Bitcoin Value Continues To Surge While Miners From China Control The Flow

The major form of crypto-currency, i.e. Bitcoin has gone on to become world’s biggest financial form of service with market worth recorded higher than that of Visa. Putting up precisely, the value of Bitcoin now stands at $508.97 billion, while Visa’s lingers at $460.65 billion, as per what Companiesmarketcap has published.

Further, in this financial loop, the Bitcoin price has crossed the $27,000 mark to reach new figure at $27,375 as per latest from the Coindesk. To draw a comparison between Visa and Bitcoin, where Bitcoin is a sort of peer-to-peer network based on dense software framework, the other is a business set up for profit, while this digital currency is claimed to be the 11^th biggest with activities scattered globally, going by its market cap and is therefore positioned ahead of Coca Cola, Samsung, Walmart etc.

However, this is an interesting aspect ingrained therein, worth noticing that following its mate Bitcoin, Visa has started showing “keen leaning” towards crypto-currencies which can be settled for fiat-basis and such is therefore a prime indication of acknowledgment of its rising tide and worth, when we give way to the specific exchanges devoted to deal in it to enable easily procurement of goods and services and this is what is held by its chairman and CEO Alfred F Kelly Jr.

Visa has made up with scores of prominent crypto-businesses, say 25 in number, with global functioning in a bit to bring-in a visa imprint in the accounts through which crypto conversion is facilitated on the fiat-currency basis, following which, funds are pushed into the wallet to be used at locations where visa is accepted.

Within such a dreamlike Bitcoin flight, CoinBase CEO  and co-founder Brian Armstrong has issued a cautioned crypto-investors on the risk running along the asset set. He circulated his apprehension through a blog, that said, “We cannot emphasize enough how important it is to understand that investing in crypto is not without risk. For one, crypto can be a volatile asset class-often more so than the types of traditional financial instruments that most investors are used to. For example, this means that the market can move in either direction much faster than equity markets.”

Has Bitcoin got any legal sanction in India?

While pondering over the question whether Bitcoin is legal in India, it lacks any standard legal authorization and regulation here, by any central authority. Also, there are not placed any set of rules and guidelines focusing Bitcoin and hence, any such transactions are not considered purely secured and are risky but still, such are not pushed out of legal circle and are not considered illegal.

The apex court of the country, did pronounce in its ruling dated February 25, 2019 that government need to formulate policies about it but nothing has been declared so far.              

Anyhow, One Bitcoin is priced at around 2 million or 20 lakhs in INR.

Can Indians invest in Bitcoin in India, if so how?

Such query (Can I invest in Bitcoin in India?) has gone on to become pretty popular nowadays, in today’s times when safe and lucrative investment options are being hunted down across the world and referring to Bitcoin, riding high and stout on underlying blockchain framework, such is the widely preferred crypto-currency to put money into. Whatever the case of your interest may become, you can invest into Bitcoins in any of the following ways:

• Be approaching crypto-currency exchanges,
• By indulging in P2P transactions,
• Prepare your own Bitcoins through mining process,

Do Bitcoins Bear Made In China Stamp?

The question brews across forums, discussions and at various occasions that is Bitcoin being controlled by China? There are reasons pretty valid behind this fact, especially since ASIC miners have resorted to massive production, giving way to concerns about China’s dominance over its hash rate.

The belief is held commonly that since 2016, those mining Bitcoins, especially from China, are in major comfort zone and as such miners in crypto-currency accomplish the task of making Bitcoin network safe and robust and also to generate fresh stock of Bitcoins. Not now surprisingly that any group with major stake and hold and control over will have their say in its hash rate as well, other than the nuances of network including the rewards sought there upon.

To make it more precise, University of Cambridge Centre for Alternative Finance released a world map showing the regions with Bitcoin miners in dense presence, which indicates most of the miners are located in different parts across China and who influence nearly 65% of Bitcoin’s hash rate (certainly a lion’s share) every month calculating an average. This is certainly far high which is trailed by US, Russia and Kazakhstan, but which gets not more than 6% or 7% at the most, control over hash rate.

Besides, China is in complete dominion of Bitcoin mining industry since beginning and we can refer to Bitmain and Canaan Creative, which had their take-off in China and which are early launches in the ASIC mining industry. May be, such is the reason that making entry into mining in China is easier than what exists in other parts of the world. Consumers in China can easily get relaxation in taxes and duties which are levied on shipping of ASIC units outside the country and latest range of mining hardware is also available freely across China.

Finally, lower costs on energy and easy an abundant availability of hardware, software and cutting-edge skills make China a perfect abode of crypto-currency mining, which culminates in its glory experienced as of today.

Faisal Mahmood