Bitcoin, are actually not coins but a kind of alternative currency that only exists in the digital domain. It is protected with layers of encryption and are mined digitally only. Bitcons are freely transferred from one user to another without an intermediary as it’s an open source software. Therefore, it means that no person, or company, or country owns this network.
Since our current government is hell bent in a cashless economy, digital cryptocurrency has made its presence felt in India. Right after the demonitization drive by the current government, Bitcoin exchanges in India have witnessed a rise in the user base by upto 250 percent.
Where can you purchase these?
Bitcoins are mined using exclusive programs running on any individual’s computer that works to decrypt the algorithm, which in turn uncovers the code for each coin. Presently, only 16.8 million or 80 per cent of all the bitcoins have been mined. In India, one can purchase the Bitcoins through these 11 trading platforms such as Unocoin, Zebpay, Coinsecure, Coinmama, LocalBitcoins, Bitcoin ATMs.
Returns on Bitcoin investment
Till now the RBI has not recognized the cryptocurrency, but that does not deter the citizens of India from using this currency. Post the demonitization drive, Bitcoin trading company Zebpay witnessed 25 percent rise in this currency. Another company Unocoin, has seen three times increase in its user base to 1,20,000 post demonitization.
Bitcoin has been surging upwards currently and has created a record high. In rupee terms, it recently touched Rs. 8.6lakh unit. Hence, it has become one of the options for investments presently.
Understanding the risks related to bitcoins
If you are not sure of the risks that come with these cryptocurrencies then you shouldn’t invest in them without fully knowing the details. Anonymity and lack of an authority makes it highly susceptible to cyber attacks by the hackers.
Moreover, bitcoins are kept in a digital wallet which is connected to your phone or computer. One needs to keep the password and username very confidential to keep the hackers at bay. The passwords are irretrievable, so if you are unable to access your wallet, your entire bitcoin balance becomes worthless.
Balance transfers of Bitcoins
In the same way, the balance transfers of Bitcoins are irreversible as once it’s stolen by hackers no one can recover it. Apart from this, there are a lot of fake currencies in the market these days. Before mining them, check for the underlying projects, market cap and past performance. Ultimately, always be careful of the agents selling these currencies. Only work with those who are registered on bitcoin.org website.
In conclusion to this, we recommend to start with a very small amount so that it doesn’t pinch. Continuously diversify your portfolio by investing in other assets as well. Even if India hasn’t accepted bitcoin as a legal currency, it has a bright and promising future. Companies are looking forward to set up infrastructures that would support payments to India as well as provide financial solutions for the country’s population which doesn’t own a bank account.