New Delhi. Bitcoin is a part of cryptocurrency. Bitcoin is a virtual currency. That means it is not really a physical currency. It is a virtual currency generated by computer system which is hardly recognized by any country but then it is used for trade. Its use is not illegal in countries like US and UK. At the same time, it is an illegal currency in UAE. The rules and regulations regarding this in India are a bit strange. The government does not recognize it but does charge tax on the profit made from its purchase and sale. RBI does not consider Bitcoin good for the economy.
Bitcoin is currently at the center of Indian politics. In fact, former IPS officer Ravindranath Patil has accused NCP-SP leader Supriya Sule and Maharashtra Congress President Nana Patole of using the money made illegally from Bitcoin in 2018 to fund the elections. After this, many questions are arising in the minds of many people regarding Bitcoin. We are trying to answer some of them here.
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when did it start
Bitcoin was born in 2008. No one knows who its father is. Only one name people know is “Satoshi Nakamoto”. Now it can be a single person or a group of people. There is no concrete information about this. Bitcoin was presented as decentralization and a digital currency, which is outside the control of any central bank or government. The first transaction of Bitcoin took place in 2009, when Satoshi Nakamoto mined 50 Bitcoins through the Bitcoin network and sent it to another user. Gradually its use increased and its value also started increasing rapidly. People started trading this currency due to which many people became owners of crores.
what is bitcoin
Bitcoin is a decentralized digital currency, which is based on Blockchain technology. Blockchain is a type of distributed ledger, in which records of all transactions are kept in a secure and transparent manner. It is protected by cryptographic technology and has no central authority.
current situation
Today Bitcoin has become a popular investment instrument around the world, and its value fluctuates constantly. Bitcoin touched a historic high of around $20,000 in 2017, although its value subsequently declined. Nevertheless, Bitcoin has made its mark as an alternative currency that is now used by investors, traders, and even some countries. It is also being used as legal tender.
bitcoin in india
Bitcoin started becoming popular as a digital currency in India in the 2010s. Its early users were technocrats and investors, who saw it as an innovation and alternative investment. As the popularity of cryptocurrencies increased, interest in Bitcoin started increasing in India too.
legal status
The legal status of Bitcoin in India has been controversial. The Reserve Bank of India (RBI) tried to ban cryptocurrencies in 2018, but the Supreme Court lifted the ban in 2020. After this the cryptocurrency market gained momentum in India. However, the government has not yet made any clear rules on cryptocurrency.
current situation
Many major platforms in India such as WazirX, CoinSwitch, and CoinDCX offer the facility to buy and sell Bitcoin. Bitcoin is now seen not only as an investment instrument, but some merchants have also started accepting it as a medium of payment.
government policy
The Indian government is preparing a bill to regulate Bitcoin and other cryptocurrencies. Its objective is to prevent illegal activities and provide protection to investors. Along with this, the central bank is also working on bringing a valid digital currency in the form of digital currency (CBDC).
Challenges
Uncertainty: Policy uncertainty regarding Bitcoin and other cryptocurrencies.
Risk: The value of cryptocurrencies is volatile, which can lead to huge losses for investors.
Security: Issues of fraud and hacking.
Tags: business news, crypto currency
FIRST PUBLISHED: November 20, 2024, 21:26 IST
