Bitcoin is the most famous cryptocurrency, rising 19-folds in value, it has attracted many retail investors from around the world. However, cryptocurrencies are yet not a legal tender in India and Bitcoin is disapproved as a legal currency.
Finance minister Arun Jaitley highlighted in a statement that cryptocurrencies are not legal tender and have no regulatory permission or protection in the country. However, there was no announcement banning or imposing any curbs on the same.
The government panel is also awaiting a report on tackling cryptocurrencies in India, Jaitley said.
The government has recently cautioned investors to be wary of virtual currencies like bitcoin, saying they are like Ponzi schemes with no legal tender and protection.
No mechanism to prevent misuse
Some basics on Bitcoin
- Bitcoin is the first ever cryptocurrency that existed, it was invented in 2009 by Satoshi Nakamoto.
- Cryptocurrencies are nothing but computer codes that have monetary value. No Government has any control over them.
- Bitcoins ‘self-contain’ their value i.e. there’s no need for any bank to move or store the money.
- Bitcoin currency is completely unregulated and decentralized.
- Bitcoins are mined, and they can be mined by anyone in the general public who has a strong computer. However, only 21 billion of bitcoins in total can be mined. Currently, there are around 11 million in circulation.
- Bitcoin has no underlying physical monetary base to support its value, and it is totally subject to its demand in the market.