Trading in Cryptocurrency in India

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Online Cash Bitcoin Could Challenge Governments, Banks - Techland - TIME.comBitcoin is potentially revolutionary for several reasons. For one thing, artificial currency inflation is impossible. In most countries, a central bank controls the money supply, and sometimes (such as during the recent economic crisis) it may decide to inject more money into an economy. A central bank does this essentially by printing more money. More cash in the system, however, means that the cash you already hold will be worth less. By contrast, because Bitcoin has no central authority, no one can decide to increase the money supply. The rate of new bitcoins introduced to the system is based on a public algorithm and therefore perfectly predictable.More revolutionary perhaps is that because no intermediaries are needed for Bitcoin transactions, governments will have no intermediaries to regulate. And Bitcoin's anonymity makes it difficult for governments to go after end users directly."Even if the Bitcoin.org site were taken offline and the Sourceforge project removed, the currency would be unaffected. Like BitTorrent, taking down any of the individual computers that make up the peer-to-peer system would have little effect on the rest of the network. And because the currency is truly anonymous, there are no identities to trace."Bitcoin - Wikipedia, the free encyclopediaAs opposed to conventional fiat currency, Bitcoin has no centralized issuing authority%5B14%5D. There is a limited controlled expansion of the monetary base hardcoded in the Bitcoin software, but it is predictable and known to all parties in advance.%5B4%5D Inflation cannot therefore be centrally manipulated to effect redistribution of value from general users.Crypto Currency - Forbes.comBitcoin is different: It wholly replaces state-backed currencies with a digital version that's tougher to forge, cuts across international boundaries, can be stored on your hard drive instead of in a bank, and--perhaps most importantly to many of Bitcoin's users--isn't subject to the inflationary whim of whatever Federal Reserve chief decides to print more money."Bitcoin is designed to bring us back to a decentralized currency of the people," says Andresen, a 44-year-old software developer and entrepreneur based in Amherst, Mass. "This is like better gold than gold."I bet RBI will ban this! but how!! there is no central core!.TO ban bitcoin is to ban internet!! live P2p
 
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Can someone tell who guarantees bitcoin and what is the asset behind bitcoins unlike Rupee which is guaranteed by governor. It simply means "System crashed, bitcoin millionaire trashed"
 
Err 100s of questions come to mind... Don't no which one to ask 1st lolz... I guess I will ask the stupid question 1st... If the govt can't trace my transaction does that mean that I can safely send money to the terrorist organizations showing my support??? P2p money? Seriously?
 
Err 100s of questions come to mind... Don't no which one to ask 1st lolz... I guess I will ask the stupid question 1st... If the govt can't trace my transaction does that mean that I can safely send money to the terrorist organizations showing my support??? P2p money? Seriously?

What will they purchase with these bitcoins?? Counter strike weapons:lol::lol: or downloading pizza in stomech via torrents
 
technology is a double edged sword.Its been 10 years since brian cohen created p2p and yet no govt or org have been able to shut it down.The only down side is that no electricity=no money.I still believe that people will still prefer those old cash notes than plastic or chip or digital or sacks of gold coins
 
jokes apart. Bitcoins are in fact are a serious threat to current economic structure. In extreme scenarios it can destabilize political controls. In fact it is more of a threat.
 

you can do almost anything with bitcoin, and no you don't lose your btcoin if your system crahes, it's just hash key which can be saved anywhere, you can transfer btcoin to banks, paypal etc.

https://en.bitcoin.it/wiki/Selling_bitcoins

i know some guys who are making 200 usd per day using btcoin, there was a report sometime back that all governments will be banning them in max 1 year, but again it imposable since this is p2p
 
Is it really a good idea to spend real cash on electricity to convert it to bitcoins, which probably are worth less than the money you spend on the electricity+ the lowering of your Hardware life.
 
Lets put this in very simple terms.

The value of any currency is directly proportional to its desirability.

