Ten Questions Everyone Wants To Know About Bitcoin

Ten Questions Everyone Wants To Know About Bitcoin

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Bitcoin is the most precious currency in the world; today, it is much more precious than gold. The rates have grown exponentially for this cryptocurrency. Many people buy Bitcoin or use it to purchase goods and services as a hedge.

Although few policymakers have officially recognized the trade in Bitcoin and Bitcoin, demand rises. Many questions about Bitcoin and its future are being raised.

Any of these questions are answered by Sandeep Goenka, COO, Zebpay. In late 2012 Zebpay was launched. The firm is India's largest bitcoin exchange and the industry's first to introduce a Bitcoin wallet application that permits mobile-numbered Bitcoin transactions.

Zebpay currently has over 4 lakh (400,000) users using the app to purchase, sell, and spend Bitcoin. New users are introduced per month around 1 lakh (100,000), and by the end of the financial year, the firm aims at achieving Rs 1000 crore turnovers.

1. Why Are Bitcoin's Valuation And Demand Increasing?

The depreciation of currencies, especially the US dollar, and the bleak global economy drive Bitcoin demand. Furthermore, Bitcoin was created to resemble precious metals, and its availability is constrained by nature, with only 21 million bitcoins accessible.

The market for Bitcoin is growing year after year for two reasons: early adopters are playing with and using the currency. In India, for example, freelancers welcome Bitcoin payments. The second explanation is that this currency or technology is 100 times more revolutionary than any previous currency or payment network. Since I hope that more people can use bitcoins in the future, I buy bitcoins and keep them in my portfolio.

This is what influences demand and price.

2. How Much Does One Bitcoin Cost? Is It Possible To Buy A Portion Of A Bitcoin?

As of late March 2017, the purchasing rate for one Bitcoin was around Rs 87,000, and the sale rate was around Rs 85,000. Every second, the price shifts. A fraction of a Bitcoin may be purchased. Bitcoin, for example, can be bought for Rs 100 or Rs 1,000.

3. Is It Possible To Trade Bitcoin On Private Blockchain Networks Like R3?

People recognize that Bitcoin is driven by blockchain and that it is poised to transform the way financial companies operate. We assume the blockchain without a cryptocurrency attached to it – also known as "internal blockchain" or "permission blockchain" – has little future. It doesn't have any of the benefits of the Bitcoin blockchain, which is a public ledger driven by virtual currency. Consider blockchain to be a shared Internet with a large number of participants—the private blockchain functions similarly to a corporate intranet.

However, getting a blockchain without Bitcoin is a misnomer; we assume the two are inextricably linked.

R3 is a proprietary blockchain and a large consortium. Bankers are backing the consortium. They've been referring to it as a "distributed ledger." It's not bitcoin because it has nothing to do with cryptocurrency.

4. What Is The RBI's Opinion On Bitcoin And Blockchain Technology?

The RBI has the advantage that it finds blockchain to be a promising tool. There is a wait-and-see strategy, which involves waiting for proliferation to occur and for technology to mature.

An extensive whitepaper was also published by the RBI's research arm, which listed Bitcoin. Two news releases have since been released. There are ethical and technological threats, according to

The importance of a public token is also undervalued.

There will be many proofs of concept and pilots, but I don't believe there will be widespread adoption in the next few years. The hardware isn't quite there yet.

5. Is Buying And Selling Bitcoin From India Legal?

Buying and selling bitcoins is legal in India. In India, no law makes it illegal.

The RBI is aware of our existence, and we have spoken with them. Every month, we conduct business worth more than Rs 200 heart. We are a listed firm that deals with bank accounts.

6. What Will Indians Buy Right Now With Bitcoin? Is Bitcoin Accepted By Service Providers, Services, And E-Commerce Sites?

In a typical commodity or foreign currency exchange, 98 percent of participants are traders speculating on future value, while the remaining 2% are buyers and sellers of products and services. Commodities and the financial exchange are in the same boat. People buy and sell based on information and assumptions. They make predictions on whether they will make money in the future. This is perfect since it gives the asset liquidity. Similarly, some speculate about Bitcoin's potential worth.

There are only a few merchants in India who welcome Bitcoin. However, major corporations such as Dell, Expedia, WordPress, and others support Bitcoin in Western countries. So you can use bitcoins to purchase a Dell laptop or pay for a hotel or airline reservation. Rakuten, Japan's biggest online retailer, has begun to welcome Bitcoin. The same can be said for South Africa's most prominent e-commerce firm.

Since few Indian customers own bitcoins, it makes little sense for Indian e-commerce firms to begin accepting them. It is yet to hit critical mass.

However, it will be fun to see what happens in 2018 and 2019.

Zebpay sells coupons from various service providers, and if you have bitcoins, you can use them to top up your airtime, for example. We don't pay these companies directly. We accept bitcoins as payment for these vouchers. We sell more than Rs 50 lakh per month, and we do so to help the community expand. Every three to four months, this amount doubles.

7. When do you think Bitcoin will be widely used to the degree that people will use e-wallets?

Bitcoin, we say, has already taken off and is now the most popular asset on the planet. The price is $1,250 today (late March 2017), and the cost was $1,000 for a month. It has reached its pinnacle. Since its inception, it has been the best-performing asset. Bitcoin is worth billions of dollars in China and the United States. We have a monthly turnover of Rs 200 crore in India. Every month, we add 1 lakh, new users. This will expand at an exponential rate, with a tenfold rise per year.

8. How Do Bitcoin Exchanges Account For Taxes And Keep Users From Avoiding Paying Taxes On Their Transactions?

This is due to self-control. We keep track of all transactions on our exchange and ensure that everybody follows tax regulations. We provide that all rupee sums you have in Zebpay are credited to your bank account in the last week of March. This guarantees that you report both benefit and loss on Zebpay for your bitcoin trading. We don't let users buy or sell bitcoins until they've completed their KYC process. The PAN card information of consumers is available to us. Both purchases and sales are made from bank accounts.

9. Will Direct Peer-To-Peer Bitcoin Transfers (I.E., Transactions That Do Not Go Through An Exchange) Be Feasible In The Future?

Bitcoins may now be sent from one person to another. Bitcoins may be used to give money to friends and family (if they are ready to accept it). You will send bitcoin to colleges in the United States to pay for tuition. This can be achieved without a credit card provider, a wallet, or PayPal being involved.

However, since it guarantees security between two parties, an exchange will still be used to buy and sell bitcoins. An electronic escrow account, for example, will technically replace a Zebpay swap. To settle conflicts, however, a responsible third party will still be needed.

10. What Precautions Can Customers Take To Protect Themselves From Bitcoin Scams?

The essential piece of advice is to avoid investing in something you don't understand. Bitcoin mining has spawned a slew of projects and con artists. Users should follow a common rule of thumb: any system that promises anything should be viewed with extreme skepticism.

We claim it's a high-risk technology with promise, but we never make any guarantees.

In the Bitcoin universe, there is no such thing as a guaranteed return.

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