Bitcoin is the world’s largest and most popular cryptocurrency. It was created by Satoshi Nakamoto in 2009 – although the real identity of the creator remains a mystery. So what is Bitcoin exactly? It is a digital currency that does not have a physical form. It is not endorsed or issued by any government or bank and exists in a digital ledger that records all transactions made with Bitcoin. The digital ledger is transparent and people from all over the world can access the information stored. Although Bitcoin is not “legal” tender, it is gradually starting to establish itself as a currency in many countries around the world. Many large companies are starting to accept cryptocurrency as a means of payment for their products, including in India.
Bitcoin as a currency
The American sandwich chain Quiznos accepts Bitcoin as a means of payment in its restaurants. Quiznos is one of the largest restaurant companies in the US and has partnered with digital asset company Bakkt to enable payments via cryptocurrency. Another US company, AMC Entertainment, which owns Odeon Cinema, has decided to give Bitcoin payments a try. The cinema chain with cinemas in the US and Europe recently announced that it would let moviegoers pay for tickets and concessions with Bitcoin until the end of the year. Bitcoin price in India was Rs. 35.25 lakhs as of 4pm IST on August 18th.
Bitcoin as a currency in India
In India, cryptocurrency is neither legal nor illegal. Cryptocurrency trading in India has yet to be regulated, but Indian companies are slowly warming to the idea of accepting cryptocurrency as a means of payment. Several Indian companies have started accepting cryptocurrencies like Bitcoin and Ethereum as a means of payment for their products. A Delhi-based home decor company called The Rug Republic, an electronic goods company called Purse, and Suryawanshi restaurants in Bengaluru are some of the Indian companies that welcome cryptocurrency payments. The Ethereum price in India was Rs. 2.37 lakhs as of 3:30 p.m. IST on August 18th.
Bitcoin: The Original Vision
Bitcoin, unlike a government issued currency, promises lower transaction fees than most traditional online payment mechanisms. It is operated by a decentralized authority. Bitcoin was one of the first digital currencies to use peer-to-peer technology to enable instant payments. The individuals and companies participating in the bitcoin network known as bitcoin miners are responsible for processing the transactions on its blockchain network. You will be motivated by rewards such as transaction fees paid in Bitcoin. Bitcoin can easily be accepted as currency by online businesses when they add it to their online payment options.
Value and use of Bitcoin as a currency
Bitcoin is currently being welcomed as a currency, but development is still in its infancy. Therefore, its use is restricted. It can only be considered a valued currency in businesses, restaurants, and stores that accept it as a form of payment. One cannot try to use Bitcoin to buy products from a store that does not use it for their day-to-day transactions. In terms of its commercial use, Bitcoin has yet to grow in value beyond its market value. However, Bitcoin can easily be sold to other cryptocurrency investors and miners, or traded for another virtual currency or even fiat currency – like Indian rupees or US dollars – through a cryptocurrency exchange.
Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.