Bitcoin has become one of the buzzwords in the market that has gained traction ever since this virtual currency touched an all-time high in April this year. This biggest virtual currency hogged the space after Tesla’s CEO Elon Musk made a statement, “That he himself owns cryptocurrency ranging from Bitcoin, Ethereum, Dagecoin.” This statement led to a sharp rally in cryptocurrencies, so much so, that Bitcoin touched an all-time high at $65,000 mark. This investment avenue is being discussed across the world, but the more it rally’s the more it leaves keen investors in lurch, who are struggling to understand the intricacies of the cryptocurrencies like How can we buy it? Is it a safe avenue for investment?
How Does it work?
As we said, it is an online cash, and changes hands over the internet. This means transfer bitcoins from their wallet to another person’s wallet who is a party to that transaction. All transactions are recorded in a public list called as blockchain. One point that needs to be noted here is that every transfer of bitcoin is recorded but not with names of buyer and seller but just with their wallet IDs.
The block chain is made of data units called blocks that holds all information about the transaction. All information is arranged in chronological order making a chain called block chain.
Is it legal in India?
The Supreme Court of India came out with the judgement overturning the ban imposed by the Reserve Bank of India in 2017. The Reserve Bank of India barred entities from dealing with Bitcoin. The decision made by the apex court brought the much required clarity for companies and people that it can buy and sell it easily. But one must note that there are no rules and regulations and guidelines in place for resolving issues pertaining to Bitcoin in India. So risk factor can be a big dampener otherwise its legal to buy and sell Bitcoins in India