Wednesday December 11, 2019
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Status of Bitcoin in India

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.

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India has not legitimized bitcoin, hence investment returns are totally based on demand i.e. you get your return only if there is another buyer in the market who is ready to pay you more for it. Currently the high-value of the digital currency owes to its high demand, but once people start selling, there is a possibility that rates will drastically fall. Pixabay
India has not legitimized bitcoin, hence investment returns are totally based on demand i.e. you get your return only if there is another buyer in the market who is ready to pay you more for it. Currently the high-value of the digital currency owes to its high demand, but once people start selling, there is a possibility that rates will drastically fall. Pixabay

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.

Government’s take

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.

There is no bank or government tax agency that can track your money and its movement. Hence, it can become a tool for money laundering. Pixabay
There is no bank or government tax agency that can track your money and its movement. Hence, it can become a tool for money laundering. Pixabay

No mechanism to prevent misuse

There is no mechanism to prevent the misuse of cryptocurrencies such as Bitcoin by terror groups and other anti-national elements.
“One of the features of cryptocurrency is that there is lack of dependence on the state. It functions with a degree of anonymity. It operates within a virtual community which is created and enjoys the trust of that virtual community,” Finance Minister Arun Jaitley told the Rajya Sabha.
“The government is examining the matter. A Committee under the chairmanship of the Economic Affairs Department Secretary is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken… Instead of taking any knee-jerk action, let’s wait for the report of this committee.” Jaitley added
There is no insurance protection of your bitcoin wallet i.e. if you lose your wallet’s hard drive data or even your password, your wallet’s content is gone forever. Pixabay
There is no insurance protection of your bitcoin wallet i.e. if you lose your wallet’s hard drive data or even your password, your wallet’s content is gone forever. Pixabay

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.

Next Story

SpankChain Launches SpankPay so Users can Pay for Porn with Bitcoin

The payment to watch premium porn via SpankPay would charge a 0.5 percent transaction fee, the company said

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facebook, servicefriend, startup, cryptocurrency
We acquire smaller tech companies from time to time. We don't always discuss our plans. Pixabay

 Soon, you will be able to pay Bitcoins to watch porn. Adult content platform SpankChain has launched SpankPay, a cryptocurrency payments platform, which will be integrated to allow for a single payment solution across number of different online adult sites.

The payment to watch premium porn via SpankPay would charge a 0.5 percent transaction fee, the company said in a statement.

SpankChain has launched the service with two integration partners, SkyPrivate and JustFor.Fans, offering a low-cost way for users to consume adult content online.

Users can use different cryptocurrencies — including Bitcoin, Ethereum and privacy-focused coins such as Zcash and Monero — for instant transactions and one-click purchasing.

SpankChain, Porn, Cryptocurrency
Soon, you will be able to pay Bitcoins to watch porn. Pixabay

“With SpankPay, we are bringing immediate value to adult merchants by helping them accept crypto, avoid chargebacks, and reach a global audience. We are proud to launch it with SkyPrivate and JustFor.Fans, which are lead by two of the most forward-thinking business leaders in the adult space,” said Ameen Soleimani, CEO of SpankChain

Dominic Ford, creator of JustFor.Fans, said they excited to offer cryptocurrency payment options to its subscribers.

“Using SpankChain, we don’t have to worry about being shut down due to the fact we are an adult company. We’d much rather support our fellow adult solution providers than use outside solutions that are potentially not adult-friendly,” he said.

Also Read- Reduce Intake of ‘Ugly Cholesterol’ for Stroke Prevention: Researchers

Pornhub last year announced a partnership with anonymous cryptocurrency Verge. (IANS)