Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
According to an article in Business Insider, India is one of the biggest markets for Bitcoin, with over 1.2 million users. However, the Reserve Bank of India (RBI) has not given Bitcoin legal status as of yet.
NOTE: WARNING: Trading, buying, and selling Bitcoin is currently illegal in India. It is also illegal to use Bitcoin as a payment method in India. The Indian government has not provided any regulations regarding the use of cryptocurrencies. As such, it is advised that you proceed with extreme caution if conducting any transactions relating to Bitcoin or other cryptocurrencies in India.
The RBI has cautioned users about the risks associated with Bitcoin, such as volatile prices, potential money laundering, and fraud. However, the RBI has not outright banned Bitcoin.
Some businesses in India are still accepting Bitcoin despite the RBI’s warnings. Zebpay, an Indian Bitcoin exchange, has seen a surge in users and transactions since the demonetization of the Indian rupee in November 2016.
The company has also started educating its users about the risks associated with Bitcoin investing.
The Indian government is currently working on regulations for Bitcoin and other digital currencies. Once these regulations are in place, it is likely that the RBI will give Bitcoin legal status in India.
Until then, Bitcoin remains in a legal gray area in India.
6 Related Question Answers Found
Bitcoin mining is the process of verifying and adding transaction records to the public ledger (known as the blockchain). Bitcoin miners are rewarded with BTC for their work, which helps to ensure that the Bitcoin network remains secure and robust. However, some countries have taken a more cautious approach to Bitcoin mining, with various regulatory bodies issuing warnings or even outright bans on the activity.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
When it comes to Bitcoin, there is a lot of confusion out there. Is it legal? Is it illegal?
Bitcoin mining is the process of verifying and adding transaction records to the public ledger called the blockchain. Bitcoin mining is done by running powerful computers that race against other miners in an attempt to solve a math problem. The first miner to solve the problem gets to add a new block of transaction to the blockchain and receives a reward in the form of newly minted bitcoins.
Since its inception, Bitcoin has been involved in some controversy. Is Bitcoin legal or illegal? That is a tough question to answer as the legal status of Bitcoin is still somewhat nebulous.
The short answer is no, trading bitcoins is not illegal. However, there are some gray areas when it comes to the legality of bitcoin and other cryptocurrency trading. The most important thing to remember is that while bitcoin and other cryptocurrencies are not currently regulated by most governments, that could change in the future.