How many ppl that have stuff you want will accept payments in bitcoin ?

First solve that problem then you can worry about govts trying to shut bitcoin down.

A currency has to be co-opted by govt to be successful in the first place. Usually this happens when the govt tells you they will accept taxes in said currency.

Anyway to understand this some more, see their forum FAQ.
 
Lets put this in very simple terms.

The value of any currency is directly proportional to its desirability.

How many ppl that have stuff you want will accept payments in bitcoin ?

First solve that problem then you can worry about govts trying to shut bitcoin down.

A currency has to be co-opted by govt to be successful in the first place. Usually this happens when the govt tells you they will accept taxes in said currency.

Anyway to understand this some more, see their forum FAQ.

the way it is swinging now is that some affiliates already starting to have the option is making payments in bitcoin esp in porn industry in states, now if you get payment via bitcoin is is secure and untraceable , and now some service providers are hoping in accepting payments in bitcoin to buy some services , as more , more peole jump on the more it grows, you will have to start bitcoin mining to begin , but it is helpful if service providers take bitcoin , esp in case like india where some recent changes in paypal has forced small web masters to shut totally .

now how to make bitcoing into real hard currency, if you are an American with bank ac/ there you can use dolwa as a payment processor and move bitcoins there and from there to your bank in USD. in states laws are simple they don't care how and where you get your money from as long you pay taxes on it .
the nature of anonymity on bitcoin makes it dangerous for govts , because it is untraceable .

BitCoin, the Most Dangerous Project Ever? - Slashdot
 
It will be a joke that Bitcoin will be accepted by governments. One day Bitcoin has to crash, or else it will be crushed. Dollar's acceptability in most of the worlds countries is one of the biggest reason of US being powerful. Currency has lot of Political & strategic motives too.

---------- Post added at 03:31 PM ---------- Previous post was at 03:30 PM ----------

SO if you are happy being Bitcoin billionaire. Soon you will be on roads.
 
the way it is swinging now is that some affiliates already starting to have the option is making payments in bitcoin esp in porn industry in states, now if you get payment via bitcoin is is secure and untraceable , and now some service providers are hoping in accepting payments in bitcoin to buy some services , as more , more peole jump on the more it grows, you will have to start bitcoin mining to begin , but it is helpful if service providers take bitcoin , esp in case like india where some recent changes in paypal has forced small web masters to shut totally .
Currently reading Satoshi's paper to get a better handle on what bitcoin means.

The bolded bit you referred to is one area bitcoin would help because it allows a reduction in transaction costs. Micro payments make sense and dependent on volume ultimately makes operations feasible.

The more regulation you have on a transaction the more you limit its minimum size so payments below that amount are not financially feasible. What bitcoin promises to do is reduce that transaction cost theoretically to zero, but in reality its up to the CPU power you have to create the key to insert into the currency. Fine, a CPU is a one time cost and then you are good to go. In a way its cutting out the middle man, well, if you do that then it just got cheaper to do business between buyer & seller.

There's quite the learning curve here. Taking the idea of single discrete encryptions to sign say files that uniquely identify them with PGP and chaining it to form a currency 🙂


now how to make bitcoing into real hard currency, if you are an American with bank ac/ there you can use dolwa as a payment processor and move bitcoins there and from there to your bank in USD. in states laws are simple they don't care how and where you get your money from as long you pay taxes on it .
the nature of anonymity on bitcoin makes it dangerous for govts , because it is untraceable .

BitCoin, the Most Dangerous Project Ever? - Slashdot
Dangerous is hyperbole i think. bitcoin is more dangerous to intermediaries like paypal because it makes them redundant. bitcoin is replacing the currently required trust model in electronic transactions with a crypto model. Thats the revolutionary leap in thinking here. Cutting out the middle guy, any middle guy.

Govts do not like it when they cannot track payments because then there is no way for them to charge a cut out of them. If they cannot do this then they deem it illegal. Thats basically the general principle.

