The flight of Bitcoin, the world’s largest cryptocurrency, continues. It has now crossed 56 thousand dollars (about 40.50 lakh rupees) by jumping over 5 thousand dollars in the last 24 hours. Bitcoin has now set a new record, reaching $ 56609. Let me tell you that since the company of Tesla, Elon Musk, has invested in cryptocurrency Bitcoin, its flight has not been named.
Just two days ago, the price of bitcoin was at $ 51737, which is about Rs 38 lakh. Earlier, bitcoin prices hit new record highs on Wednesday. Its price went beyond 52000 dollars. The day before, bitcoin crossed $ 50,000 for the first time. It touched a level of $ 52,577.50 on Wednesday, although it later gained 6.3 percent to close at $ 52233.
How is it bought and sold
You can buy Bitcoin online (peer-to-peer) from a crypto exchange or directly from someone. The second medium is quite risky and can also be used by fraudsters. It is worth noting that its exchanges are also not governed by any kind of regulation but in India they are kept within the purview of civil and criminal laws, such as the Contract Act, 1872 and the Indian Penal Code, 1860. Before investing in them, check where the registered address of the exchange is and whether it is incorporated under Indian law. Some exchanges also follow KYC and anti moneyleading procedures.
Bitcoin’s journey into the world of crypto
Bitcoin has become the world’s largest cryptocurrency with a market capitalization of around $ 350 billion. It was launched in 2009 at a time when there was an economic crisis in the world. On the basis of solving mathematical calculations, computers created units in addition to bitcoin. This calculation gets even more complicated each time the unit is added. The most interesting thing about this virtual currency is that its accounts are kept in thousands of computers simultaneously in a public ledger. This is exactly the opposite of the process in which traditional currencies are accounted for in banks’ servers.
- Digital currency Bitcoin came in 2009. Its price reached one dollar for the first time on February 9, 2011
- On 20 February 2021 at 10 am Indian time, its price reached 56015 dollars.
- On Wednesday, February 17, 2021, it touched a level of $ 52,577.50.
- It peaked at $ 48226 (9 February 2021).
- The price of bitcoin has been 8 times since March last year.
- Its market value has increased by more than $ 700 billion since September 2020. Its rate has risen nearly 200 percent in the last three months.
- In just this year, bitcoin has registered a growth of over 70 per cent.
How to divide profits in bitcoin
Bitcoin was initially used by tech professionals or freelancers in which they were paid small amounts in the early years. By the year 2017, it turned into an investment product when its price increased by 20 times and in December 2017 it achieved 20000 dollars (12.6 million rupees). It fell drastically in 2018 and fell to Rs 2.3 lakh per unit. After the knock of COVID in March 2020, it again caught pace. Now it has reached Rs 13.97 lakh per unit leaving the previous top level behind.
Is cryptocurrency trading legal in India
Investment in cryptocurrency in India is neither completely legal nor is there any restriction on it. In 2018, the Supreme Court rejected the RBI ban. Media reports said that a bill to curb all cryptocurrencies would be brought in Parliament in 2019, but it was never tabled in Parliament. The lawyers said that it would be very difficult to pass this bill.
Modi government preparing to ban all cryptocurrencies including bitcoin, bill to be introduced in budget session
What are the risks associated with it
The price of a share in the stock market is determined by the profit position of that company or the profitability of a bond, but this is not the case in bitcoin. There is no basis for deciding its price. People advocating this claim that in other investment resources like gold, no value is associated with their price. The tremendous fluctuations in bitcoin prices can be quite stressful. In a major development, PayPal Holdings Inc. has allowed its users to keep cryptocurrency in the wallet.