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A little boy barely 12 years old named Erik Finman started purchasing Bitcoin at $12 each back in May 2012. He received a $1,000 gift from his grandmother, at that time which seemed a great deal of money. Don’t have any plan what to do with that money, He took the advice of his elder brother and invested it in Bitcoin. As of the time this article was written, that boy owns about 420 bitcoins, and at today’s value, they are worth over $4.8 million which is 36,32,32,251.02 Indian Rupees
This story is impressive and leaves many asking, “What is cryptocurrency, and how does it work?” Here is a quick breakdown to help you understand the basics and what you most need to know.
Almost everyone of you at least once here the name of cryptocurrency and some of you knows about it in detail. Those who don’t know much about it definitely want to know about it that why you are here. So in this article we are going to talk about cryptocurrency in India in detail . Is it legal in India? Various types of cryptocurrency in India! Latest news about cryptocurrency in India , How you can Mine it ? How its market works ?
So, here comes the most important thing that what is cryptocurrency
What is Cryptocurrency
A cryptocurrency is a digital asset designed to work as a medium of exchange where individual coins ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure the transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
It typically does not exist in physical form (like paper money or metal coins) and is typically not issued by a governmental authorities. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.
So here everyone gets the basic idea on cryptocurrency but to know it in depth we have to discuss various other factors that will led us to understand it in a better ways . Here are those factors on which we discuss cryptocurrency.
Factors about cryptocurrency
- Types of cryptocurrency in India
- Cryptocurrency in India – illegal or not
- Scope of cryptocurrency in India
- How can you mine it
- How its market works
1. Types of cryptocurrency in India
Generally there are number of cryptocurrency in India till date. Over 2,000 cryptocurrencies listed on Coinmarketcap but here we gonna talk about some most popular over the India.
Bitcoin is the most popular cryptocurrency over the globe. Bitcoin is the most traded cryptocurrency of all time.Bitcoin (₿) is invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software.Its market cap currently stands at approximately $68.59 billion, which is roughly 51.65% of the total market cap.
Value of Bitcoin
In INR – 858127.06 India rupees
In USD – 11,470.00 United States Dollar
Bitcoin value through out the last year
Ethereum is the second-largest platform by market capitalization, behind Bitcoin. It is a decentralized open source blockchain featuring smart contract functionality. Ether is generated by Ethereum miners as a reward for computations performed to secure the blockchain. The Ethereum Classic (ETC) blockchain network lost $5.6 million to one miner following a 51% attack initially thought to be a chain split.
Value of Ethereum
In INR – 28,514.59 Indian Rupee
In USD – 381.11 United States Dollar
Value of Ethereum through out the year
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs, a US-based company. Ripple was launched in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, It is the fourth most-traded coin on Coindcx, with 456 BTC worth traded during the same time period. Its does’t have the great value as bitcoin and ethereum but it is used a lot for trading.
Pi coin is a recently launched cryptocurrency whose value is not set yet . And now you can mine it totally free through a mobile app . It is estimated that its value will be be reach 5$ till 2025 and now its try this out free .So you have to definitely try this out to know more about pi coin you can visit this.
2. Cryptocurrency in India – illegal or not
All the cryptocurrency in India are totally legal You can trade any cryptocurrency from any corner of India it is totally legal now.
Finance minister Arun Jaitley, in his budget speech on 1 February 2018, said that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses. He reiterated that India does not recognize cryptocurrency as legal tender and will instead encourage blockchain technology in payment systems.
“The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system,” Jaitley said.
In early 2018 India’s central bank, the Reserve Bank of India (RBI) announced a ban on the sale or purchase of cryptocurrency for entities regulated by RBI.
In 2019, a petition has been filed by Internet and Mobile Association of India with the Supreme Court of India challenging the legality of cryptocurrencies and seeking a direction or order restraining their transaction. In March 2020, the Supreme Court of India passed the verdict, revoking the RBI ban on cryptocurrency trade.
3. Scope of cryptocurrency in India
A country like India which has recently faced demonetization has developed great affection for cryptocurrencies in the recent past. It has been nearly six years since bitcoin made its debut in Indian Financial markets. In India, the transactions made through cryptocurrency are on the rise despite the notifications circulated by the finance ministry. This makes it clear that the upcoming future of bitcoin in India is dazzling. There are about 1548 cryptocurrencies currently operational in the market available as an alternative to Bitcoin.
On 8th November 2016, the Indian Government with assistance from Reserve Bank of India (RBI) replaced 500 and 1000-Rupees currencies from circulation, bringing 86% of the country’s money straight to ashes. The decision was taken as to crush its ever-growing dark economy and to get rid of never-ending illegal affairs related to money.
