Cryptocurrency (Bitcoin)

As per Wikipedia A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.^[1][2][3] Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies. Cryptocurrencies use decentralized control^[4] as opposed to centralized electronic money and central banking systems.^[5] The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger.^[6]Also, there are several types of cryptocurrencies that generates in a different way and distributing them to the peers over network.^[7]

It can be understood in following in simple way by following statements

1.    It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

2.    As of January 2018, there were over 1384 and growing digital currencies in existence. The most popular crypto currency is Bitcoin.

3.    "decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation

4.    Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

5.    Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.

6.    The first Bitcoin specification and proof of concept was published in 2009 by an unknown individual under the pseudonym Satoshi Nakamoto who revealed little about himself and left the project in late 2010.

 The Bitcoin community has since grown exponentially. Satoshi's anonymity often raises unjustified concerns because of a misunderstanding of the open-source nature of Bitcoin. From a user perspective, Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and enables a user to send and receive bitcoins.Behind the scenes, the Bitcoin network is sharing a massive public ledger called the "block chain".This ledger contains every transaction ever processed which enables a user's computer to verify the validity of each traBitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money.  Unlike bank accounts, bitcoin wallets are not insured by the FDIC. Many people new to Bitcoin are curious about how to get some.Bitcoin faucets, places where bitcoins are given away for free, have been a part of spreading Bitcoin since the earliest days. But one problem is running out of bitcoins to give! That is why we have figured out a sustainable way to give away free bitcoins with sponsors

Following exchanges are engaged in dealing with Bitcoin

Coinbase

Local bitcoin

Bitquick

Bit bargain

Coin corner

Bittylicious

Mobile Payments

Like with many online payment systems, Bitcoin users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.S. bank accounts or credit cards, personal information is not necessary to complete any transaction.No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.

Indian scenario

Our finance minister has termed the bitcoin as illegal tender on 01-02-2018 budget speech

Blockchain and cryptocurrency committee of mobile and internet association in India headed by Ajeet Khurana is planning to submit a draft to create central repository of users that will help to maintain real time data of cryptocurrency transactions to identify users through Adhar card and PAN CARD.It will be submitted to Govt of India through economic affairs wing which is expected to submit its recommendations in march 2018.

BACC is also planning to develop a code of conduct for dealing in crypocurrency.

International scenario.

Virtual currencies such as bitcoins have shown a clear pricing bubble in recent days as per EU. CONSUMERS CAN LOOSE ALL THEIR MONEY said the EU. These currencies are highly risky and subject to extreme volatile in nature. This warning was published by European commission vice president Valdis Dombrovskis recently. They are arranging meeting of key persons soon in this regard.

Last week germony and france also requested G20 economic authorities to work out possible regulations for crypto currencies.

Bitcoin the well known cryptocurrency has shown rise of 1000% in 2017 but lost its half value so far in 2018.