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As of March 2021, the cryptocurrency market is worth around US$1.7 trillion, out of which US$1 trillion is Bitcoin alone. Bitcoin is still so dominant that all altcoins’ collective price action continues to depend on Bitcoin largely. Its value has been increasing since its inception; it has made many millionaires and even Billionaires in the past decade. It seems that Bitcoin’s value will keep on increasing in the foreseeable future.
This begs the question – why is Bitcoin’s value on the rise, and how to buy Bitcoins in India?
#1 The tech that Bitcoin delivers
Blockchain was first presented to the world in the 90s, but it didn’t gain much traction at that time. Bitcoin was the first successful implementation of the technology. The idea of a trustless and privacy-centric payment system is quite intriguing.
#2 Deflationary tokenomics
Bitcoin’s value is always on the rise, not just because of its tech; tokenomics is also equally responsible. Tokenomics is a study of understanding the supply and demand model of a cryptocurrency. Bitcoin has a deflationary model of tokenomics; this means it will reduce the supply with time.
After every 210,000 blocks of the Bitcoin blockchain has been mined, Bitcoin reduces its supply by 50%. In the early days of Bitcoin, the mining rewards of one block of Bitcoin was 50 BTC, which was reduced to 25 in 2012 and 12.5 in 2016. After the third Bitcoin halving, in 2020, the mining reward is 6.5 Bitcoin. This mining algorithm will go on until all 21 million Bitcoins have been mined, effectively increasing Bitcoin’s value over time.
#3 A good hedge against a bear market
Experts around the world are anticipating a major crash in the stock markets. Gold is also entering a bear market; more and more companies are investing in Bitcoin to hedge against the stock market. Companies like Tesla and MicroStrategy have invested billions of dollars in Bitcoins, promotion mass adoption, and Bitcoin’s value.
#4 Not just “dark money”
Imagine going to burger king and paying in Bitcoin or buying the new Halo game for your Xbox in Bitcoins. All this can be done since multiple top-tier companies now accept Bitcoin as a legitimate payment option. You can even recharge with Bitcoins; if you are in New Zealand, you can get paid in Bitcoins. All this is showing how the world is evolving and understanding that Bitcoin is more than just “dark money” or a “bubble,” this day to day use of Bitcoin is also contributing to its value.
#5 Layer 2 solutions
Bitcoin is the first of the cryptocurrencies. Hence it is not perfect; there are many flaws in the system, the biggest being the transaction speed is slow. It takes around 10 mins for a Bitcoin transaction to take place; on the other hand, Visa or MasterCard can process fiat transactions in seconds.
This slow transaction speed could be a challenge since it makes Bitcoins virtually useless in the type of transactions mentioned above. It’s why many Layer-2 solutions were thus introduced by the community, like the Ethereum Plasma network and Bitcoin Lightning Network. With these layer 2 solutions, users can withdraw or send Bitcoins and complete the transaction in some seconds and decrease the fees, effectively increasing local adoption and increasing Bitcoin’s value. Expect this trend to continue as innovations continue to push for more mass adoption.
Bitcoin’s adoption increases its value, but to increase adoption in countries like India, exchanges like WazirX, which introduced a fiat pair to buy Bitcoin in India, also played a major role. Introducing a fiat pair (BTC/INR) facilitates users to buy Bitcoins in India with INR, which is way more convenient and cost-effective than buying Bitcoin or any other cryptocurrencies with foreign currency.
There have been several predictions on Bitcoin’s price already. We’ve even covered the top 5 Bitcoin price predictions for 2021 in a separate post. And Bitcoin’s hype isn’t just driving up its own price. It’s causing ridiculously high price predictions for Ethereum as well – as much as $5000 in 2021! Certainly, a great time to be in the market, don’t you think?
The price prediction is based on data collected from various sources. This is not an investment advice. Crypto investing is high risk activity, and User should do their own research, including obtaining appropriate professional advice before taking any investment decision.
The blockchain, a distributed digital ledger, is what Bitcoin is based on. As the name suggests, blockchain is a linked database made up of blocks that store information about each transaction, such as the date and time, total amount, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological order to form a digital blockchain. Entries are linked in chronological order to form a digital blockchain. Blockchain is decentralized, which means any central authority does not control it.
Bitcoin may be invested in two ways: through mining or exchanges. Bitcoin mining is carried out by high-powered computers that solve challenging computational arithmetic problems that are too difficult to complete by hand and complex enough to tax even the most powerful computers. WazirX, a Bitcoin exchange, is another alternative.
The blockchain is the foundation of Bitcoin. It is a decentralized, distributed ledger that tracks the provenance of digital assets. The data on a blockchain can't be changed by design, making it a real disruptor in industries like payments, cybersecurity, and healthcare.
There are 18,730,931.25 Bitcoins in circulation as of June 2021. The total number of Bitcoins that would ever be there is just 21 million. On average, 144 blocks are mined every day, with 6.25 Bitcoins per block. The average number of new Bitcoins mined every day is 900, calculated by multiplying 144 by 6.25.
Bitcoin is a decentralized digital currency that may be purchased, traded, and traded without intermediary like a bank. Bitcoin is built on the blockchain, which is a distributed digital ledger. Wei Dai suggested a new kind of money that relies on cryptography rather than a central authority to oversee its production and transactions on the cypherpunks mailing list in 1998. Bitcoin was the first application of that notion. In 2009, Satoshi Nakamoto sent out the first Bitcoin specification and proof of concept to a cryptography mailing group.
In India, Bitcoin is not illegal. Because of cryptocurrency's rapid evolution, policymakers and regulators seemed to have recognized the chance to accept the new technology early. From the infamous 'RBI ban' in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to develop, India has seen its fair share of ups and downs when it comes to Bitcoin regulation. Last year, the Supreme Court Of India approved the use of Bitcoin throughout the country. According to the Supreme Court, the existence of Bitcoin or any other cryptocurrency is unregulated but not unlawful.
Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.
The source code of Bitcoin stipulates that it must have a restricted and finite quantity. As a result, only 21 million Bitcoins will ever be generated. These Bitcoins are added to the Bitcoin supply at a predetermined rate of one block every ten minutes on average. The supply of Bitcoins will be depleted once miners have unlocked this number of Bitcoins. It's possible, however, that the protocol for Bitcoin will be altered to allow for a higher supply.
Bitcoin is a type of cryptocurrency that was first introduced in January 2009. It is invented based on the key concepts and notions presented in a whitepaper by Satoshi Nakamoto, a mysterious and pseudonymous figure. The name of the individual or people who invented technology is yet unknown. Bitcoin promises reduced transaction fees than existing online payment methods, and a decentralized authority controls it, unlike government-issued currencies.
Bitcoin is the first application of the concept of "cryptocurrency," first articulated in 1998 on the cypherpunks mailing list by Wei Dai, who proposed a new form of money that relies on cryptography rather than a central authority to manage its creation and transactions. Satoshi Nakamoto published the initial Bitcoin specification and proof of concept on the cryptography mailing list in 2009. Satoshi exited the project in late 2010, with little information about himself available. Since then, the community has evolved, with numerous people working on Bitcoin. Satoshi's anonymity has sparked unfounded fears, many of which may be traced back to a misunderstanding of Bitcoin's open-source nature.