Does bitcoins work in india

All transactions are communicated to the public network and indexed for future verification. Buyers and sellers remain anonymous, as the ident i f ication numbers include no personal details.

Is it safe to invest in cryptocurrency from India?

Early adopters, such as Mahin Gupta in Ahmedabad, have gained hugely. Gupta now runs a trading platform called buysellbitco. At the beginning of April this year, Gupta had 20 unfulfilled Bitcoin orders, as none of his contacts - some 60 people in India and the US - were willing to sell the coins.

Most of the users are individuals and want to explore the possibilities of an alternative investment opportunity," says Nilam Doctor, an Ahmedabad-based software professional who has invested in Bitcoins and also developed an online trading platform for the currency, rbitco. No e-commerce websites in India accept Bitcoins, but many Indian enthusiasts use the payment system for trade of goods and services from overseas websites.

Many online stores offer discounts for Bitcoin payments to increase their coin holding for future gains. The huge demand for Bitcoins in India has largely been from speculators hoping to gain from the rising value of the currency. How Bitcoins Are Minted In a traditional economy, a central authority issues currency. But Bitcoins can be created by anyone by mining. It's a bit like digging for gold. Bitcoins are small blocks of data hidden in a huge amount of irrelevant data.

To get Bitcoins, one has to take the entire chunk of data, rearrange it, and process it through a set algorithmic functions - in other words, 'hash' it - until the desired result is found.

Legality of bitcoin by country or territory - Wikipedia

The first person to find it owns the block - currently 25 Bitcoins. Luck plays an important role in solving the 'puzzle', or rearranging the raw data into the pattern that yields the right result. You don't need to be a geek to mine. The software, freely available, does everything automatically. What you do need, though, is powerful hardware and money to pay for the power the machines consume. Nilam Doctor, Ahmedabad-based software professional and Bitcoin investor, has developed a trading platform for the virtual currency. As mining activity increases, and as more coins are discovered, the difficulty level of mining rises.

Going back to our gold analogy, the more gold we mine, the harder we need to work to extract the remaining gold. In the early days of Bitcoins, the puzzles were easy enough for even personal computers. Until recently, Bangalore-based Bitcoin enthusiast Benson Samuel mined the currency using a botnet, or a network of computers that run applications. He is referring to graphics processing units, or computers designed to run graphics-heavy applications such as video games.

He also used personal computers. I know a lot of gamers, which helped," says Samuel. But the rising value of Bitcoins has prompted miners to use powerful computers. The puzzles have become more difficult, too, to control the number of coins that are generated.

So low-powered computers now take longer to win a block, which means higher electricity costs. Though few governments have formally acknowledged Bitcoin and Bitcoin trading, the fact is demand for it is soaring. There are many questions being asked about Bitcoin and its future. Zebpay was started in late Currently, Zebpay has a total of over 4 lakh , users who use the app to buy, sell, store and spend Bitcoin. Around 1 lakh , new users are added every month and the company aims to touch a turnover of Rs 1, crore by end of the financial year. The devaluation of currencies, especially the US dollar and the grim global economy are some reasons why there is demand for Bitcoin.

More than that, Bitcoin was designed to mimic precious metals, and its supply is kept limited by design — only 21 million bitcoins will be available. The demand is increasing year on year due to two reasons: The early adopters are experimenting with, and using Bitcoin. For instance, freelancers in India are accepting payments in Bitcoin.

The second reason is that people see this currency or technology as times more revolutionary that any currency or payment network that ever existed. I believe that more people will use bitcoins in future, so I buy bitcoins and stock it. The buying rate as of late March is approximately Rs 87, for one Bitcoin and the selling rate is approximately Rs 85, The price changes every second.

You can buy a fraction of a Bitcoin. For instance, you can buy Bitcoin for Rs or Rs 1, People accept the fact that blockchain powers Bitcoin and that it is set to change the way financial institutions work. It has none of the advantages of a Bitcoin blockchain, which is a public ledger powered by virtual currencies. You could think of blockchain as a public Internet with the participation of many players.

The private blockchain is like a company intranet. But having a blockchain without Bitcoin is a misnomer — we believe you cannot have one without the other. R3 is a big consortium and a private blockchain. The consortium is supported by bankers. It is not blockchain and it has got nothing to do with virtual currencies.

The merit with RBI is that it considers blockchain to be an interesting technology. There is a wait and watch approach — it is waiting for the proliferation to happen, and to let the technologies develop. They have also issued two press releases. They say that there are legal and technical risks involved.

Here’s how you can start with Bitcoin investment in India

They are concerned about misuse of Bitcoin. The technology is not ready. It is not illegal to buy and sell bitcoins in India. There is no law in India declaring it illegal.

How Does Bitcoin Work?

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