Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.
Unlike the rupee, which is issued by the Reserve Bank of India and has its presence in the form of notes and coins, the Bitcoin is a virtual currency that exists only online. It is not issued by any central bank or authorities. Created in 2009 by a mysterious genius who remains elusive, the Bitcoin is a completely digital currency that can be used for making peer-to-peer payments and is controlled only by its users.
A Bitcoin is the base currency of the Bitcoin market.It is like how we reference a Dollar or a Euro, and like the different currencies in the world, the Bitcoin trades at different values based primarily on specuation, supply and demand.
One of the most attractive features of Bitcoins is that they are not controlled by any government. They cannot be artificially inflated or deflated. A monetary authority cannot pump more of them into the market to boost the economy. Basically, there is a set amount going out over time and as time goes on the amount entering the market decreases.
There are two ways to own a Bitcoin. First is 'mining', which means to find new Bitcoins using powerful computers to solve complex mathematical problems. The second way is to buy them from people who already own it or from Bitcoin exchange providers.
The way that they are entered into the market is a process called “Mining”. Basically, computers solve mathematical algorithms to earn the Bitcoins. They are very complex and take a lot of computing power to solve. The more computers trying to solve the equations, the harder the equations become to solve, the less you get for mining.
The price of one Bitcoin is rising exponentially. One Bitcoin is approximately equal to $1,200 which is equal to 63,000 rupees! It has soared more than 60 times since this January. Why? This can be answered using a simple economic theory - when demand is high and supply is low, the prices rise (The number of Bitcoins that will be ever generated is equal to 21 million).
However, there are some pitfalls too. The Bitcoin is highly volatile. Also, governments across the world are worried about the use of Bitcoins for illicit activities by drug dealers since it allows funds to be transferred directly between users anonymously. The RBI, SEBI and Finance Ministry are skeptical about it and have adopted a 'wait-and-watch' stance.
India which has a large techie population could soon be one of the largest Bitcoin-using countries. Recently, Forbes reported that 'India could be the next booming market for Bitcoin'. Also, there is Global Bitcoin Conference in Bangalore this week to promote the Bitcoin.
Unlike the rupee, which is issued by the Reserve Bank of India and has its presence in the form of notes and coins, the Bitcoin is a virtual currency that exists only online. It is not issued by any central bank or authorities. Created in 2009 by a mysterious genius who remains elusive, the Bitcoin is a completely digital currency that can be used for making peer-to-peer payments and is controlled only by its users.
A Bitcoin is the base currency of the Bitcoin market.It is like how we reference a Dollar or a Euro, and like the different currencies in the world, the Bitcoin trades at different values based primarily on specuation, supply and demand.
One of the most attractive features of Bitcoins is that they are not controlled by any government. They cannot be artificially inflated or deflated. A monetary authority cannot pump more of them into the market to boost the economy. Basically, there is a set amount going out over time and as time goes on the amount entering the market decreases.
There are two ways to own a Bitcoin. First is 'mining', which means to find new Bitcoins using powerful computers to solve complex mathematical problems. The second way is to buy them from people who already own it or from Bitcoin exchange providers.
The way that they are entered into the market is a process called “Mining”. Basically, computers solve mathematical algorithms to earn the Bitcoins. They are very complex and take a lot of computing power to solve. The more computers trying to solve the equations, the harder the equations become to solve, the less you get for mining.
The price of one Bitcoin is rising exponentially. One Bitcoin is approximately equal to $1,200 which is equal to 63,000 rupees! It has soared more than 60 times since this January. Why? This can be answered using a simple economic theory - when demand is high and supply is low, the prices rise (The number of Bitcoins that will be ever generated is equal to 21 million).
However, there are some pitfalls too. The Bitcoin is highly volatile. Also, governments across the world are worried about the use of Bitcoins for illicit activities by drug dealers since it allows funds to be transferred directly between users anonymously. The RBI, SEBI and Finance Ministry are skeptical about it and have adopted a 'wait-and-watch' stance.
India which has a large techie population could soon be one of the largest Bitcoin-using countries. Recently, Forbes reported that 'India could be the next booming market for Bitcoin'. Also, there is Global Bitcoin Conference in Bangalore this week to promote the Bitcoin.