Bitcoin - Meaning, Current Trend, Price, Mining

By : Neha Dhyani

Updated : Mar 29, 2022, 4:37

Cryptocurrencies have come more and more into the limelight with the passage of time and their induction into the mainstream investment channels. Bitcoin, one of the first cryptocurrencies to assume the center stage, this wheel was set rolling.

Bitcoin Demystified

Bitcoin is a decentralised digital currency. By decentralisation, it is meant that the disbursement and valuation of Bitcoin are free from the control of any central bank of any country. Hence, it is free from the power of any country. Its creation occurs through a process called mining. On October 31, 2008, Bitcoin assumed its identity when an unknown individual or group of individuals known as Satoshi Nakamoto released a white paper about Bitcoin titled "Bitcoin: A Peer-to-Peer Electronic Cash System."

Bitcoin was explained as a decentralised digital currency based on an open-source code in the white paper. It was explained to operate on a public distributed ledger system intertwined with blockchain technology.

  • On January 3, 2009, the Bitcoin network emerged as Nakamoto mined the first block of the chain on which Bitcoin is based. This first block is known as the genesis block.
  • The first recipient of a Bitcoin transaction was Hal Finney. Hal Finney was the creator of the first reusable proof-of-work system (RPoW) in 2004.
  • Finney downloaded the Bitcoin code on its publication and received ten Bitcoins from Satoshi Nakamoto on January 12, 2009.
  • In 2010, the first known Bitcoin transaction for a commercial purpose occurred when programmer Laszlo Hanyecz used ₿10,000 to purchase two Papa John's pizzas from Jeremy Sturdivant.
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The Legitimacy of Bitcoin in India

India's stance on the legitimacy of Bitcoin has remained unclear for years. The first signs of Bitcoin gaining any recognition by the Indian Government can be seen in the Indian Budget Speech of 2022. In her Budget speech on February 1, Finance Minister Nirmala Sitharaman has announced that the income made from the transfer of digital assets would be taxed at 30%. This tax will apply to cryptocurrencies and non-fungible tokens as they are included in the "digital assets" definition. Moreover, the Reserve Bank of India will issue a new digital rupee using blockchain and other technologies for 2022-23.

However, the legality of cryptocurrencies is still in question in India. While the stance on whether Bitcoin can be considered a legal tender is still unclear, income from Bitcoin-related transactions will be taxed from the Financial Year 2022-23.

Current Market Trends About Bitcoin

Cryptocurrencies traded in the red early on March 14. The global crypto market cap is $1.70 trillion, a 2.84% decrease over the last day. The total crypto market volume over the previous 24 hours is $62.28 billion, a 16.08% increase. Bitcoin's price is currently Rs 30.30 lakh, with a dominance of 42.47%. This was a 0.04% fall over the day, as per CoinMarketCap data.

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FAQs on Bitcoin

Q.1. Who developed Bitcoin?

In 2008, an anonymous individual named Satoshi Nakamoto brought out a white paper explaining how Bitcoin would work.

Q.2. How does one acquire Bitcoin?

  • As payment for goods or services.
  • Purchase Bitcoins at a Bitcoin exchange.
  • Exchange Bitcoins with someone near you.
  • Earn Bitcoins through competitive mining.

Q.3. What is Bitcoin Mining?

Bitcoin mining is a process where new Bitcoins are created and awarded to miners when these miners solve complex math problems associated with mining a Bitcoin.

Q.4. How does Bitcoin make money?

New Bitcoins are created as part of the Bitcoin mining process, in which they are offered as a lucrative reward to people who operate computer systems that help to validate transactions.