In simple word, Bitcoin is a type of Money. But, it’s just not a regular money which you can be touched and felt, The popularity of Bitcoin is growing in much faster phase then any currency in the history of mankind. Bitcoin in India is catching up. In this topic Bitcoin In India, I will mainly cover:
- What is a Bitcoin
- How are they created
- Is Bitcoin legal in India
- How to Buy / Sell Bitcoin
- What is the future Bitcoin
So, Let’s start with the Basics of Bitcoin:
What is a Bitcoin?
In Few words “Bitcoin is Digital Currency” Just like our Indian Currency, but it’s created, stored and even exchanged in the digital world. Bitcoins can be exchanged for goods and services – or for other currencies – provided the other party is willing to accept them. However, You can convert it to real currency by a different way to Bitcoin. I will talk about conversion of Bitcoin into rupees latter in this article.
How are they created?
Bitcoin is created by doing complex computing and brought into existence by Bitcoin miners, and the complex algorithm can create upto 210 Lakh (21 million bitcoins) Bitcoin through miners around the globe and as per my research there are around 164 Lakh Bitcoin in the circulation as of today (15Th July 2017) that is almost 80% of maximum capacity. Which is one of the reasons the value of bitcoin is rising day by day.
Is Bitcoin legal in India?Ho Yes it is !! , Buying/selling and Exchanging Bitcoin in India is legal in India and it is not controlled by any government as of today including our Indian Government. Indian Govt. Might Soon officially Make Bitcoin Legal In India. Also, The income earned by buying selling Bitcoin needs to be declared by Individual Indian under ‘income from other sources’ where the relevant slab rate of Income Tax applies on Bitcoin, on long-term capital gains however this is not applicable. unless of course, the person is in the business of trading bitcoins, in which case it would likely be ‘business income’. (Sorce: TOI, Bitcoin sale profit is taxable? )
How to Buy / Sell Bitcoin In India
Like any currency, Bitcoin is traded which makes it very volatile currency, The value One Bitcoin In Indian Rupee is:
You can buy/sell bitcoin as per the rate above (the company you choose may have different buy and sell rate compared to the rate above). To Hold a Bitcoin you must have something called Bitcoin Wallet and each Bitcoin Wallet gives you a unique Id something like 3ESYbyY1Y5s1DgTZkwjkBSTeamCfb9FUiK (This is my Active Bitcoin wallet address, and open for donation 😉 ).
Everyone, like to invest money to earn a profit, for example, Investors invest money in Mutual Fund in India.
But Bitcoin, Is more like trading, I personally use UnoCoin in India to buy/Sell Bitcoin and as My Bitcoin Wallet in India, because they have something which is called Systematic Buying Plan (SBP) This is a more conservative approach to buying Bitcoin in small quantities periodically than spending all your money on Bitcoin at once. This technique allows you to commit to a fixed INR amount on Bitcoin on a regular schedule regardless of the price. You need to fund your INR wallet and schedule the orders below to start with SBP. This feature helps with financial discipline by averaging out your cost of buying Bitcoin.
Once you are registered with UnoCoin, You can connect your Indian Bank account and transfer fund to your Bitcoin wallet and vice-versa.
What is the future Bitcoin
In one word “Bright”, Because of the few reasons. One of the biggest reason I believe Bitcoin has bright future in India is due to a number of Bitcoin that can be created (210 Lakh), anything which has limited numbers can have high value also some people also treat buying Bitcoin as an alternative bet in times of global economic uncertainty. Don’t you believe me? Listen to Bill Gates
Please feel free to post your query in the comment below and I will be happy to answer your query.