Should You Buy Bitcoins In 2017?
The Prime Minister Narendra Modi, scrapped 500 and 1000 rupee notes on November 8th 2016. The 500 and 1000 rupee notes made up 86% of currency by value in India. These old notes were replaced by new 500 and 2000 rupee notes. For demonetization to succeed, it was very necessary that secrecy had to be maintained. It was not possible to print the new 500 and 2000 rupee notes in sufficient quantity, to replace the old notes. In the early days after demonetization, shortage of these new rupee notes, led to a cash crunch. There were long queues in front of banks and ATM’s, as you and other citizens struggled to get cash.
Today, there are sufficient new 500 and 2000 rupee notes at banks and ATM’s. Banks have still imposed, cash withdrawal limits of INR 24,000 a week. In the midst of all this, you and other citizens have shown interest in a new currency. It’s a cryptocurrency (virtual currency) called Bitcoin. Want to learn more about Bitcoins? Just read on.
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What is a Bitcoin?
The Bitcoin network came into existence on January 2009. Its creator is Satoshi Nakamoto, believed to be an alias. Bitcoin is a virtual currency or a cryptocurrency. This is a currency which is not controlled by any Government in the World. It is not managed by any Bank or Organization. This currency works on digital platforms. Bitcoins are generated through a computer program and can be converted to cash, after being deposited in a virtual wallet.
You can use Bitcoins to pay for an electronic purchase or even transfer it to friends. Indian online retailers do not accept Bitcoins. Foreign retailers accept Bitcoins and could even give you a discount.
Reserve Bank of India (RBI), has issued a warning against the use of Bitcoins calling them unsafe and says they promote money laundering.
How does Bitcoin Work?
Bitcoin is an open-source software program whose supply is controlled by a computer algorithm. A network of users called “peers” decide to buy and sell goods or services using Bitcoins. The supply of Bitcoins is restricted, which helps increase its value. The value of a Bitcoin depends on the trust, placed in it by the Bitcoin community.
Bitcoin runs on block chain technology, which is nothing but a shared public ledger. Every confirmed transaction is included in the block chain.
After demonetization the demand for Bitcoins has increased in India. The value of the Bitcoin surged from $757 a few days after demonetization, to over $1000 today.
Today 1 Bitcoin = INR 71,680.
How To Trade Bitcoins?
You can buy or sell Bitcoins over Indian Bitcoin Exchanges. If a merchant accepts Bitcoins, you can pay him from your bitcoin mobile wallet, stored on your smart phone or laptop. You simply enter the beneficiary’s address and then the amount you pay and make the transfer.
Should You Buy Bitcoins In 2017?
The Global economy is not steady
There has been unstability in the Global economy in the recent past. Brexit (The citizens of Britain voted to leave the European Union)…A new President in USA, Donald Trump yet to settle down….This could be a great time for Bitcoins, as uncertainty increases their value.
Use of Bitcoins is increasing all over the World
The use of Bitcoins is increasing in Finland, Latin America, China and South Africa. You and other Indian citizens have also shown a lot of interest in Bitcoins. The use of Bitcoins is rapidly increasing in India. This increases the value of Bitcoins, as they are widely transacted.
Bitcoins thrive in Cashless Economies
Many European countries like Swedan, Netherlands, Belgium, England and France are going cashless. Cashless means citizens use digital methods like debit/credit cards, mobile wallets and so on, to transact instead of cash. Bitcoins thrive in a cashless economy. After demonetization in India, chances are Bitcoins could really take off, as you and other citizens adopt digital modes of payment.
India is fast becoming a cashless economy, thank to demonetization. Bitcoins thrive and grow in a cashless economy. This is good news for Indian Bitcoin Exchanges. Be Wise, Get Rich.