The term bitcoin is the most hyped topic these days amongst all the financial markets. India is also growing rapidly in investing under cryptocurrency. What are exactly bitcoins? Bitcoin is a new currency that was created in 2009 by an unknown person under a pseudo name Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks. Bitcoin is the most valuable cryptocurrency as of now. So why do people buy bitcoins?
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. As per 2017 stats, 1 bitcoin equals to 1108789.83 in Indian currency. Where you can buy these bitcoins? Many marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies.
Why People afraid to invest in bitcoins in spite of attractive buzz being created about it?
- Cryptocurrency right now is not regulated. Bitcoins and other currencies are not being monitored by the government. So even anonymously you buy or purchase anything there is a supreme risk in the details of a particular person. The RBI has been repeatedly flagging concerns about virtual currencies like Bitcoins, stating that they pose potential financial, legal, customer protection and security-related risks.
- Bitcoin transactions are irreversible. As the stats show how much is the increase is in the price of a single bitcoin. When you create an account with a crypto currency service provider, your money is kept in a digital wallet with one public and one private key. The public key is your mobile number and the private key is your username and password. You should keep both the keys confidential. Your money inside the wallet will be worthless if you don’t remember a password. If in any case, the transaction goes wrong, all the money invested cannot be tracked back.
- On the internet, there are lot of dealers and markets available for bitcoin purchases. There are many fake agents selling cryptocurrencies with the promise of delivering high returns. So, if you want to keep your money safe, it is better to deal with exchanges that are registered on bitcoin.org.
- Due to rare number of purchases in cryptocurrency and no regulation for the transactions going on, there is no rule to differentiate between the fake and real id of a bitcoin holder. Chances are there will be fake id’s created.