Simultaneously, this verdict, though not intentional, taught the nation of 1.3 billion people who holding cash as property. With a 7% fall in the stock market, cash scarcity and some serious adversaries faced by many people standing in the queue for exchanging their useless money, it didn’t take long to cause a nation wide hysteria.
This gave a significant setback to India’s economy and cryptocurrency, Bitcoin, in particular, which was already being used by several industries, witnessed a spike in its usage in India.
According to The Economic Times, by the mid of 2017, around 2,000 Indian investments were happening with Bitcoin on a daily routine. The digital money attracted people of India as it seemed a safer and more profitable option for investing, that lay far apart from government rules and regulations and from political and economic disturbances.
Despite being ranked as the 7th largest economy in the world with a GDP of $2.5 trillion, almost 190 million adults in India are still don’t have bank account and from the ones who have one, 50% have remained inactive for the whole year 2017-18 according to a statement by the World Bank at the end of 2018.
Now, Bitcoin, in this case, can turn out to be a great success as it provides a method of transaction and making transaction across all over the globe cheaply and securely without requiring a bank account. No doubt, as of now, more than 5 million own cryptocurrency in India some or other form which accounts for thousands of crores.
Bitcoin usage by Indian companies
In 2018, more than 500 merchants and several big companies in India, including Dell, gave an option of paying in cryptocurrency, as told by Amit Bhardwaj( Co-founder of GBminers). Of course, Bitcoin still has long to conquer before it can be labelled as ‘popular’ among Indians as most of us prefer hard cash. But the numbers are increasing day by day. As already said, cryptocurrency now holdsvaround more than 10 million users in the country.
4. How you can mine cryptocurrency in India
You can exchange your local currency with cryptocurrency you want to buy. There are several ways to buy cryptocurrency in India but you have to take these factors in your mind before you buy any cryptocurrency.
- Location – You have to check country regulations before buying cryptocurrency.
- Website – You have to check the authority of website before buying any cryptocurrency from that website.
- Price – There are different prices on the different websites.
- Payment Methods – These websites generally used debit cards, credit cards and direct bank transfer.
How to buy cryptocurrency
Online websites called cryptocurrency exchanges allow the user to exchange local currency for cryptocurrency. A person can make payments through bank transfer,debit card or credit card. One has to first register themselves with their full information, verify their identity and undertake a two-step verification process for security purposes.
Where to buy cryptocurrency
There are few websites you can use to buy cryptocurrency with negligible trading fees
Unocoin: Users can buy with any Indian bank account via online banking or NEFT and RTGS.
Coinmama: Allows users to purchase Bitcoin with a credit or debit card from almost every country. They charge a 6 per cent fee on each purchase.
LocalBitcoins: The most common method of payment is through cash deposit. LocalBitcoins facilitates the purchase of bitcoins via an in-person meeting. You have to go for this one.
Bitcoin ATMs: They allow users to buy bitcoins with cash. However, despite being convenient and assuring privacy, they have a fee of 5 to 10 percent.
5. How market works for cryptocurrency in India
A cryptocurrency based upon a ledger, where all transactions are made public so that total visibility is provided. Having a ledger based system forces everyone to “play fair” and takes away the risk of double spending.
The ledger is a list of entries in a system’s database that nobody can change without fulfilling specific conditions mention in it. Nobody owns the ledger or the cryptocurrency blockchain; instead, it’s decentralized meaning self-run and self-governed without the interference of any outside parties.
Verifying Transactions & Blockchain
Let’s say that you are interested to invest in cryptocurrency, such as Bitcoin, through a major cryptocurrency exchange website. After purchasing it, you decide to spend it. What happens now? At first, the transaction is unconfirmed, which means the transaction is not yet official, and it doesn’t become “set in stone” until it goes through a fixed verification process. Once confirmed, the transaction becomes part of a record of historical transactions in the system housed on the blockchain.
Cryptocurrency Miners verify the transaction you made and then add them to the public ledger. They use powerful super computers to solve complex math problems that are the key to these verification processes. Cryptocurrency Mining is open source, so anyone can confirm a transaction, and the first miner to solve the problem gets to add a block to their transactional ledger. This process is called the “proof of work system.”
After adding a block to the system’s ledger, the miner is given a reward for their efforts, which varies based on the cryptocurrency. For example, Bitcoin originally awarded 50 Bitcoins, but that award halves at preset times and today has decreased to 12.5 Bitcoins.
Hope this article will help you out about your confusions about cryptocurrency in India,cryptocurrency in India legal or not, how you can mine cryptocurrency in India,Scope of cryptocurrency in India. Tell us in comment section what are your views about cryptocurrency in India.