UNTOLD STORY OF BITCOIN-A FRAUD, SCAM AND BANNED
Bitcoins one of the form of cryptocurrency created in 2009. A very well balance digital currency which reach like a normal currency work in a decentralized form and with no collateral assets. The future of bitcoins availability in stock market as a derivative will be more interesting to watch. As we know derivative is financial assets which derive its value from underlying assets. So what if Future Currency contract replace by Future Bitcoins Contract or Bitcoins Contract between two or more countries. The reason of raising it louder is because of higher rate of fluctuations in shorter periods. So here is the question; Is the bitcoins is one of the mode of derivative contract in upcoming time?
Tendency of bitcoins behavior in short run and long run is matter of fact to understand more precisely. So question here arises, Is Bitcoins is the future of Indian Financial Market? Is Cryptocurrency movement will match the general tendency of market? Is other country will negotiate in bitcoins? Is autonomous body of a financial market is ready for it?
It follows the concept which is out of white paper by the mysterious Satoshi Nakamoto, whose true existence yet to define. Bitcoin with a unique feature of low transaction fees as compare to traditional mechanism and work in a decentralized environment i.e. without the involvement of govt/regulated body. Today’s market cap for all bitcoin (abbreviated BTC/ XBT) in circulation exceeds $7 billion.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite its not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Bitcoin solves the so called „‟double spending problem‟ present with digital goods. For example, if I have an mp3 file or an ebook on my computer, I can freely copy that file a thousand times and send it to a thousand different people. For a digital currency, the possibility for infinite imitate would mean a quick hyperinflationary death. Bitcoin solves this by maintaining a peer to peer network and recording each transaction in a public ledger called the blockchain. Say I send 1 bitcoin from my bitcoin address to my friend Rajesh. The bitcoin network records that transaction in the blockchain and I no longer have possession of that bitcoin. The coin ‟moved‟ from my bitcoin wallet to Rajesh’s wallet.
Bitcoin has several advantages compared to traditional money transmitting services. We already mentioned two of these above, the elimination of the need for third parties and the bypassing of restrictions.
Another major plus of the new crypto-currency is the very low cost for sending and receiving bitcoins. While it is possible to send transactions completely free of charge, it is recommended to pay the small fee in order to speed up the sending process.
The fee amount depends on the data size of the transaction. A typical transaction is 500 bytes and carries a fee of 0.0001 BTC. At current prices of $250 per bitcoin, this amounts to a charge of 2.50 cents. Because the fee is completely dependent on a transactions data size and not on the number of bitcoins being sent, a $10 transfer will carry the same fee as a $10 Million transfer. The fee will take a 0.25% piece of a $10 transfer but that same fee will only take 0.00000025% of a 10 Million transfer.
Bitcoin offers benefits to merchants as well, as transactions that involve the digital currency are secure and irreversible. Without the risk of fraud or fraudulent charges, merchants can offer their products at a discount thereby generating more sales or pocket the difference themselves. In addition, with card processors out of the picture, merchants can save on the percentage cut taken by Visa / MasterCard.
So the future of bitcoins can be one of most hedgeable securities, if we design an optimal combination of securities bunch.
Is our government is ready to accept it or not? Acceptance make it existence more meaniful.
While studying cryptocurrency the volatility is the issue as well as opportunity for the investor Even after the statement, released on December
RBI said, “Attention of members of public is drawn to the Press Release issued by the Reserve Bank of India (RBI) on December 24, 2018, cautioning users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks, associated in dealing with such VCs.”
Let see what comes next on bitcoin news-Stay Tuned!!