, Cryptocurrency world, its history, trading, future, and legality in India and other countries in brief. Its gonna a long article, so tighten your belt and without wasting any more time, lets start now!
Introduction To Cryptocurrencies-
First of all, you must know what the heck this cryptocurrency is. Cryptocurrency means – “A digital and virtual currency” , that cannot be seen, transfer or handled physically. This type of currencies is limited only to Internet and you cannot withdraw them to your physical wallet or to your pocket. Its a type of Internet money. If there would no Internet, no cryptocurency would have been exist at all. there are thousands of cryptocurrencies available in the market and bitcoin is one of them. Bitcoin symbol is BTC , just like USD and INR. In any country, central agency (RBI in India) regulates the total number of notes release. It is not limited and he can print as many notes he can. But in cas eof bitcoins, its supply is limited and total number of bitcoins cannot be more than 21.1 millions. As of now, total of 16mn are available in the market. Now, you now know what is called cryptocurrency and what a bitcoin is, now come back to bitcoin.
History of Bitcoin-
Bitcoin was first introduced by an american programmer Satoshi Nakamoto in a research paper namely “Bitcoin: A Peer-to-Peer Electronic Cash System” on 31st October 2008. After that, no one know what happened to Satoshi nakamoto and he disappeared surprisingly, though many one claims to be himself. Bitcoin was launched in the market on 3rd January 2009. At the time of launch, 1 BTC was equivalent to 6 Indian Rupees only. In 2009, its demand was very very poor as people did not seem comfortable with its usage as it was fully new evolution at that time.
System Of Bitcoins And Control-
See, no one actually control the bitcoins! It is a completely decentralized currency. Suppose, you make a transaction of Rs. 5000 to transfer funds online via your bank’s netbanking. If transaction fails, you rush to your branch or call the customer support. They assure you with your hard-earned money. But in case of bitcoins, no any person or organization actually have control over it. Now, one question arises is, if no central agency owns the system, is my money safe? the answer is YES! . Actually, bitcoins are used worldwide and there are thousands of computer programmers, who verify each and ever transaction broadcasted by you in the blockchains. (a blockchain is a 2MB database which has information about the transaction.) Such programmers are called miners, who are also responsible for mining or production od BTC.
What if transaction Fails?
So, if any transaction fails, (highly unlikely) it come into notice of one of such programmer and he pins it as failed. There is very high competetion among miners to verify BTC transactions. In return, they are being rewarded with free bitcoins for their work. As of now, We skip the technical part of production of bitcoin as it is bit complex. (you can always Google). We will talk more about its legality in India and government stand regarding its regulation in later sections. Y
Rate And Worth Of BTC-
As said, the price of 1 BTC was equal to 6 INR only in 2009. In June 2009, 1 BTC=$0.0001. As time passed, people got attracted towards this special currency and started using it like a normal one. And we all know, if anything’s quantity/supply is fixed and demand increases, its worth surges. Same happened with BTC as its total supply was limited to 21 millions only. In june 2010, 1 BTC= $0.07! Similarily, in 2013 it crossed 100 USD mark. –
- June 2011 1 BTC = 15 USD
- Jun 2012 1 BTC = 7 USD
- June 2013 1 BTC = 100 USD
- Jun 2014 1 BTC = 600 USD
- June 2015 1 BTC = 220 USD
- Aug 2016 1 BTC = 594 USD
- Nov 2016 BTC = 726 USD
- March 2017 1 BTC = 1040 USD
- end of April 2017 1 BTC = 1353 USD
- end of May 2017 1 BTC = 2345 USD
- August 2, 2017 1 BTC = 2881 USD
- November 29, 2017 1BTC = 11,331 USD!
You can see how its value surged in May 2017 and 2013 as well. Many specialist were predicted it would touch the $2000 mark in 2017 and it did. You can see the graph below- Source: Knoema.com
Is it really that interesting?
Here is a small but real incident- A men from Norway bought bitcoins worth $27 in 2009 and he forgot about it. When BTC was in news due to its value, he suddenly analysed that isn’t he owns something like that? He immediately recovered his bitcoins. He got amazed by seeing that his bitcoins worth was now $886800!
Now I believe you know at least something about Bitcoins. I will talk about uses of BTC, its trading, its future, legality in India, its competItors, and Govt Taxes in India here- Bitcoin-2 If you have any questions or doubt about bitcoins, comment box will be glad to have you! Take care!
Also see- Gmail dot trick