Bitcoin is basically an all-inclusive crypto currency and digital payment scheme called the first decentralized digital currency since the coordination works without a central repository or single proprietor.
It was devised by an anonymous programmer or a group of programmers, under the name Satoshi Nakamoto and made public as open-source software in the year 2009.
The system is peer-to-peer, and dealings take place between users directly, without a mediator. These transactions are confirmed by network nodes and documented in a municipal distributed ledger called a block chain.
Substituted for other currencies
In addition to being generated as a repayment for mining, bitcoin can be substituted for other currencies, goods, and services. As of February 2015, more than 100,000 merchants and vendors now recognize Bitcoin as a form of payment. Bitcoin can also be held as an investment.
Unlike conventional currencies, crypto coins are not created by a fundamental authority like a bank or a conglomerate. It is a mathematical formula. These coins are produced by extremely high-tech computers, called ‘mining rigs’, that decipher intricate math problems to get hold of these virtual currencies.
Crypto currency mining rig
A classic crypto currency mining rig runs round-the-clock, its presentation and performance depending on the high-end graphics cards and the use of cooling systems. This is not an inexpensive proposition at an average 3 lakh INR per machine. All the same, several online dealers as well as individuals are putting in money in these machines to mine crypto currencies.
A Chandigarh-based online retailer, who calls himself Letsmine, is one such ‘miner.’ He has put together and sold 90 mining rigs through eBay at a base price of Rs 3,00,000. Each. This has been happening since the past one year, with the company assuring its client base that their ventures can be got back within 8-9 months.
Growth in Bitcoin sales in India
There had been an exponential growth in Bitcoin sales in India after Narendra Modi confirmed the demonetization policy. Since then, Indian Bitcoin trades have received a lot of grip in the past few months with more than 1 million active crypto-currency users.
Because of the rise in popularity, techies like Saket Nalegaonkar have set up processes which enable them to build services around it. The 28-year-old Internet-of-Things engineer spends his additional time traveling all over the country aiding devotees set up rigs for mining. He then charges his clients on a monthly basis, fees for maintenance and upgrades.
Companies such as Hashflare, Genesis, and Bitconnect, have also arranged farms, which, on a whole, mine crypto currencies for all those interested individuals who are not able to do so on their own because of lack of machinery. All this, of course, for a small fee.
This is termed as cloud-mining.
Due to the explosive surge in the Bitcoin values, even real estate developers want a piece of the action.
Of course, due to the lack of rules and regulations, the Reserve Bank of India (RBI) has issued several statements, warning consumers and clients about the risks and hazards associated with virtual currencies.
There is a regular rise in popularity for Bitcoin