Have you ever heard of Bitcoin- the currency that is supposed to leave behind the concept of printed exchange in just a few years? If not, then you have come to the right page! This post is going to give you a fair idea about this ‘global giant’. However, before we start, you should know, what exactly digital or crypto currency is.
We all know that currency is a system of money used in dealing with buying and selling products. But, to add to your more knowledge, in early 20th century, there was no existence of governed currency. Different banks used to issue their own legal tender, which was backed by neither any central bank nor any Govt body. Then, a number of reformations took place and printed currency paved in the scenario. Nevertheless, in the last few decades, with the advancement of technology, the concept of virtual currency has ushered in and made all the transactions easier as well as simpler. Using credit cards, debit cards, net banking and the lately introduced money wallets, people can now complete any kind of transaction just in a jiffy!
Now, the question arises, being familiarized with printed currency since ages, can people survive without it and welcome the virtual prevalence? The answer would definitely be a big ‘yes’!! As we have already seen how keenly people had accepted digital transactions after the must controversial ban on the big currency notes last year. People have now become much savvier with virtual transactions and can now easily get through the vibe.
Digital currency-
In layman’s language, ‘virtual’ means something that doesn’t have tangible existence, but is still made to exist through software. Let’s consider your mobile wallpaper; do you really think, the dashing, stylish and funky picture you have on display as your wallpaper has lesser importance than its printed format? Obviously ‘No’! Probably, your children would never even know about printing pictures ever! So, why do you still give it a second thought while dealing with digital currency, especially when it has every potential to make your life better, smarter and superior?
Bitcoin-
Let’s come to the core point of discussion. What is Bitcoin? Bitcoin is a digital or crypto currency used to exchange money without involving banks or any financial body. The technology used in Bitcoin transaction is Blockchain. Blockchain is nothing but an open ledger accessible by the public. Let’s consider an example to shed more light on the fact. The old method of transferring money is involving a third party holder. Suppose, a person wants to transfer INR 50,000 to a person in Australia. For this, he has to take recourse to any bank or a third party along with paying a considerable amount of commission. Then again, he has to wait for 2-3 days for the entire process to get over. On the contrary, in the Blockchain system, he can transfer the amount within a fraction of time without paying any commission.
Suppose, ‘A’ is transferring money to ‘B’, an open ledger will be shown publicly on the Internet stating the amount of money and the Bitcoin address (34 alphanumeric characters) of both the persons. No detail will be revealed except for the addresses. To make the transaction successful, a ‘three-way’ confirmation is needed by the Bitcoin miner. So, it’s purely secured an operation without involving any third party or bank.
Origin of Bitcoin-
Well, to add to your interest, the origin of Bitcoin is still a mystery. Bitcoin, for the first time, was launched by Satoshi Nakamoto in the year 2009. Then, after being adopted by quite a few enthusiasts, Nakamoto happened to drift off for reasons still unknown. But, as they say, great inventions have their own internal logic and Bitcoin was no exception in this regard.
It was on 22nd May, 2010, Laslo Hanyecez, an American programmer, bought a pizza from Papa John’s using 10,000 BTC (which now equates to roughly $20 million), when the technology was just a year old. Now, 22nd May is widely celebrated as Bitcoin Pizza Day to memorize the first real-world transaction with the currency.
Nakamoto had defined that 21 million is the maximum amount that can be generated as Bitcoin and with 17 million Bitcoins already in the market, the concerned algorithm can only produce 4 million more.
Bitcoin legalization-
Some countries like Japan, Australia and Russia have already legalized Bitcoin as their main currency. In India, it is almost like hanging in the air, as dealing with Bitcoin in the country is stated as the user’s own risk by the Government. Nevertheless, earning from Bitcoin is taxable in India.
Should you invest in Bitcoin?
Till early 21st century, stock market used to be considered as nothing but gambling by the common people. However, with Sensex reaching 20,000 index, people started investing in the stock market like never before. Nowadays, even the small investors from rural villages are thinking beyond the bar and have happened to invest in the stock market as well as several mutual funds. People who were confined in the sheer barrier of LIC, PPF and Bank FD account have started treading towards smart investment options like stock market and equity share.
Do you know, if someone in your family had bought a share of around Rs. 10,000 in share market around two decades ago, you would have become a millionaire by now? Sounds exciting? But, this is the fact!
Always remember, “early bird catches the fire”. Bitcoin and other crypto coins like Etherium, Dash, Litcoin etc. are in their early stages. As of now, the price of one Bitcoin is $3,000 or INR 2, 00, 000. Just 3 months back, the price was only $800 or INR 62,000. So, you should take the chance of investing in Bitcoin, the real future currency, as per your risk appetite.
How to invest Bitcoin in India?
To acquire Bitcoin, you have only two options. Either buy from Exchange or Mine it. In India, we have two exchange applications, i.e, Zebpay and Unocoin. Zebpay is quite user-friendly due to its fine specifications. The process is very simple! Download the wallet from Google Play Store and then, verify your bank details, email ID, contact number and PAN card. Once done, you can deposit the desired amount of money from your bank account via IMPS, NEFT or Internet Banking. After you successfully put down the money in your Zebpay wallet, you can rock on the platform! The minimum amount you can buy or sell is INR 1,000.