Bangalore: Like normal currency, bitcoin currency can also be used for selling and purchasing. The concept was introduced in 2008 by a pseudonymous developer "Satoshi Nakamoto", who called it a peer-to-peer, electronic cash system. This crypto currency can be transferred through internet without an intermediate financial institution.
The transactions are processed through servers called the Bitcoin miners, these servers communicate over an internet-based network and confirm transactions by adding them to a ledger, which is updated and archived periodically using a peer-to-peer file sharing technology.
In India, this service is slowly resuming its activity after a long gap. This is because the central bank issued a public advice highlighting the risk of digital currency. BuySellBitCo.in that handles 12 million rupees transactions a month stopped its services and also advised others including INRBTC to shut down their services. Action was taken against Bitcoin operators by the tax authorities for halting other operator services. The problem with Bitcoin service is its vulnerability to hacking. As the transactions made on bitcoins are not traceable, it might become easy for illegal online transactions such as buying drugs and money laundering. Thus, the bitcoin operators are asking the government ‘s help in making their service possible in India and accordingly, some operators such as Unocoin have resumed their service with strict buying and selling limits India has about 30,000 Bitcoins accounting to one percent of the world’s 12 million. Currently 1 BTC (bitcoin) is equivalent to Rs 6,491. Unlike physical currency, BTC cannot be easily stolen because it requires an authorized physical device to transfer them and once the transaction is done, the ownership changes immediately. This service is growing rapidly but it’s yet to reach major retailers across the world. Currently, there are no online or physical stores in the country that accept Bitcoins, but this could surely be a major source of transaction in the future.
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