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In this blog we will talk about how Bitcoin is useful, its trends, bitcoin price live and the reason behind growth of bitcoin prices in India as well as around the globe. Have you ever wondered that there could be a medium of exchange that is not a currency?
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But firstly you’ll need to know what is a bitcoin and it’s different terms and importance in this world.
What is Bitcoin? Is Bitcoin a Currency, Money, Digital Gold?
Tracing its birth from 2009 Bitcoin is often known as cryptocurrency, a virtual or a digital currency. It is a new currency type which was the invention of an unknown person using the alias Satoshi Nakamoto. You need no middlemen for the transaction to happen that means no bank.
You can trade the bitcoin and get rich. However this kind of gambling can make you lose all you invested. Go ahead only if you have some extra pound. It is a relatively new technique in markets worldwide.
Bitcoin was came into existence as a bypass to the banks and government. Which means the government support is not available because no direct or indirect tax is going to the government’s fund.
Marketplaces where people can buy or sell bitcoins are known as “bitcoin exchanges” using different currencies.
How is Bitcoin useful?
- can be used to buy commodities anonymously
- bitcoins are not tied to any place or country
- international payments are easy and cheap because of it
- there are no credit card fees
- can be bought as investments
- Check out Henry Harvin’s Bitcoin Course
What is Bitcoin Mining?
Bitcoin mining helps in earning bitcoins. It is a process of adding transaction records to the Blockchain. You can do Bitcoin mining in two ways: either you can use your own computer to do the mining or you can hire the hardware from someone.
The mining exists to confirm every transaction, and every single user of the network is able to access this ledger.
Bitcoin Wallet
Digital wallet or Bitcoin wallet is where you can store bitcoins, it exists on user’s computer or in the cloud. They insure users to pay for goods, it’s kind of virtual bank account.
Names of buyers and sellers are not revealed even though each transaction is recorded in public log. It also helps the users to buy or sell things without easily tracing it back to them.
Problems and Limitations of Bitcoin
- not a generally accepted payment method
- only accepted by a minority of wholesalers or traders
- could be uncomfortable or complex to use
- it is a niche product, it can sometimes become expensive to use, that is, if used for small transfers and payments
Is Bitcoin Legal?
Talking about legality of bitcoin is a controversial topic. Countries like Japan have passed a bill where they have given legal recognition to Bitcoin, whereas in China, the government have imposed regulatory restriction towards use of Bitcoin.
In India it is upon the government to decide if we can treat bitcoins as a currency. But the government only has power to issue currency. The real power rests in the hand of Reserve Bank of India to decide whether to treat Bitcoin as a currency or not.
After demonetization in the country, the demand for bitcoin has increased. Even with the increasing demand, the trade has a lot of high risk, thus it is quite difficult to state whether Bitcoin is legal or not.
Interesting Facts about Bitcoin
After the invention of internet Bitcoin has been the most revolutionary breakthrough of the 21st century.
As amazing as the bitcoin is, it has many fun facts, mystery, and conspiracy theories that are yet to come out. Let’s look at some of the most surprising facts about cryptocurrency queen, Bitcoin.
- Did you know? The first Bitcoin purchase was for pizza. The first ever transaction of Bitcoin was the purchase of 2 pizzas by Hanyecz. Today, this transaction is seen as the most expensive food order in history.
- May 22nd is the date Hanyecz made his pizza purchase, which now many cryptocurrency enthusiasts worldwide remember as “Bitcoin Pizza Day” .
- Some strange things like a goat, pocket cannon, a webcam show and even a trip to outer space can be purchased with bitcoin.
- A satoshi is the smallest unit of bitcoin through which transactions can be done. The term satoshi comes from Satoshi Nakamoto, the originator(s) of Bitcoin.
- Bitcoin ATMs are now available worldwide, with the United States having more ATMs than all countries in the world combined.
- The year estimated for mining of the last bitcoin is 2140, based on the Bitcoin block having a dividing frequency of four years.
After knowing what bitcoin is let’s jump to the main topic here, which is, what are the reasons behind the growth of bitcoin prices.
There are various factors determining the Bitcoin prices, such as, the mining process, the international prices, the number of competing cryptocurrencies, regulations governing its sale and overall demand and supply of bitcoin in various countries.
