Bitcoin as a lot of you must have heard is another name for Cryptocurrency. Bitcoin is not a coin, but a code or a virtual token that can be freely transferred from one user to another through a secured network. Bitcoin is the most popular cryptocurrency.
There are about 11 trading platforms in India to buy Bitcoins. Those include Unocoin, Zebpay, Coinsecure, Coinmama, LocalBitcoins, Bitcoin ATMs. However, after the latest reveal by our finance minister which stated that Bitcoin is still not a legal tender in India, what remains to be seen is what the future for bitcoin will be like.
The Finance minister has previously informed the Indian parliament that the Reserve Bank of India (RBI), the country’s central bank, has not issued any licenses to operate with cryptocurrencies in the country. He further informed the parliament that the country does not have any regulations governing virtual currencies.
Back in April, the Indian government moved closer to developing cryptocurrency regulations, setting up an interdisciplinary committee including the Reserve Bank, the Ministry of Revenue, the Department of Financial Services, and others.
However, just last month, the Indian Supreme Court pushed the government to respond to calls to regulate bitcoin. Concerned over bitcoin’s anonymity and its potential illicit uses, justices issued a notice to the central bank and other agencies asking them to answer a petition on the matter, reports indicated.
Global financial leaders such as JPMorgan boss Jamie Dimon and Goldman Sachs’s Lloyd Blankfein have warned that the currency is ripe for use by fraudsters. Ajit Tripathi of accountancy firm PwC says bitcoin’s meteoric rise and its creation myth have attracted more buyers. The currency is said to have been created by a mysterious figure called Satoshi Nakamoto, although there is no proof this is actually a real person. The absence of any government or bank standing behind the currency also fuels its appeal to those unhappy with the financial system after the credit crunch.
But as bitcoin hits the stratosphere, there are fears an economic bubble is forming as it becomes treated less like a currency and more like a store of value, open for speculators making ever increasing bets on how far it can rise. Central bankers, who had to step in when the subprime mortgage bubble burst, have also warned of its dangers.