Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Bitcoin: The new player in town

Author: Team Finapolis/Sunday, March 25, 2018/Categories: Currency

Bitcoin: The new player in town

Bitcoin, a crypto-currency, became the cynosure of attention and gained importance rapidly in the recent past. The world has conflicting views on Bitcoin, with Japan considering it legal tender and JP Morgan Chase CEO calling it a little more than ‘fraud’.

What is bitcoin?

Invented by an unknown person called Satoshi Nakomoto, Bitcoin is the world’s first decentralised digital currency that works without a bank or an administrator. Bitcoin transactions are verified through a cryptograph and recorded in a public ledger called blockchain. It was released as open-source software in 2009. It falls under the scope of crypto currency and is the first and considered most valuable among the others.

How does Bitcoin work?

Bitcoin is a virtual currency, designed to be self-contained. It doesn’t need an intermediary to move and store the money. It is obtained by the process of mining. Bitcoins are presented as rewards for mining. They are obtained by solving complex math puzzles. They can be exchanged for services online or purchasing of goods. One can even keep them as an investment and wait for their value to increase over the years. Currently, a winner is rewarded with 12.5 bitcoins every 10 minutes.

Bitcoin can also be purchased and sold on bitcoin exchanges, using different currencies. Bitstamp, Coinbase, Bitfinex are some examples of exchanges. They can also be digitally transferred through mobile phone or computers, in a manner similar to sending money digitally.

Bitcoins are generally stored in ‘wallets’. It is essentially a personal database that can be stored on your computer smartphone, or even somewhere on the cloud.


Every bitcoin transaction is carried out anonymously. They are recorded in a public log, but the names of the buyers and sellers are not revealed, only their wallet IDs. This also doesn’t allow the buyers and sellers to be tracked. Due to this, this mode of payment has gained popularity with those indulging in illicit activities such as drug trade. 

Future of Bitcoin

Bitcoin, having just gained popularity, also has an unpredictable future. Bitcoin remains unregulated in most countries, although countries like Japan, China and Australia have begun weighing the possibility of imposing regulations. It has also been a cause for most governments as they have very little control over the currency, which also poses a problem in taxation.

Many consider bitcoin the future and have classified it as a 21st century version of gold while many others are apprehensive about its credibility. Its prices are expected to remain volatile in the coming years. But whether it is here to stay or just a passing fad, only time will tell.

Print Rate this article:

Number of views (217)/Comments (0)

rajyashree guha

Team Finapolis

Other posts by Team Finapolis
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free