Bitcoin In India || What is Bitcoin ? And What is Advantages & Downside of BITCOIN ?

 

WHO INVESTED BITCOINS ?

Bitcoin is invented by a person named Satoshi Nakamoto. Who is he? Where has he come from? What does he do? is not known by anyone. He is an anonymous person. People doesn't even know whether it's just a person behind it or it's a group of people who have invented Bitcoin.


WHY WAS BITCOIN MADE ?

The biggest reason why this was made, is the financial crises of 2008. When due to some mistake of banks, the banks crashed hence lakhs and millions of people over the world suffered loss. The banks were led to insolvency due to their own wrong decisions and the loss had to be borne by every individual and every tax payer. After that people realised till when they will be relying on banks? The founders of Bitcoins have said that the motive behind starting bitcoin is to create a decentralised system away from the banks and the government. which won't be under their control because if there's a failure on the part of the bank or the government the entire economy fails. But if there's a decentralised system like bitcoin, then due to an individual or an organisational error the entire financial system won't crash.  a centralised data base or a center one point, it's very convenient to hack and fail that system. and if we bring decentralisation, there's no one point to hack that can lead to failure. and it's generally successful.


IS BITCOIN LEGAL IN INDIA ?

There have been rumors spread regarding the legal status of Bitcoin in the country especially. Bitcoin won't be a legal tender. That means you can't be using it to pay at any shop or any restaurant. That's obvious, just like the gold coins and the properties being not any legal tender in our country. but all these things are legal and bitcoin is just one of them. Trading bitcoin is 100% legal in our country, it's legal to even exchange it. It's just that it can't be used as the payment system.


HOW TO BUY BITCOIN ?

If you want to buy bitcoins friends, or wish to trade them or invest in them, then the easiest way to do so is to use a cyrptocurrency exchange system. Exchange services are such websites, apps or platforms where you can convert rupees into bitcoins or bitcoins in rupees. India's largest exchange service is Zebpay and world's largest is Coinbase. These two are the largest and hence the most secured and trusted too. If you want to buy bitcoin so I would recommend you to use Zebpay if you are residing in India or Coinbase if you in the other part of the world. The good part of Zebpay and Coinbase is that not only bitcoin but you can exchange your money in the other cyrpto currency as well.


WHAT TAXES ON THERE BITCOIN ?

Short term capital gains and long term capital gains- The same taxes just like your other assets. Whereas most of the countries are accepting bitcoin worldwide. In USA they are regulated just like another stock. In Japan bitcoin is a legal tender and can be used to pay anywhere In Germany you can even buy a house with it and in Switzerland you can even pay the taxes! But there are some countries who have not accepted Bitcoin, like in China, these exchanges are banned but the mining are still happening In China. In Russia there's a flip flop policy, they have said yes sometimes and sometimes a no.


ADVANTAGES OF BITCOIN -

The biggest advantage of bitcoin over the physical currency is that is not under the control of any central bank. So, if you are sending bitcoin to bitcoin money to anyone then there's no middle man here, hence the transaction phase is very less. and naturally if there's no central bank so fluctuating the value of bitcoin is not in the hands of any Government or Bank. The biggest advantage of Bitcoin is on International Payments. There are charges, currency conversion charges, remittance fee which you have to pay the bank to transfer your money These charges you don't need to pay here. The other big advantage behind using Bitcoin is the Block Chain technology which is a financial sheet where every bitcoin transaction is recorded and secured cryptographically. and whether bitcoin is going to get successful in the future or not, Block chain is going to be successful and it's still is. Many government and banks have already started using block chain.


DOWNSIDE OF BITCOIN -

The reason for the disadvantage of bitcoin is Decentralisation too. As there is not central authority to control it, it's price keeps fluctuating. It's price fluctuates based on the number of people investing and taking out from it. In future, whether the prices will rise or get low is very difficult to predict. The biggest downside which still prevails is that the transaction cost and time is still high and payment is also not very easy. But these thing are slowly getting better, transaction time is improving as and when there's an update in Bitcoin. the transactions of bitcoin is recorded on the block chain however it is anonymously recorded. Which is not possible with the other Currencies like rupees, dollars, gold's transition. Earlier corrupted people used to transact using rupees and dollars and now using Bitcoins, so there isn't any significant effect.

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