Bitcoin is creating a lot of buzzes these days. Are you wondering what it is? Don’t worry I am here to explain the basics. To start with the post, let me say it is the biggest change happening around us. All of us should be a part of this. While we will cover basics, we will also have a short look at how to buy or sell bitcoin in India.
So Lets start with a simple question
What is Bitcoin?
As the name suggests bitcoin is a coin. But it is a digital coin. Satoshi Nakamoto created the Bitcoin. You can read more about him in this link.
Check this video. a great source to learn about bitcoin.
Who controls or owns the Bitcoin?
Well, the Bitcoin community controls the Bitcoin. basically everyone who owns bitcoin controls it together. Confusing, right?
A shared ledger records the bitcoin transactions. Everyone in the community has a copy of this ledger. And when there is a new transaction, it is recorded in the shared ledger. Since everyone has a copy of the ledger they can match the records whenever there is a dispute.
How does bitcoin gets its value
The value of Bitcoin comes from the people who are using it. It has value because people using it to find some value in it. Sound strange, right?
Just think about how does any currency gets its value. Correct, because people use it. have you ever heard of the barter system?
In ancient times people used to exchange things when there was no money. For example, you could have given a sickle to a farmer in return for food grains. In those times the idea of paper currency must have been as radical as bitcoin in today’s world. Why would you exchange a real thing for a paper?
Money has always derived its value from the people who believed in it. People who will agree to give and take real things for it. So, the trust and belief of a large number of people is the real value of a currency.
Is the bitcoin supported by the government?
The short answer is no. Since the government can not regulate it they do not support Bitcoin in India. But, is it opposed by the governments?
Again the answer is no. No Government has directly opposed the bitcoin yet. They have tried to control it in various ways but have not banned it directly.
The simple reason this is not banned yet is that it can not be banned. Bitcoin transactions are between people. In technical terms, these transactions are P2P(person to person). Anybody on the internet can buy, sell, or use bitcoin. In order to ban bitcoin, you will need to ban the Internet.
Why do we need Bitcoin?
We need Bitcoin because it is people’s money. We decide when to use it, how to use it, where to keep it. If I want to transfer bitcoin to you then it just needs me and you. You can be anywhere in the world and it does not matter as long as you can access the internet. This is certainly not possible in the current system. A simple cross border transfer of money can take days or even weeks in the current system which is no match for the bitcoin.
Advantage of Bitcoin
There are many advantages that bitcoin has over other fiat currencies. Firstly, the bitcoin is free of government and bank control as transactions do not require any mediators.
Another point is that the bitcoin ledger is public and transparent.
Many countries around the world are printing huge amounts of money. This is due to economic slowdown. Due to this, the risk of inflation is looming across the world. But, bitcoin has a fixed supply and it is deflationary by design.
Bitcoin transactions are secure. If I have transferred some bitcoin to you and it is recorded in the ledger, no one can erase this record ever. This makes bitcoin very secure as there is no way to hack the system to change the records.
A bitcoin transaction is very fast. You can transfer any amount across the world within a few minutes. If we compare this to the existing system the bitcoin is way more effective.
Bitcoin in India: A revolution
By now we have read about some great features of the bitcoin but real strength of bitcoin lies in what it cab be. Bitcoin can be the world currency in the future. If this seems far fetched then read this.
A large population of the world has no access to banks. Some people living remote areas have their nearest bank miles away from them. bitcoin is safe and does not needs a bank. And so it provides a easy way for these people to transact.
Bitcoin was launched in 2008. Initially its value was very low. In 2012 value of bitcoin became equal to one dollar. In 2013 value of a bitcoin reached 100$. Very soon many businesses started to accept bitcoin. For Instance, Microsoft started accepting bitcoin for Xbox games.
Nowadays value of bitcoin is around 10,000$ for one bitcoin. It is widely accepted around the world. In many countries you can find the bitcoin ATMs. This fast paced growth has attracted people from around the world. While few see it as a true currency most people see it as a great investment. No other asset can turn 1$ into 10000$ in a few years.
How can I be a part of this revolution?
Well, it is possible to invest in Bitcoin in India, but it is not as easy as it is in many other countries. RBI prohibited the direct exchange of digital currencies. So for the last few years, it was not possible to buy or sell BTC using INR on any exchange. Even though the court has reversed this order of RBI but it will take some time before it will be possible to buy or sell bitcoin directly.
To buy or sell Bitcoin in India you have to do P2P transaction. so there are many people who hold a large quantity of Tether USD. This is a digital version of $ and prices stick to the $ value in the market. You can transfer money directly to these people and they will give you Tether USD in return.
Using TUSTD you can buy and sell any digital currency like bitcoin.
This all may sound very risky but I will tell you safe way to do this. You can easily buy TUTD in P2P mode on Wazirx. Wazirx is an exchange for digital currencies. They will allow you to buy and sell most popular digital assets without hassle. They are a new startup which is backed by Binance. Read some more about them to find out who they are and tis will give you some assurance.
The first step is to Join Wazirx so create an account first. You can easily buy and sell Bitcoin in India using Wazirx. Use the below link to sign up. Don’t buy or sell anything yet. I will do another article for the beginners with the detailed steps. But signing up should be very easy. Just go to the below link, click on signup and follow the instructions.
Please check our next article to see how you can buy and sell bitcoin in India.