Bitcoin in India
- You must have heard about 'Bitcoin'. You must have heard your friends or your friends of friends making money through Bitcoin. But do you know what exactly is Bitcoin.
- If no, then lets see what Bitcoin actually is. Also lets get to know How Bitcoin in India actually works? or What are its Advantages or Disadvantages?, Is it Legal or not?
- Lets see...
- Bitcoin can be defined as "It is a Digital Asset or a Decentralized Digital Currency". Asset is anything that has a value. Like your house, car or property.
- These assets have a particular value in the market when you sell them. Similarly, Bitcoin has a particular value when you sell them.
- This is a digital asset which is not present in a physical form. It is called currency because it can be used as a payment system to transfer money to any one around the world.
- Decentralized because it does not come under any authority unlike rupees or dollars. Here the people having bitcoins can decide the value of it.
Who invented Bitcoin?
- Bitcoin was made by Satoshi Nakamoto in 2009. But no one knows who this person is or is it even a single person or a group.
Why was Bitcoin made?
- It was supposedly made out of financial crisis of 2008. Due to this financial crisis banks and common people got bankrupt due to losses.
- The makers of Bitcoin said that they probably made this to isolate from Governments and banks to make a decentralized system.
- Such a system where they were not dependent on banks or governments for economic losses. So a single person or a group will not be responsible for losses of everyone associated.
Is Bitcoin Legal in India?
- It was said by one of the ministers of India that Bitcoin will not be a Legal Tender. Means you can't pay for anything using Bitcoins.
- So, Bitcoin Investing and trading is legal in India it's just that it can not be used as a payment system.
How to Buy Bitcoins?
- If you want to purchase or trade in Bitcoin the nit is suggested that you should use "Cryptocurrency Exchange Service".
- It is a system where you can exchange your currency into bitcoins or you can exchange your bitcoins into currency.
- There are two most big and trusted companies for exchange services are - Zebpay and Coinbase. It is recommended that you use company services for exchanging.
What are the taxes on Bitcoin?
- So, if you trade into Bitcoins then there are taxes applicable similar to any other assets taxes.
- Short Term Capital Gains or Long Term Capital Gains these two taxes will be applicable similar to any other taxes on any other assets.
- There are some countries in the world like USA, Germany etc. who have legalized Bitcoins but then there are also some countries like China where Bitcoins are completely banned.
Advantages of Bitcoin
- As it is a decentralized system, there is no middle man in this system. So the transaction fees are minimal.
- No single entity controls value. Like banks or governments.
- It is easier for international pay.
- Blockchain Technology is a financial sheet where Bitcoin transactions are recorded.
Downsides of Bitcoin
- Decentralized system is also a disadvantage because the price keeps fluctuating according to people investing in it.
- Transaction cost and time both are high in today's time.
- It is not easy to use or pay. But with time these downsides will probably start to eradicate.
Should you invest in Bitcoins?
- Our suggestion would be that "invest only what you can afford to lose". As you may gain profits or incur losses. So it's up to you.
- It can be an Alternative Financial System for you but only if you believe in it. It should most probably used for secondary income as it involves risk.
- It is suggested that you study in depth about Bitcoin then and only then, should you invest. Consult experts before investing.
- Learn about Bitcoins before investing as it involves money and risk. So research on it and then only invest.
Bitcoin in India
- In early 2018, the Reserve Bank of India (RBI) announced a ban on the cryptocurrencies, including Bitcoin, but in March 2020 the Supreme Court of India passed the verdict, revoking the ban of cryptocurrencies.
- Bitcoin in India is establishing. It is still new for most of the Indians, even if it has been there for so long.
- To but Bitcoin in India, easiest way is to purchase it on the apps like Zebpay, Unocoin, Coinsecure etc. Choosing the best option from them is a task.
Conclusion on: Bitcoin in India
- As of now (2020) so far it is neither legal nor illegal to purchase or sale bitcoins in India. So, you can go for it.
- Initially invest small amount of money, instead of putting all your money.
- Expert guidance is needed. First learn and then earn. Without proper knowledge, Bitcoin is not to be played with.
- Choose legal/assured way of purchasing or trading in Bitcoin. Don't just make decisions for the sake of making money.
Comment down for any queries and suggestions. Thank you!!
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