Hello, Friends Today I'm going to explain to you about bitcoin, bitcoin is legal in India? Advantages and disadvantages of bitcoin, and which organisation controls bitcoin, and who invented bitcoin and why? After reading this you expert in all about bitcoin
What is Bitcoin? Is Bitcoin an asset?
If I have to sum up Bitcoin in very fewer words, then it's a Digital asset or decentralised.
Digital Currency By digital asset I mean,
The asset is something which has a value. Like your house, your car, your gold. If you are going to sell these things in the market, you will get money in return of it as people know that these things possess value. Bitcoin is of such kind, it's an asset which you can sell in exchange for money.
This is a digital asset because unlike your gold, car and house,
Is Bitcoin physically present? Is Bitcoin A Digital Asset?
it's not available physically with you. You can't touch or see it. It's stored in the hard disk as it's digital. It's a currency as you can use it as a payment system. If you want to pay anyone across the globe you can do so through bitcoin.
Which Governmental organisation controls bitcoin? Is Bitcoin under any authority?
It's not under any authority's grip or not any governmental organisation can control bitcoin. Just like our other currencies, rupees, dollars have the central authority on it.
The rupee has the authority of the Reserve Bank of India. Reserve Bank of India decides what is going to be the value of a rupee and how many notes can be printed. This is not the case with Bitcoins. The value of a Bitcoin is decided based on the number of people using it.No person or an organisation can control Bitcoin or can do so in the future. Hence, no one can suddenly declare the demonetisation of Bitcoins overnight.
Who invented bitcoin?
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 don't even know whether it's just a person behind it or it's a group of people who have invented Bitcoin.
Why made bitcoin? reason behind bitcoin
The biggest reason why this was made is the financial crisis of 2008. When due to some mistake of banks, the banks crashed hence lakhs and millions of people over the world suffered the 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 taxpayer.
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.
there's no one point to hack that can lead to failure.and it's generally successful.
Can we use bitcoin in India? Is bitcoin legal in India?
The truth is my friends, that during the budget 2018, our finance minister, Mr Arun Jaitley has said that...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 Can You Invest in Bitcoin?
If you want to buy or invest in bitcoins, friends or wish to trade them or invest in them, then the easiest way to do so is to use a cryptocurrency exchange system. Exchange services are such websites, apps or platforms where you can convert rupees into bitcoins or bitcoins in rupees.
How to buy Bitcoin In India?
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 are in the other part of the world. It's very easy to use. Breezeway in android or iPhone and here you can see the interface. It's very easy to use. You can click on buy or sell and easily convert your rupees. For that first, it will ask you for verification. After your verification, you can start the trading. Here you can also see the fluctuations in the price of bitcoin. The good part of Zebpay and Coinbase is that not only bitcoin but you can exchange your money in the other cryptocurrency as well. And the difference between other cryptocurrency and bitcoin will take a lot of time, so I'll make a new video to help you understand that.
What taxes are there on Bitcoin in India?
And if you are trading on bitcoin then taxes are levied just like on the other assets in our country. Short term capital gains and long term capital gains- The same taxes just like your other assets. But one point I would like to bring here is that the Government of India has not yet cleared the stand for bitcoin. They are going to introduce all the rules and regulations towards the end of the year. based on the legal framework they would want to make for it.
Most of the Countries are Accepting Bitcoin
Whereas most of the countries are accepting bitcoin worldwide. In the 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!
Countries Are Not Accepted Bitcoin
But there are some countries who have not accepted Bitcoin, like in China, these exchanges are banned but the mining is still happening In China.In Russia there's a flip flop policy, they have said yes sometimes and sometimes a no.I'm sure India's policy that's going to come towards the end of the year will accept Bitcoin just like the other countries.
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What is the biggest Advantage to invest in Bitcoin In India?
The biggest advantage of bitcoin over the physical currency is that it 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.
Bitcoin Advantage on International
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 Blockchain 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, Blockchain is going to be successful and it still is. Many governments and banks have already started using blockchain. I won't be going in-depth of this, you can research and read about it yourself.
What is the Biggest Disadvantage of Bitcoin
The reason for the disadvantage of bitcoin is Decentralisation too. As there is no Governmental or central authority to control it.
*Its price keeps fluctuating. Its price fluctuates based on the number of people investing and taking out from it. The fluctuation is so high that if you bought bitcoin worth 1 lac today, it can be of 2 lacs tomorrow or can be even worth just 50,000. You can look at this chart to see how bitcoin has been fluctuating over time.
In December bitcoin reached its peak and then the value has decreased substantially.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 are still high and payment is also not very easy. But these things are slowly getting better, the transaction time is improving as and when there's an update in Bitcoin.
Arguing that Bitcoin is Giving way to Illegal
Few people are arguing that Bitcoin is giving way to illegal activities and criminals are using bitcoins for their transactions so that their identity is hidden. But I don't agree with this as all the transactions of bitcoin are recorded on the blockchain however it is anonymously recorded.which is not possible with the other currencies like rupees, dollars, gold's transactions.
Earlier corrupted people used to transact using rupees and dollars and now using Bitcoins, so there isn't any significant effect.so as argued by many in India that this has increased the criminal activities is not true otherwise other developed countries of the world would have not made it legal.
Should We Invest Bitcoin Or Not
Now you will ask me, should we invest in bitcoin or not and how much?
There should be a belief to invest in bitcoin that it can make an alternative financial system and an alternative worldwide currency So we are encouraging a system alongside rupees, dollars and other such currencies which can help us to transact worldwide without any middleman. This should be the most important reason to invest in Bitcoin.
Some people also invest here as in the other assets like gold and properties hoping to get their money doubled however there's no guarantee for the same. So don't believe in this reason much.
Bitcoin: Future Cryptocurrency of India
Bitcoin Will Be the Future of the Currency of India. Some people also think that Bitcoin will be the future of the currencies and it can either replace the existing currency or exist alongside them.My belief is that whether Bitcoin stays or not in the future but out of these one cryptocurrency will definitely be there, Blockchain is going to stay.and rest other currencies, government, banks have started using Blockchain and since the face of blockchain is Bitcoin hence it's predicted that it's going to be very successful in future.
If You Are Not Interesting to Invest In Bitcoin
I would suggest that if you're not investing then you can at least research about Bitcoin and blockchain. There are many materials available about it on the internet. Read and understand about the subject and have a deeper understanding. because it's going to be very important in the coming future. The need for research is also there as it's a new technology and there are a lot of scams related to it. But if you are going to do as I suggested through Zebpay and Coinbase then there is less chance of any scam happening with you.
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