Converting e-money into real money brings in problems of laundering. This is a harder problem to solve. But its something that appears much later when the system has more acceptance and the amounts transacted are significant. Before that happens one has to answer the question -- how scalable is bitcoin to begin with ? dunno.

If you consider there is so much resistance in India to just transferring small amounts of money with cellphones because the RBI makes the claim that it could be used for illegal activities. We still have this tendency to think small. A philosophical change is required before we can enter the big league. Such a system like m-pesa is in operation by vodafone in Kenya and works quite well to send money from the citites to the villages in the interior. It would make a significant impact here but no,not in india, not yet because they want to know WHO really sent the money and WHO received it and it must be undeniable.

RBI says they will allow it after UID comes in. That way they have a way of uniquely identifying who is sending what rather than some useless phone number, but its been shown that UID as currently conceived, implementation wise, will not be very effective, in fact am convinced the implementation idea is as good as dead in its current avatar. But there was an alternative proposed in the UID thread using cellphones that might have more chances of implementing a UID scheme.

Just so its clear i want to stress that the idea of UID is NOT dead, just the currently conceived implementation of it. Nothing to stop a better way of doing UID from coming up.

Will look at that /. link later, there is already quite a bit to read for now.
 
Here's an interesting article from an economist, ppl i've been interested to hear asking the challenging questions rather than techies.

Imagining a world without the dollar-WAPO-Apr 26 2011

Take this snippet for instance...

While there have already been some attempts to create a true electronic currency, such as Bitcoin, these have had difficulty getting off the ground. It is not hard to see why. If it is possible to imagine one private electronic currency, then it’s possible to imagine several, and there would be no guarantee that other people would accept the particular electronic money you use.

Moreover, these payment systems would be only as reliable as the individual companies’ software and servers, which would be impossible for end users to judge. Also, nothing would ensure that the electronic money you accumulate would hold its value, and nothing would prevent the operators of the platform from issuing more, in the first instance to themselves. If people worried that their electronic money was losing value, they would rush to convert it into merchandise; others might simply refuse to accept it as payment. The whole scheme would come crashing down.

That’s why we have the Fed. It regulates the supply of money. It supports the payments system, providing the exceptional liquidity needed for its smooth operation in turbulent times such as those following Lehman Brothers’ failure. It inspects the banks and works with the Federal Deposit Insurance Corporation, which provides deposit insurance to bolster confidence and prevent bank runs.

Critics of the dollar are having a field day. But when I think about our current monetary arrangements, I am inclined to paraphrase Winston Churchill on democracy: Ours is the worst possible system, except for all the others.

The idea that bitcoin will be banned by govts is just hyperbole or to put it more bluntly, blatant self-promotion by bitcoin. Bitcoin ISN'T anonymous as is suggested by the thread title either. There are issues with scalability as well.

Here's another from Slate

My Money Is Cooler Than Yours-Slate-May 18 2011

Bitcoins also offer a fascinating case study for economists and anti-Fed zealots. Right now, a coin is worth about $7. In April, it was worth $2, and in October, about 89 cents, as traded on the Mt. Gox online exchange. But meddling central bankers had nothing to do with the price changes. Right now, there are about 6.2 million Bitcoins, worth about $49 million. The decentralized system will create a total of 21 million coins total. This money supply is fixed and public. Thus, people trading in Bitcoins are the only ones determining their value.

There will be a maximum of 21 million coins, you can see the value of the money increasing over time as more ppl get interested in it. So the question is how do you do micro-payments in a system that isn't stable as yet. It seems best strategy is to buy bitcoins as they will be more valuable in the future.
 
As the maximum limit of bitcoins is 21 million, I see the whole system benefiting the earlier adopters.The mining will slow down as the number of coins is going to decrease as new members sign up.Don't you think the system will experience massive deflation at some point !?Jeez! Just Google massive deflation and every article discussing bitcoins pops up.
 

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