For the past few months, the name bitcoin has been on everyone’s lips. You will be surprised to know that while the year 2020 and 2021 was a year full of mourning and concerns, the another hand, they made their all-time high this year (about Rs 29 lakh).
Today’s article will try to get complete information about this bitcoin. So, first of all, let us understand what this bitcoin is?
What is Bitcoin?
Bitcoin is a form of digital currency used for secure online transactions. It is the first and most famous cryptocurrency. Cryptocurrencies are digital currency that ensures secure online transactions using cryptography. Unlike physical cards such as credit cards or debit cards, bitcoins do not have a physical form. These are mainly series in the form of 0’s and 1’s, which are stored on computers worldwide.
There is controversy and different ideologies among people regarding bitcoin. Despite this, large companies such as Microsoft, Twitter, Starbucks, etc., have accepted bitcoin as a legal transaction currency.
Production of bitcoin
As we have already discussed, it is a digital currency that does not have any physical existence. But this does not mean that its production is easy; it takes a lot of effort and energy to make it.
The coin is brought into existence through mining, and it requires electricity which increases the cost of production. People who do bitcoin mining are known as MINers. The process of mining involves solving complex mathematical and cryptographic problems. Miners are rewarded in the form of a bitcoin block to solve these problems. Since these problems are not easy to solve, this process is complicated.
The mining process takes a lot of time, and only a limited number of bitcoins are made from it. Since their supply is limited, there is an increase in the demand, and hence the market is increasing continuously.
Apart from this, there is a lot of competition in the market for bitcoin, due to which its price has increased. However, now people are also getting attracted to other Cryptocurrencies (like Ethereum, Stellar Ripple, etc.).
Can you buy bitcoin in India?
If this question is going on in your mind, then the answer is that you can buy coins in India, and its process is also straightforward. We can choose from many cryptocurrency platforms like CoinSecure, Zebpay, UnoCoin, etc.
To register on these platforms, we have to submit these documents –
- Aadhar Card
- Pan Card
- bank account
- E-mail address
- phone number
Buying or selling in India is not illegal. Still, any government authority does not regulate coins, but some rules and guidelines are expected to relate to it.
Now the question must be coming into your mind: how many coins can you buy at least?
If we talk about the latest price of bitcoin, then it is around 41 lakh rupees. You will be surprised to know that you can buy a flat in any major metropolis for the cost of one bitcoin.
But this does not mean that you should have a minimum of 41 lakh rupees to invest. You can invest in it even with the help of little money. You can buy even a small part of the coin by investing Rs 500. As we discussed, there is no government authority to regulate bitcoins, so there is no rule regarding the minimum quantity to buy. You can invest in bitcoin as per your wish. But we should keep in mind that 21 million bitcoins can be mined, out of which 18 million have been mined, and only 3 million coins are left, which are yet to be mined.
How to earn from bitcoin?
As we know that the basic mantra of investing is patience. The more patience you have, the more your chances of getting a good reward increase. Those who bought bitcoin a few years ago and are sitting on it have benefited a lot.
If you want to make money in less time than this, you can also trade in it like the stock market. Apart from this, you can also get interested in bitcoin by lending it to other people. If you are an expert in this field, you can also make money by teaching other people about it.
Withdrawing profit from bitcoin
If you are getting a positive return on your purchased bitcoins and want to withdraw them, it is straightforward. You have to go to your nearest crypto exchange, and there, you can get the profit in physical currency.
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Since this entire system is decentralized, the facility of direct transfer of returns or profits to the bank account is not available. Due to decentralization, the process becomes very transparent, and apart from this, till now, there has not been any kind of government statutory law on it.
But that doesn’t mean you can’t sell or use bitcoins. You can sell them on the bitcoin exchange, and with the help of them, you can also shop on many e-commerce platforms.
Risks in bitcoin investing
The most significant risk is that its price fluctuates a lot quickly. Even if any hacking or fraud case comes to the fore related to them, their price may drastically decline. Apart from this, they can also be stolen from your system due to their lack of physical existence. Even when trading, there is a risk of falling into the trap of fake or illegal bitcoin exchanges.
Because of this coins, a different issue has arisen regarding currencies worldwide. Everyone wants to become rich overnight by investing in bitcoin, but we should also be aware of its risk. Fluctuations in their price can cause you huge losses. So you should invest according to your ability.