WHAT IS BITCOIN:
Bitcoin is so much in news these days. Many people have been benefitted by investing in it and has earned handsome amounts of money. Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify and the transfer of funds, operating independently of a central bank. Bitcoin has become a hot commodity among speculators. It is basically a form of electronic cash without a central bank or single administrator that can be sent from user to user on the bitcoin network without the need for intermediaries. Bitcoin was invented by a group of people under the name Satoshi Nakamato and was released as open-source software in 2009. It is highly criticised for it’s use in illegal transactions, high electricity consumption etc. 1 Bitcoin equals 4,69,155.68 Indian Rupee.
WHY TO INVEST IN BITCOIN:
- Cryptocurrency market is growing at an exponential rate, therefore, the earlier you get acquainted to it, the higher your chance are of benefitting from it’s future development.
- This business keeps growing with each passing day. You get a high return on investment thus you will never be bored with this.
- You can buy coins or invest in it when the market prices are low and sell them as soon as the market prices increases. Thus it is a direct benefit to you. You can start small and dream big.
- One can diversify it’s investment portfolio across multiple assets such as bank deposits etc.
IS INVESTING IN BITCOIN USEFUL IN INDIA:
The Reserve Bank of India has issued many notifications for warning citizens of the country for not investing in cryptocurrencies. It has barred Indian banks from serving cryptocurrency exchanges regarding various risks associated with dealing with such virtual currencies. Bitcoins are rival to government currency and may be used for black market transactions, illegal activities or tax evasion.
They are entirely digital hence at a high risk from hackers, malwares etc. If some external authority get access to bitcoin owner’s computer, he could transfer the stolen bitcoins to other accounts.
Some fraudsters or scammers can sell false bitcoins which can cause a huge lose to the owner.
Bitcoin market values can fluctuate everyday which may benefit the owner or can cause a heavy loss as well. Thus, the market is very unpredictable and is under high risk.