We all are living in a generation that we also call the Digital generation. Earlier the transaction was only done in physical form but these days the way of doing transactions has been changed.
Now we aren’t required to carry cash in our pocket to purchase anything or make any payment. You may also have heard about Cryptocurrency and Bitcoins as nowadays many people are talking about this. The cryptocurrency which we also referred to as a digital currency. These days the most popular digital currency is Bitcoin.
In today’s article, we are going to inform you about Bitcoin, such as what Bitcoin is, How Bitcoin works, how a Bitcoin is prepared, the price of a single Bitcoin. We are also going to inform you of the pros and cons and what Bitcoin has for beginners in India.
Table of Contents
- 1 What is Bitcoin?
- 2 How Bitcoin Works?
- 3 How has Bitcoin been Created?
- 4 What is the Price of a Bitcoin?
- 5 How are the People Earning through Bitcoins?
- 6 What are the Benefits of Bitcoin?
- 7 What are the cons of Using Bitcoin?
- 8 Is Bitcoin a Legal Currency?
- 9 Is Bitcoins Trading Illegal in India?
- 10 How to Buy Bitcoins in India?
- 11 FAQs
What is Bitcoin?
Bitcoin is a digital currency. This is the only currency that is not regulated by any Bank and Bitcoins are mostly used for making payments on Computer Networking Sites. As per the many perceptions, the credit of discovering Bitcoin is given to Satoshi Nakamoto, a Japanese resident. If we believe those perceptions then according to them Bitcoin was discovered by him in 2008 and the year 2009 it was issued as Open Source Software.
Now we understand that Bitcoin is a digital currency and it can only be used in digital form. We can’t touch or see this currency physically. If we talk about the price of a complete Bitcoin then forgetting it as a minimal part of a Bitcoin is also very costly. Investors who like to invest in Bitcoin, always purchase the Bitcoin when its price is lesser and sell it when the price of Bitcoin gets higher.
Bitcoin is the most famous currency these days in the whole world. Normally when we purchase anything through Credit Card or Debit Card then we need to pay some charges but when we pay through Bitcoin then we don’t need to pay any charges. Another related thing to Bitcoin is that it is the safest payment method in comparison to other online payment modes. It is also very secure and very fast for making transactions.
How Bitcoin Works?
Before we get to know how Bitcoin works, we should understand that most of the time Bitcoin is used to make payments on Social Networking sites. We can send and receive the money with the help of Bitcoin. We don’t need to pay any charges while using Bitcoins.
That is why most people prefer to invest in Bitcoins. To use Bitcoin, first of all, you need to create an account and after that, you can transfer the money into any bank account or any credit card from any Bank Account.
How has Bitcoin been Created?
The process behind the creation of Bitcoin is very long. The very smallest unit of Bitcoin is called Satoshi. If we speak about price then the price of a single Bitcoin is nearly Rs. 38,35,509.52 and there are 100,000,000 Satoshi units in a single Bitcoin. A single Bitcoin can be divided up into 8 decimals which are 0.00000001. Lots of electricity is used to create a single Bitcoin. These Bitcoins are created in mines and up to 300 KW electricity is consumed for mining Bitcoin.
What is the Price of a Bitcoin?
The price of Bitcoin decides on the basic formula of economics. As the price of any product depends on its Demand and Production. In the same way, the price of Bitcoin also depends on the People’s demand and its production capacity. Although there is no limit for any Bitcoin. If more people want to invest in Bitcoin when its price reaches on the higher side but when its demand gets low then its price automatically decreases. As per the current market value, the price of a single Bitcoin is nearly Rs. 39 Lakhs.
How are the People Earning through Bitcoins?
In today’s time earning money through Bitcoin is very easy and you don’t need to do a lot of hard work. To earn money through Bitcoin, always buy the Bitcoin when the price is lesser and when the prices get higher just sell the Bitcoin. Also, when you sell your product to anyone then you can accept the payments in Bitcoins. When the price of your Bitcoin gets higher then you can sell it to earn profits. Apart from it, you can get a good amount of money by mining Bitcoin.
What are the Benefits of Bitcoin?
Bitcoin is the most popular currency across the globe and there are lots of benefits of using it. Let’s know the benefits of using Bitcoins.
