From the date of its invention, bitcoin has always been a controversial issue in India. The advantages of using or owning the bitcoin have not taken light until recently. Not a lot of people were even familiar with the term bitcoin a few years back. There were only a few Internet active people who looked into it before most of us did. So, how did the Bitcoin enter the market? What kind of impacts did it have on the Indian market? Let’s find out.
Bitcoin in India
As said above, Bitcoin wasn’t always popular. There was a time when people were able to mine Bitcoin from the web. August 18, 2008, was the day that Bitcoin.org was officially registered. Some of the software developers, engineers, saw this process and evaluated it to be a waste of time. Some cared to mine bitcoin, and now we’re seeing them as Millionaires.
It wasn’t easy for a Cryptocurrency that too one of the first ones to enter a country like India. The Indian payment system was mostly liquid back then. So, very few people invested their time in mining bitcoin. However, the situation is not the same now. Most of the payments in India are digitalized after the ‘Demonetization.’ With this, the acceptance of the Bitcoin also increased substantially.
A Brief Summary of Bitcoin In India
Using or processing transactions with bitcoin in India is not illegal. You can buy and sell Bitcoin on various platforms in India. However, there is a court case going on in this matter. RBI has spoken out on Bitcoin quite a lot of times. RBI released a statement in 2014 to all the banks to warn its customers about the potential threats and other issues related to digital currencies. Following this statement, in 2013, a lot of Bitcoin transaction services in India were halted either temporarily or indefinitely.
However, this can still be considered as a golden age for Indian Cryptocurrency dealers and investors. The market boomed with the rise of many startup companies, which in turn increased the market demand. The Bitcoin in India soared high during the next three years.
During the demonetization, the country faced a great need of usable money. Since most of the currency in circulation was banned, people needed an alternative to lead their investments.
Thankfully, Bitcoin and the other cryptocurrencies came to help at this critical time. Bitcoin was the best feed for investors during this time. This was just about the time for some drama. When the country thought that Bitcoin might be legalized soon, RBI flipped the coin and changed directions.
Later RBI set up a committee on the issue of Bitcoin and other cryptocurrencies. This Committee’s report was later analyzed, and RBI took a decision in 2018. RBI did not ban Cryptocurrency wholly. Rather they introduced a regulation in the exchange of Bitcoin. RBI decided that no financial institutions under the Reserve Bank of India will participate in the exchange of any kind of Bitcoin or any Cryptocurrency for that matter.
Is Bitcoin Legal in India?
In 2018, RBI decided to put a stop to all the legal transactions on using Bitcoin as an official coin. So, when is say that Bitcoin is legal in India, it might not surprise you much. However, the ban on banking with Bitcoin substantially reduced the mania of Bitcoin in India.
It is no shock that the Indian government decided to do this. In fact, Bitcoin is totally or partially (ban on banking) banned in most of the Asian countries. This might have something to do with the effect of using digital currency on the National coin, but there surely are a lot of people hoping they would legalize the use of Bitcoin someday.
The irony is that ‘How to invest in bitcoin’ is one of the most searched terms in India. This proves that the public wants to use digital currency. The draft is still not clear though. Even after all this time, the government still seems to be working on the perfect solution, but for now, it is legal to use Bitcoin in India.
Bitcoin exchange History in India
As mentioned in the above paragraphs, there was a time when you could’ve gained Bitcoin without investing in anything. Things have come pretty far from then. Bitcoin showed the world a lot of Millionaires in the past few years. Let’s see the exchange rates of Bitcoin in Indian rupees during these times.
Bitcoin started very small. The initial exchange rate was not even equal to 50 rupees. In fact, Bitcoin first reached a level with the United States Dollar was in 2011, which is like a couple of years after the startup.
However, there were no investments opportunities for Indians to invest in rupees back then. Bitcoin sticks opened up for the Great Britain Pound in 2011 too.
Bitcoin was used to buy a lot of silly things way back then. A user actually bought two pizzas with 10,000 Bitcoin, which would be $750 thousand in 2013.
Bitcoin reached the all-time high in 2017. The best year for dreamers. In 17th December 2017, a single Bitcoin which was worth less than a dollar 6 years back was valued at $19783.06 or 1362261.51 rupees in current Dollar-rupee exchange.
Now, will you believe me if I say a guy once auctioned 10,000 Bitcoin for just $50 and no one participated in the auction? Well, lucky for that guy he didn’t know that he’s going to be some millionaire (not if he already was). Bitcoin was literally started at zero value just as a means of fun for Cryptographers and is now changing the course of the world.
Bitcoin has a banking ban in India, but this isn’t stopping the Indian investors from investing in it. There is no certainty on the absolute ban on Bitcoin in India for now. Currently, Bitcoin has an exchange rate of 6,49,793.95 Indian Rupee as per the noon of 27th July. Who could possibly have imagined this? If there’s an option to go back in time, we could literally buy a million Bitcoins.