The incredible reminiscent demand will drive the success of advanced money development in India. Exchanging volumes on shared crypto stages Localbitcoins and Paxful have been developing consistently in India. Indians convert their INR to bitcoin and afterward to U.S. dollars utilizing these two stages.
The Causes of Bitcoin’s Price to Rise
Holding
Most bitcoin investors hold or channel a huge part of their bitcoin to private speculation reserves or investment funds. This adds to the apparent shortage of bitcoin, adequately keeps bitcoins unavailable for general use, and prompts cost gratefulness as expanding interest for a constrained flexibly of bitcoin raises costs per unit.
Investors may accumulate bitcoins before its price rises. Investors withdraw coins from the exchanges and hold them when they expect the price to rise.
Increasing Liquidity
Unlike years before when 50% of price fluctuation happened due to low liquidity rate, there are many players involved nowadays. The approval of complex trading instruments deepens liquidity and attracts investors who previously were discouraged by bitcoin’s price fluctuations.
Media Hype
Media hype can generate increased purchasing pressure and increase bitcoin price. While media coverage tends to push up the price, if the rise too fast, it causes a bubble which eventually bursts and crashes the market.
Adoption
Bitcoin whenever adopted by major retailers and investors can cause in driving the price upwards. Another major price booster comes from major financial instruments these allow big institutions such as banks to invest in Bitcoin without actually buying currency.
Growing Distrust in Currencies
If people lose their trust in currency or banking system, they go for an alternative. This is where Bitcoin is a popular solution, which is similar to other assets such as gold.
Also the bitcoin prices in India concerns the instability of the Indian currency. Since Indian rupee is not stable, the exchange rate of Indian rupee and USD tend to rise. After demonetization people are bending more towards the virtual/digital form of money.
Shortage of Supply
Another booster behind bitcoin’s price increase comes from its scarcity. To date, about 85 percent of the total amount has already been mined.
Today, for every 10 minutes, another 12.5 bitcoins come into existence, but this amount of bitcoin gets halve every 4 years or so.
Rate of Growth of Cryptocurrencies
Cryptocurrency is growing faster than the internet, since people believe cryptocurrency is money and everything else is credit, thus bitcoin has a huge store of value.
The invention and expansion of internet brought people together, now they can be connect to each other. With the use of internet it is easy to spread the ideas worldwide. Digitalization has helped in the growth of cryptocurrencies.
The Reasons For Rise In Bitcoin Price In India
The question asked by many bitcoin enthusiasts is – What are the reasons for Indian Bitcoin prices to be higher than international prices?
The rise and fall of bitcoin price is dependent on a lot of factors. Bitcoins have given a boost to our economy. There are many factors determining the bitcoin price such as overall demand and supply in India, international price etc. In this section of the blog you will get to know about the reasons which are responsible for the rise of bitcoin price in India.
- There are hardly any sellers of Bitcoin in India, so due to this reason the Bitcoin prices in India is increasing on a daily basis until there is an appropriate seller for it.
- In such a case the purchasing price is kept very high in order to discourage the buyers from the task to buy bitcoins. This is done to make sure that they have enough coins to sell in the market.
- The future of Bitcoin still seems bright because it is a reliable store of value whose scarcity and high stock-to-flow ratio make it a very attractive investment and a great hedge against current political and economic instability.
- The demand for gold has historically been increasing due to high inflation rates and aggressive monetary policies, and the same can be said for Bitcoin price rise, which continues to prove itself resistant to government intervention.
- Since Indian prices are mostly both buy and sell prices, thus they tend to be higher than the international prices in the market.
- After demonetization the demand for Bitcoins has gradually increased in India. Thus saying that it is not at all illegal to buy, sell or trade Bitcoin in India.
- Thus in the time period of demonetization, there has been a phenomenal growth in the use of bitcoin.
- There is an increase in the rise of bitcoin price in India because anyone can buy bitcoins anonymously.
- Bitcoin price in India is increasing because the bitcoins can be used to buy many commodities anonymously, that is, without tracing the transaction back to the buyer.
- There is a rise in bitcoin price in India because bitcoins are not tied to any place or country, thus are hard to trace. Bitcoin price in India have no boundaries and are decentralized, which means, a person in India can trade Bitcoin with someone sitting anywhere in the world.
- Bitcoins are making international payments easier and cheaper.
- For any transaction to happen there are no credit card fees.
- People can trade bitcoins at a very less transaction cost, and hence, this is a reason for the uprising in Indian markets.