- You don’t need to pay any kind of transaction charges by using Bitcoins.
- You can easily transfer money through Bitcoins across the world.
- Bitcoin is the safest and fastest currency in comparison to any other currency.
- Currently, Bitcoins are not a legal currency in many countries that is why Bitcoin is also used for wrong things.
- Bitcoin is the very best option for long-time investment purposes. Because in future Bitcoin prices will get higher and when you will sell it you will get the maximum benefits.
What are the cons of Using Bitcoin?
Bitcoin has some benefits while it also has some negative points. Until now, we get to learn Bitcoin benefits and further we will know about the cons of using Bitcoins.
- There is no refund policy in Bitcoins, so if your money gets stuck in Bitcoins then there is no option to get his money back
- Many wrong activities are going around with Bitcoins.
- If someone has hacked your Bitcoins account then you can’t access your Bitcoins account until the hacker returns your account to you. There is no support team to help you.
- Bitcoins have not been approved by many countries, which makes the use of Bitcoins very difficult.
Is Bitcoin a Legal Currency?
If you ask if Bitcoin is a legal currency then the answer depends on the user location. The legality of this currency depends mainly on the location of the purpose and interest accordingly. Bitcoin is a form of decentralized digital currency, this currency is legal in many countries while there are restrictions on using it in many countries. Here is a list of a few countries that have something to say about Bitcoins.
- The government of the United States has declared Bitcoins as a commodity.
- Reserve Bank of India’s Deputy Governor has stated that currently there are no plans to make Bitcoins a legal tender in India.
- The Japanese Government has started accepting Bitcoins as a payment option.
- The Government of Bangladesh has mentioned that if anyone is caught using Virtual Currency means Bitcoins in the country, then he will be sent to prison as per the country’s strict anti-money laundering laws.
Is Bitcoins Trading Illegal in India?
It is a very tricky question as per the experts currently no law in India says that trading Bitcoins is illegal in the country or any ban on the cryptocurrency. The Indian Government is working on a Law that will regulate crypto trading in India. But if you ask whether Bitcoins is a legal tender in India then the answer to this question is NO. That means you can’t purchase anything in India with Bitcoins as the Indian government has not accounted for it as a legal tender.
How to Buy Bitcoins in India?
People who want to purchase Bitcoins should visit the Bitcoin Exchanges. There are various platforms available in India where you can purchase cryptocurrency and they all work as Bitcoin Exchanges. If anyone is planning to purchase Bitcoins in India then there are many exchange platforms available to buy this digital currency. It depends on the person as to whom they want to purchase.
Earlier it was not easy to buy Bitcoins in India as the Indian government didn’t approve the purchase of Bitcoins in the country as a legal one but now the situation has been changed. Nowadays still it is not approved by the government but also the government didn’t impose any ban on it.
If any person is planning to purchase a complete Bitcoin then the complete cost of it is around Rs. 39 lakh. But it does not mandate to purchase a complete Bitcoin as the investment can be started with purchasing a part of a Bitcoin. The minimum amount for investing in Bitcoins is Rs. 100. If you want to know the latest prices of Bitcoin then you can take the help of the internet.
Before purchasing the Bitcoins you should have verified your KYC (Know Your Customer) as it is a very important step. To complete your KYC you would be required to submit the PAN Card, Address Proof and Bank Details. Please remember that the details provided in PAN Card are of the same person of which bank details have been provided. After this, the verification process would be started and this process would take 2-3 working days. After the successful completion of verification, you can purchase Bitcoins.
After purchasing the Bitcoins you can download the Bitcoin App where you can create your Bitcoin Wallet and it will help you to store and sell your Bitcoins. As per the Indian Government, any earnings from Bitcoins Investment are liable for Tax Payment. If someone is investing for the short term then the person needs to pay 30% Tax and if it is for Long Term then it could be 20% for the capital gains.
Is Bitcoin Legal in India?
No, Bitcoin is still not a legal tender in India. You can invest in Bitcoin but you can purchase anything through it.
How to Invest in Bitcoins?
There are many Bitcoin Platforms available and you can invest in Bitcoins with the help of these platforms.
Who was the Creator of Bitcoins?
Bitcoin was discovered by Satoshi Nakamoto, a Japanese resident in 2008.
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