News By/Courtesy: Priyanka Patnaik | 19 May 2020 9:13am IST

Bitcoins are cryptocurrencies. They are also known as a digital currency that hold some monetary value. According to the market cap of cryptocurrencies, their production will decrease over time and creating a demand-supply, making it more valuable soon. It became popular because there was no interference from the government.
Bitcoin became the first cryptocurrency to be invented in 2009 by a developer named Satoshi Nakamoto. Post Bitcoin, coins are called altcoins and are named as Ethereum, Litecoin, Peercoin, Feathercoin. It can be stored in computer hardware in offline mode, which is also called as hot storage and also stored online, also called hot storage.
Two ways to invest in Bitcoin
  • There are various platforms such as zebpay, uncoin, coinsecure. Where you can buy, hold them till you generate profit and later sell them. You can also invest in cryptocurrencies by using different exchanges and platforms. Some of the trusted platforms in the market such as Poloniex and Coindesk that can help you start investing in the coins. In the Indian market, Unocoin is known for bitcoin investment, but the reviews by other investors aren’t so positive. So the Investors are advised to thoroughly scrutinize every platform before signing up and investing.
  • Mining: It can be done so if there are old computers, which are of no use; they can be converted into mining machines, to earn crypto coins. It also depends on the hardware capacity based on which coins can be collected to make profits. Before all this, you have to have a basic knowledge of computers. There is a need to analyze the capabilities of your hardware and see if there is any profit that can be earned after deducting monthly operating costs and electricity bills.
 For Bitcoins or Litecoins, there is a specific machine that can mine the coins at a much faster speed than an average computer. If we have to mine coins in Ethereum network, a good graphics card in a computer is required. If it is not feasible to set up at home, certain online companies will help in setting up mining systems. In the cloud for which there is a monthly payment depending on the computation power being rented.
The Risk Involved in Bitcoin are:
  • The cryptocurrency market is an unstable market, at one point in time you are rich in a day or you can lose everything you invested in seconds. Example: At the beginning of 2017, Ethereum‘s price was $40, which later increased to approximately $400 and now it’s currently trading at $200 which is about 14,000.
  • Another example of what went wrong in the crypto coin realm is the case where an exchange brought the price down of one ETH to $0.10 and triggered the stop loss set by investors.
  • It’s still in its early stage and yet to be adopted by countries. South Korea and a few other countries are already moving in a direction to legalize bitcoins.
  • Bitcoin is based on risk assessment and time, which helps in keeping your money invested.
 Is Bitcoin Legal in India?
Bitcoins are legal now in India after the SC decides on RBI v Cryptocurrencies. The SC struck down the RBI's circular in April 2018 about banning financial institutions from providing services to crypto businesses. The court held that RBI's circular was unconstitutional.

Section Editor: Pushpit Singh | 19 May 2020 18:04pm IST

Tags : #bitcoinbeinglegal

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