Ever wondered why you and people all over the World love cash? Well it’s easy to carry. How heavy is the rupee note or for that matter the Dollar or the Euro?
Then there is anonymity. Nobody knows who paid cash to whom and how much. You paid cash and bought a bag of apples? Well your rupees or dollars or euros just disappear among billions of notes.
Cash = Convenience. Cash = Anonymity.
No wonder thieves, criminals, money launderers and the corrupt love cash. When you pay in cash it leaves no trail.
Countries the World over are going cashless
Several European countries like France, Sweden and Netherlands are going cashless. Don’t take the meaning of going cashless literally. It simply means all transactions are done through debit cards, credit cards, mobile wallets and other digital modes.
Our country India, is also going cashless. After the demonetization of high value rupee notes, you and other citizens are using debit/credit cards, mobile wallets, UPI and the newly launched BHIM App to make payments.
In all this talk of demonetization and going cashless, let’s talk about a currency called Bitcoin which is very popular in the US, UK, Denmark, Sweden and even South Korea.
So what’s a Bitcoin?
A Bitcoin is a digital currency or a cryptocurrency which can be stored electronically. Nobody really knows who invented the Bitcoin. Its creator is believed to be Satoshi Nakamoto which is probably an alias. It came into existence on January 2009.
What’s special about the Bitcoin is that it’s not controlled or regulated by any country or Government or bank. Bitcoins are not printed like Rupees or Dollars or Euros. A community of people all over the World create bitcoins and you or anyone can join this community. The process of making Bitcoins is called mining. Bitcoins can be mined just by using computing power in a distributed network.
Can any number of bitcoins be made?
Bitcoins run on a technology called block chain technology. This is nothing but a shared public ledger. Every single confirmed transaction anywhere in the World is recorded in the block chain.
According to rules that make Bitcoins work; only 21 Million bitcoins can ever be made. This makes Bitcoins rare and their value increases if there is a huge demand for them.
Why the World is chasing Bitcoins?
You live in an unstable World
Just take a look at some of the recent global events. A new President in the USA who is yet to settle down, all this talk of Brexit (Britain wants to leave the European Union) , the migrant problem in Europe. All this instability is propelling the growth of bitcoins. Bitcoins have become a safe haven (port in a storm), in an unstable World.
You and a number of people are using Bitcoins
The use of Bitcoins is increasing all over the World. As demand for Bitcoins increases so does its value. In October 2016 the value of 1 Bitcoin was around $ 630 to $ 650. Today it’s around $ 1270. In just 6 months the value of a Bitcoin has doubled. Bitcoin has become a great investment. For those in India, 1 Bitcoin is about INR 77,000. Its value changes as demand for it increases.
Bitcoins love cashless economies
A number of European countries are almost cashless. Sweden, Belgium, France, Netherlands and the UK are going cashless. As more and more people all over the Globe adopt digital ways of payment, Bitcoins thrive. Bitcoins love cashless economies.
Why a number of Indians are rushing towards Bitcoins?
The Government of India scrapped 500 and 1000 rupee notes on November 8th 2016, to destroy black money in the economy. You and other citizens of India are now using debit/credit cards, mobile wallets, BHIM App, Aadhaar enabled payments, UPI and other digital modes to make payments. India is fast moving towards becoming a cashless economy.
Bitcoins thrive in cashless economies. All you require is a smart phone or a laptop and you can trade in Bitcoins. Another reason Indians love bitcoins is it’s just like cash. It offers you convenience and anonymity. Well, you and a number of citizens simply buy bitcoins and sell them for a huge profit when their price rises.
RBI is discouraging you and other citizens from using bitcoins. RBI says that if you transact in bitcoins, you are doing so at your own risk. No entity in India has been given permission to trade in Bitcoins.
RBI has to come up with a clear set of rules to regulate the use of bitcoins in India. Otherwise, the trade will merely be pushed underground. Bitcoins will be used for illegal activities like money laundering.
You can love bitcoins or hate them, but you cannot ignore them. Bitcoins are here to stay. Bitcoins could well be the currency of the future. A currency which knows no boundaries and is accepted all over the World.