Bitcoin: All You Need to Know About This Cryptocurrency

Bitcoin has become a buzzword today. Due to its popularity, more and more people have started investing their money into it, and a large number of these people have earned impressive returns as well. However, there are still many myths surrounding this cryptocurrency.

What is Bitcoin?

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Bitcoin is a type of cryptocurrency as well as a digital payment system. It was invented by Satoshi Nakamoto and released in 2009 as an open-source software.

Bitcoins can be created through a process called mining, which is basically solving complex mathematical problems using a powerful computer (usually with a high-end GPU or multiple GPUs).

Bitcoins can also be purchased and traded for other currencies, services, and products. As of February 2015, more than 100,000 merchants around the world accept Bitcoins.

Why the Increasing Price?

Two of the biggest consuming countries, i.e. India and China have started discouraging gold imports for various reasons including liquidity improvement, elimination of grey markets, etc. Thus, Bitcoin was found to be an ideal substitute to hedge the dollar risks.
As the Chinese currency started failing against the dollar, the people started investing in Bitcoins. Similarly, in India, interest in Bitcoin peaked after demonetization.

How to Buy Bitcoin in India?

There are various Bitcoin exchanges such as Coinsecure and Zebpay that allow individuals to invest in Bitcoin currency. A person can download their apps and transfer funds into their, the exchange’s, bank account through any kind of digital payment (debit card, net banking, etc.)

Bitcoin Situation in India

The situation of Bitcoin in India is quite dicey. In fact, the central bank i.e. RBI discourages the use of virtual currencies like Bitcoins and cautions the holders and traders about the financial and security risks that may emerge through their usage.

In fact, RBI has warned that any Bitcoin investor dealing with the cryptocurrency would do at their own risk.