- Bitcoin price in India is rising because you can buy it as an investment.
- Since, people believe cryptocurrency is money and everything else is credit, thus bitcoin has a huge store of value and hence there is a rise in bitcoin price in India.
- Digitalization is yet another significant factor for the bitcoin prices in India to be higher.
- Since people are taking keen interest in the working of bitcoins and are trading with it. That makes the bitcoin price in India rise.
- The Supreme Court has also given acknowledgement to the fact that Bitcoins are not a legal tender, but they are also not prohibited by law.
- America’s trade war with China and disputes with other countries have attracted investors to buy bitcoins.
- A small number of early investors or wealthy bitcoin holders keep a big chunk of bitcoin and they will never let bitcoin price drop.
- The regulatory environment and the instability of Indian rupee are key drivers here. They will send the Indian crypto industry rising high in the market.
- The Indian cryptocurrency market development have three significant driving force, namely immigrants, finance, and government policies.
- One of the key factors behind rapid growth of Indian crypto sector is cross-border remittances. The amount of payments done or traded by Indian immigrants has been the highest in the world over the years.
- Another factor regarding bitcoin prices in India concerns the instability of the Indian rupee. Since Indian rupee is not stable, the exchange rate of Indian rupee and USD tend to rise.
- The ability to freely trade bitcoins or digital currencies in India has brought enormous potential to the trading ecosystem. And the country itself with the many of survey respondents believing heavily in the benefits of cryptocurrencies.
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FAQ’S
Q-1. Is Bitcoin real?
Bitcoin is a virtual currency where no middlemen is required for the transaction to happen i.e. no bank is required. Bitcoin trading offers great security to the transactions. It is a digital/virtual form of money which can be traded online.
Some people even call it magic internet money. It is a scarce digital commodities.
Q-2. What can be the possible reasons for Bitcoin prices in India to be higher than international bitcoin prices?
Since Indian prices are mostly both buy and sell prices, thus they tend to be higher than the international prices in the market. Also there are hardly any sellers of Bitcoin so due to this reason the bitcoin price in India is increasing on a daily basis, until there is an appropriate seller for it.
Further adding There is a rise in bitcoin price in India because bitcoins are not tied to any place or country, thus are hard to trace. They have no boundaries and are decentralized, which means, a person in India can trade Bitcoin with someone sitting in the United States.
Q-3. What are the factors driving bitcoin prices in India?
Various factors determine the Bitcoin price in India like the cost of producing a bitcoin, the international prices, regulations governing its sale, overall demand and supply in India.
One of the key factors behind rapid growth of Indian crypto sector is cross-border remittances another factor is instability of the Indian rupee.
Also bitcoins can be used to buy many commodities anonymously, that is, without tracing the transaction back to the buyer, thus people are attracted for these kind of trading.
Q-4. What are the ways to earn bitcoin?
Bitcoins can be earned through affiliated programs, satoshiDICE is a game that you can opt for gambling and earn the price. You can purchase Bitcoins in cash locally then use the prepaid credit card from the supermarket, you can also purchase bitcoin from nearest ATM.
Q-5. Do People Want to Invest in Bitcoin?
Yes, people nowadays are finding alternatives for currency. With the digital age and invention of internet new technologies are coming up.
There are a lot useful things that people find attracted to while learning about bitcoin. Things such as, bitcoins can be used to buy commodities anonymously as they are not tied to any place or country and are not traceable.
Using the bitcoins make international payments are easy and cheap. Also they can be bought as investments.
Q-6. How do bitcoins work?
Each Bitcoin is stored in a ‘digital wallet’ app and is a computer file. Anyone can send Bitcoins to your digital wallet, and even you can do the same. Every single transaction of your purchase or trading is recorded in a public list known as block-chain.
Q-7. What harm can bitcoin trading lead to?
Bitcoin trading is risky, it can lead you to more harm than do any good. You can loose all your money gambling here. Since it is volatile and fluctuating market the risks are very high.
There is always possibility for cyber theft and fraud. The bitcoin market has no regulations which makes it more vulnerable. This trading can make you financially unstable and leave you with nothing.
Q-8. Similar blog articles
https://www.henryharvin.com/blog/category/bitcoin/
https://www.henryharvin.com/blog/top-3-ways-to-earn-bitcoin/
https://en.wikipedia.org/wiki/Bitcoin
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