Is Bitcoin Mining Legal In India: The next break through after Internet was Bitcoin in 21st century, when Bitcoin was invented in 2008, its value was almost zero and at the other side, nowadays bitcoin’s value is in 6 figures.
The concept of Bitcoin is still mystery and unknown for many of people, some are assuming it as a fake concept, so in this article, we are going to explore all those things.
Bitcoin in Legal In India till the Further Updation!
What is Bitcoin
Bitcoin is a Currency same like every country’s currency, but it is not Physical, it is a Digital Currency and does not exist in the physical format like paper or mettle or coin.
It’s a Global Currency, you might be thinking, what is the Global Currency, let’s understand it by an example.
If we talk about India, India’s currency is INR (Indian Rupees) and we use Rupees only in India, if we go outside of India, we need to convert the rupees in their national currency.
But in Bitcoin’s case, we are not restricted to use in any country, we do not need to convert a Bitcoin in their local or national currency.
The second very nice advantage of Bitcoin is that the Bitcoin is not regulated by any central authority or government and there is not any middle man to perform transactions.
How can we use Bitcoin
First of all we need to understand that Bitcoin is a Crypto Currency which does not exist physically, but it is a computer file which is stored in an E-Wallet or Digital Wallet.
You can have a bitcoin in the exchange of money and the second advantage is that you can use the Bitcoins to sell and purchase the things.
Bitcoins are very high demanded due to its limited supply.
As you know that in a bank transactions, there are the details of both parties – receiver and sender, but in bitcoin, there does not exist this concept.
No one can trace that who is the sender and and who is the receiver in Bitcoin transaction.
Mystery of Bitcoin
Bitcoin was invented in 2008, but it is still mystery that who invented the bitcoin, means no one knows that it was invented by an individual person, or group or any company.
It is presumed that the concept of Bitcoin was founded by a person named Satoshi Nakamoto, but he suddenly disappeared in 2011 and it’s still secret that where is he now and what is he doing nowadays and is he the real founder of bitcoin or not.
As you may have observed that the Value of Bitcoin is increasing exponentially in last some years, what is the reason behind it?
The reason is the Hike of Bitcoin.
For example, the Gold is one of the most valuable asset in the world because it is limited and it’s just circulating between people, but it’s quantity is limited.
Same is here, There are only 18 Million Bitcoins are extracted till now, and according to the current situation and stats maximum 21 Million Bitcoins can be extracted.
So, due to the limited supply of the Bitcoin, it has hike.
As you know as long as the demand of anything increases and supply decreases, the value or price of that thing gets hiked automatically.
The same theory and same concept is applied on bitcoin.
What is Bitcoin Mining
The simple and routine meaning of Mining is to mine the precious Metal from the Land by instrument, same like Bitcoin Mining is a Virtual Process in which the Miners solve the very tough mathematical equation and if it gets solved, then they get bitcoins in the rewards of it and it is the generation of new bitcoins.
Is Bitcoin Mining Legal In India
Yes, Bitcoin and Bitcoin Mining is Legal in India after March 2020.
RBI is in the consultation process with the different ministries in order to establish the such kind of framework which can ban the crypto currency in India.
RBI issued a notice in 2018 to the all Financial segments and institutions to inform to do not use and support the Digital Currency including Bitcoin to avoid the frauds of Crypto currency especially after the demonetization in 2016.
Since that moment, the Crypto Currency Exchanges filed a case to remove this ban, and as a result of this case, Supreme Court removed this ban in March 2020 and all the restriction regarding the Bitcoins have been removed.
So, you can use the bitcoin until and unless the new regulation does not get circulated regarding Bitcoin.