All you need to know about the first cryptocurrency, Bitcoin

New Delhi: Bitcoin, one of the trendiest words in the world of finance which has gained popularity over time. This is the first most popular crypto followed by Ethereum. Bitcoin has evolved as the common word of mouth after Tesla CEO Elon Musk made a statement, “That he himself owns cryptocurrency ranging from Bitcoin, Ethereum, Dogecoin.”

Notably, since then, there has been a sharp spike in cryptocurrencies, so much that Bitcoin even touched the $65,000 mark.

However, there has been a parallel debate between the bull and bears of Bitcoin. According to the experts, Bitcoin bull predicts that it can become an acceptable asset while bears remind how vulnerable and volatile it has been in the past.

In 2018 and parts of 2019, bitcoin suffered a blow however, it was able to bounce back strongly in 2020. Since mid-March last year, Bitcoin has gained $60,000 in both February and March 2021. According to data revealed by Statista, the main reason behind this is the involvement of Tesla, which announced that $1.5 billion worth of digital coins and the IPO of the US’ biggest crypto exchange were acquired.

There has been much confusion regarding the trading of cryptocurrencies especially Bitcoins. Here is all you need to know:

What is Bitcoin?

Bitcoin is a virtual currency and is online cash that can be transacted over the web. A lot of services have evolved that had made crypto easily available to users. Besides, corporates are strategising payment systems associated with cryptocurrency.

Bitcoin was the first established cryptocurrency that existed since 2009. In 2008, a paper named ‘Bitcoin-A Peer to Peer Electronic Cash System,’ was posted to a mailing list discussion on cryptocurrency by Satoshi Nakamoto. Soon after the price of one bitcoin reached $1000, the value of the coin fell to $12 in the year 2013.

Platform to buy Bitcoins?

People who wish to buy Bitcoins can opt for Bitcoin exchanges. There are platforms named Coinbase and Coindesk where one can easily exchange cryptocurrencies. In India, Bitcoins can be bought from ZebPay. For this, one needs to do a transfer from a bank account to ZebPay. Procedures are simple including a basic KYC for which one needs to submit Aadhaar Card, Pan Card, or any other identification document.

How does it work?

Transfer of Bitcoin happens over the web. It happens from one person’s virtual wallet to another person’s virtual wallet only if that person is a party to that transaction. The exchange of Bitcoin is recorded in a public list called blockchain, however, the names of the people involved in the transaction are not revealed.

Bitcoins In India:

The transaction of Bitcoins is legal in India after the law was passed by the Supreme Court. Initially, a ban was announced upon Bitcoin transactions in India in 2017 by the Reserve Bank of India. However, with the apex court’s decision, people and companies can exchange bitcoins easily and without fear. However, there are no rules and regulations for resolving issues related to Bitcoins. Thus, the transaction is at the risk of individuals and no one can be held for it.