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Bitcoin investments new attraction for Indians, say experts

Supreme Court bench headed by Chief Justice Dipak Misra recently sent notices to concerned authorities asking to frame an effective mechanism for flow of bitcoin

ANI  |  New Delhi [India] 

Bitcoin heading to November split: Experts

 

Commenting on the thriving scene in India, co-founder said, "Investing in has emerged as a significant trend in the past few months. We have enabled Indians to buy an international asset in a large scale and help them contribute to increase in wealth."

According to Goenka and others involved in this industry, the key benefits that most Indians see in are as follows:

• According to leading crypto-currency exchanges in India, crypto-currency is gaining popularity, primarily as a financial asset.

• Many startups in believe remittances are a huge potential market for them.

transactions are more economical than digital transfers.

allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

• Despite an 8.9 percent drop in 2016, has retained its position as a top receiver of bitcoin-related remittances worldwide, as per a World Bank report.

• Many startups in believe remittances are a huge potential market for them.

transactions are more economical than wire transfers.

EthXpay co-founder Subharansh Rai said, "makes payments fast and inexpensive. Payment portals, like banks, levy transaction charges on beneficiaries. With bitcoin, there are no overhead costs or extra charges, making it a more appealing form of payment as workers get paid closer to real wages."

The global trade volume is estimated to be about USD five billion a day. India's annual trade volume stands at USD 20 billion. claims that there are more than 1.5 million users in and 200,000 users are being added each month. Most users buy bitcoins as a financial asset.

India's reluctance to encourage mainstream usage is more pronounced in the light of developments taking place in other parts of Asia.

Japan continues to be a trendsetter for use and South Korea is also showing a marked interest in blockchain, especially after electronics manufacturer Samsung announced in May that it was exploring corporate use for the software powering Ethereum. China and Russia view the digital coin business with sceptism and consider it to be illegal.

Rai said, "is already three years behind USA, Japan and Hong Kong when it comes to crypto-currency adoption. We believe this technology will be a game-changer, probably even bigger than what the internet did for us in the 90s. The current concerns by Reserve Bank only accelerate our need to engage with authorities and regulators to generate awareness about blockchain, which powers the use of and other crypto-currencies."

To regulate the flow of bitcoin, a Supreme Court bench headed by Chief Justice Dipak Misra recently sent notices to the ministries of finance, law and justice, information technology, market regulator SEBI and the RBI to frame an effective mechanism.

Currently, the RBI regards crypto-currencies as a violation of the country's existing foreign exchange norms. It has largely maintained a measured, cautious and vigilant approach about popularizing the use of

Technology enthusiasts, however, believe that the craze for crypto-currency is on the upswing in

Recent positive reviews and growing customer acquisition levels have made companies bullish about the market in

"Investing in isn't a get-rich-quick method. Investors must spend time educating themselves about and the technology behind it, much like real estate or stock market," said Rai.

was created in 2009 by a person using the alias Satoshi Nakamoto. The acquiring of bitcoins is hassle-free as several market places called "exchanges" allow people to buy or sell it using different currencies. Mt.Gox is the largest exchange.

The research conducted by Cambridge University in 2017 revealed that there are 2.9 to 5.8 million unique users using a crypto-currency wallet, most of them using Currently, 1 equals over Rs.48.

First Published: Sat, November 18 2017. 14:20 IST
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