CA Rishabh Surana
OVERVIEW
Bitcoin, the word which almost all of us have heard somewhere but still most of us are not exactly aware about this fancy term, its uses, how to buy it, how it works and its benefits etc. Being a finance professionals specifically and also for other persons it becomes quite imperative and interesting to know everything about this newly used term. Here through this article i am trying to make you aware about the all related aspects of the Bitcoin.
What is Bitcoin?
Bitcoin is a digital currency released by Satoshi Nakamoto which is used to make payments of any value without fees. It runs on the block chain, a decentralized ledger kept running by “miners” whose powerful computers crunch transactions and are rewarded in bitcoins.
Vision of Bitcoins
- Bitcoins are intended to be digital currency.
- Buyers and sellers will use them and eliminate all the middlemen such as credit cards, ATM machines, etc.
- Bitcoins will be safer than carrying a plastic card.
- Bitcoins will be an international currency with no exchange transaction fees.
What is the Value of Bitcoins?
- Bitcoins are like diamonds or gold-no intrinsic value
- Speculators who think Bitcoins will be successful, buy as many as they can and hold them for price appreciation.
Sources of Buying Bitcoins:-
♦ Buying Small Amount of Bitcoin is Popular. How to buy it locally?
> Find a dealer with an acceptable price (price is posted on the internet.)
> Arrange a meeting at a place that is safe.
> Bring cash since he/she doesn’t accept any form of credit.
> You pay him and he initiates a transfer from his account in a Bitcoin Exchange.
> He gives you a secure code which deposits them in your “wallet.”
> The number of Bitcoin dealer is growing.
# Do a goggle search for local bitcoin dealers.
Will Bitcoin Survive?
- JP Morgan Chase filed a patent to address the issues of a crypto- currency like Bitcoin.
- Since most owners are speculators the true price for owning Bitcoin only to use as a currency is unknown.
- Hedge Funds and Banks will likely start trading Bitcoins similar to international currencies and gold.
- Bank of America announced that Bitcoin could be a major means of payment for commerce.
- Digital currency makes a lot of sense.
Conclusion
Since the establishment of Bitcoin 2009, its uses as a crypto- currency have been debated extensively as it has become a highly controversial topic. The debates are stimulated by the fact that some argue it has the potential to disrupt the financial system as we know it. On a positive note, the minimal fees and lack of regulations makes it much easier and cheaper to send money internationally. This ultimately makes capital available in the places that need it the most and were previously unable to gain access to capital flows. This trade-off highlights the importance of cost-benefit analysis when evaluating the issue. Furthermore, it is critical to note that any alterations made to the existing infrastructure could radically change the nature of the currency and eliminate some of the greatest benefits it was designed to retain.
(Author can be reached on 8697894282 or on Email: rsurana1001@gmail.com)
Author Bio
Bitcoin is safe for long term investment, I think this currency is high popular in future.