BITCOIN

By- Balaji Palanichamy

DIGITAL CURRENCY: Its nothing but the currency which is in digital form. VIRTUAL CURRENCY: Has typically referred to online only currencies that do not live outside the Internet and can only be exchanged on the Internet. CRYPTO CURRENCY: Currency that are control by cryptography i.e. creation and transaction. The term Cryptocurrency was introduce by w. Dei at 1998 in his paper called b-money

Bitcoin: Bit coins represents nothing but only in number. Bitcoin is a consensus network that enables a new payment system and a completely digital money.

It is the first decentralized p2p payment network that is powered by its users with no central authority or middlemen like pay pal etc..
Satoshi Nakamoto introduced Bit coin -first crypto currency in 2009 .

WORKING METHODOLOGY

The application (bitcoin wallet) was designed to generate 21 million BTC only (bit coin protocol). Bitcoin is works in peer-to-peer system network i.e. the client also works as server . Cryptographic SHA 256- secured hash algorithm which is designed by U.S. National Security Agency (NSA).

Bitcoin where acquired by three way.

Receive from online by a sender. Exchange with the currency. Bitcoin mining every single purchase transaction is log digitally is called block chain. The people who constantly fixing the block chain are called as miners and this process is called as bitcoin mining.

VALUES AND TRANSACTION

The value of 1 BTC vs. Dollar. Since there is no central authority fix value of a bitcoin. But the users determine its price or value. Lowest denomination of rupees is paisa i.e. 0.01 rupee like wise Bitcoin its 1 satoshi 0.000000001 .

TRANSACTION
Bitcoin transaction had carried out through bitcoin wallet either by computer or smart phone. To receive the bitcoin we have to create new address every time.

ADVANTAGES OF BITCOIN

Payment freedom Very low fees

Fewer risk for merchants

Security and control Transparent and neutral

DISADVANTAGES

Degree of acceptance Volatility

Ongoing development
Anonymity

BITCOIN IN INDIA
Bitcoins alliance India (BAI) examine the legality in India and released a white paper. Its states that bitcoin usage is not illegal when transaction are intra-India. In some situation dealing in bit coin will be illegal when it violates foreign exchange management act (FEMA) It is taxable (service tax) when sold it for in terms of money. Capital gain tax is also applicable (for-ex).

BIBLIOGRAPHY
bitcoin protocol by satoshi Nakamoto 2008 b-money by W.Dei in 1998 Bitcoin Explained in laymans term Raghu Kumar. Bitcoins per se are not illegal in India by Lalatendu Mishra. Bitcoins : missing the real revolution by Vasudevan Mukunth

THANK YOU
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