
How does the future look for Bitcoin transactions?
Many trade analysts are predicting that the Bitcoin is still in nascent stages. The RBI has, however, discontinued all the services in banking that relates to cryptocurrencies. Some of the exchanges have even shifted their bases away from India. Regardless of the fact that Bitcoins have no central authority, to operate in India, they do require the government's backing and even the private agencies who trade require information from customers such as Bank details, Aadhaar card and PAN number to purchase the bitcoins. An association namely Digital Asset and the Blockchain Foundation of India (DABFI) has been formed for the purpose of educating people on cryptocurrencies and blockchain technology.
It is still a little early to comment on whether bitcoin will fetch profits or if it's a good investment option. Many people are definitely attracted by the bitcoin boom and it would be great if the government could pass some regulations too for protecting the investors.
As of now, we can only hope that the government lets go of its bias towards digital currencies and passes a bill so that people feel safe to perform these transactions.