Dhirendra Kumar, CEO, Value Search told NDTV that Bitcoin is a bubble. It is unregulated and has no intrinsic value and is just a large electronic ledger, he said. "Bitcoin is a speedy money order, nothing else. Don't fall for it," Mr Kumar advised.
All your FAQs about the largest cryptocurrency, Bitcoin, are answered here:
What is Bitcoin?
Bitcoin is the first decentralized digital or virtual currency that largely exists online. No government or traditional banks print it and it has no physical appearance anywhere in the world.
The system of Bitcoin works without a central bank or single administrator. It is a cryptocurrency and the transactions take place between users directly through the use of cryptography, without an intermediary.
Who invented Bitcoin?
Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and was released as open-source software in 2009.
Despite many attempts to find the creator of bitcoin, and a number of claims, it's still not known who Satoshi Nakamoto is, or was. It is not clear whether Satoshi Nakamoto, assumed to be a pseudonym, was a name used by a group of developers or by one individual.
Can I buy bitcoin?
If you want to buy bitcoin, you can buy it online but you do not need to buy a whole one. Bitcoin's smallest unit is a Satoshi, named after the elusive creator of the cryptocurrency, Satoshi Nakamoto. One Satoshi is one hundred-millionth of a bitcoin, making it worth around $0.0002 at current exchange rates.
Are Bitcoins legal in India?
The Indian government has made it clear that while it doesn't recognise Bitcoin as "legal tender" like paper money, there are no guidelines on Bitcoin trading.
The Reserve Bank of India advises that it has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor or trader dealing with virtual currencies will be doing so at their own risk.
What is the price of Bitcoin?
At the beginning of the year, the price of a Bitcoin was below $1,000. It hit $5,000 in October, then doubled by late November. As of December 7, the price of a single Bitcoin rose above $20,000 on some exchanges, according to Coinmarketcap. The average price of one Bitcoin is about $15,375, according to Blockchain.info, a news and data site.
Why has Bitcoin's price gone up so fast?
A limited supply and unlimited demand is one of the reasons. It is believed that most people are buying Bitcoin in the belief that others will want it even more in the future. It is being looked at as a financial investment.
How many bitcoins are there?
Bitcoin's supply is limited to 21 million - a number that is expected to be reached around the year 2140. So far, around 16.7 million bitcoins have been released into the system, with 12.5 new ones released roughly every 10 minutes via a process called "mining", in which a global network of computers competes to solve complex algorithms in reward for the new bitcoins.
Where can I buy bitcoin?
The easiest way to get bitcoin is by using an online exchange and buying just like one would at an e-commerce site. Some of the Indian exchanges from where you can buy the bitcoin are Unocoin, BuyUCoin, Zebpay, Coinsecure, LocalBitcoins.
Read full details here.
What should I do after I get Bitcoin?
After you get your bitcoin, transfer them to an offline wallet right. A desktop-based wallet is the best option, though you can also store them using a mobile application. The most popular desktop application is Electrum, and for Android users, Mycelium seems to be the most recommended app.
How can I store Bitcoin offline?
The most convenient way to store Bitcoins is by using an online wallet, which allows you to quickly transfer money in and out of the wallet, or turn Bitcoins into alternative cryptocurrencies such as Ethereum, Monero, Litecoin, and others. But the safest option is known as 'cold storage', which stores your Bitcoins offline away from any Internet access. Here's how you can store bitcoin in cold storage: Read here.
