Debunking Bitcoin and its use against Currency | News In Headlines

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Over the years, trading has seen many faces. When Japan considered Bitcoin as the legal trading method, JOB Morgan Chase CEO James Dimon called it “Fraud”. Furthermore, Shanghai-based BTCChina; Chinese bitcoin Exchange Company announced that it will stop trading crypto-currency from September 30, 2017, due to tight regulations. The Indian government, on the other hand, has disliked the idea of trading through Bitcoin.

Bitcoin

So what exactly is Bitcoin?

Introduced by Satoshi Nakamoto in 2009, Bitcoin is a cryptocurrency or a digital currency, which works on the rules of cryptography for regulation and generation of currency units. In simpler words, it is a type of decentralized digital currency.

How does it work?

Bitcoins are actually virtual currency, which doesn’t require any banks for movement and storing of the money. The owner of the bitcoin can trade and can even buy or sell goods and service. The owner can also hold it until the value increases.

Bitcoin Wallet & Bitcoin Mining:

Similar to a bank account, bitcoin wallet allows you to store them to do a transaction. Bitcoin Mining, on the other hand, holds 2 purposes- adding verified transactions and releasing new Bitcoins. The mining process is generally done to reach the secure transaction.

Why Bitcoin won’t see the ray of light in India?

As Bitcoin has come under heavy regulatory scrutiny, The Reserve Bank of India (RBI) is looking at Fiat Cryptocurrencies, which is an alternative to Indian currency. Moreover, the fiat currency holds legal status, compared to Bitcoin which is still isn’t accepted in many countries. According to RBI, It is a private cryptocurrency which can be risky for the economy. The Fiat can be carried in the cyberspace, instead of carrying physical currency.

With this decision, RBI has also flagged “Black Money” possibility because they are susceptible to misuse by fraudsters.

Despite the ruling out by RBI and JP Morgan CEO calling it “fraud”, Bitcoin is still up at 200 percent for the year.

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