Skip to main content

Cryptocurrency

Best SIP Funds Online 


On 31 October 2017, bitcoin breached the Rs5 lakh mark, giving speculator returns of 844% in the last 1 year

Whether you go for a game night at your friend's house or are relaxing with friends after work, invariably someone will be talking about the next big investment option. In the past, these discussions were around real estate, stocks, even gold. Now, all such talk is about cryptocurrencies. To be more specific, all such talk is around bitcoins. There is good reason for this interest, every alternate month in 2017 has seen the value of bitcoin hit all time highs. On 31 October 2017, bitcoin breached the Rs5 lakh mark, giving speculator returns of 844% in the last 1 year. Let's read about cryptocurrencies and bitcoins.

What is cryptocurrency

Cryptocurrencies are a subset of digital currencies. "Unlike other digital currencies that can be centrally issued, circulated within a community or geographical location, or tied to fiat currencies or organizations issuing them, a cryptocurrency has very different characteristics," said David Lee Kuo Chuen, economics professor of fintech, Singapore University of Social Sciences.

Cryptocurrencies have become one of the most pressing topics in the financial industry. "It is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units," said Sumanth Neppalli, cryptocurrency and blockchain analyst at Zebpay, an app-enabled bitcoin exchange in India.

What is bitcoin

"Bitcoin was created in 2009. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternatives. Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money or centralized banking systems," said Neppalli. It was created by an anonymous person, or persons, called Satoshi Nakamoto. "It has a limit of 21 million and there were 16.4 million bitcoins in circulation as of June 2016. It is...the most popular cryptocurrency and has the largest market capitalization," writes Lee in his paper 'Cryptocurrency: A New Investment Opportunity?' published in Journal of Alternative Finance, which he has shared with Mint.

But what is the underlying asset? "Similar to the fiat money that we use, cryptocurrencies have no underlying assets. Fiat money has no intrinsic value and is backed by the full faith and credit of the issuing government. Cryptocurrencies derive value from use. As they are accepted by others as a medium of exchange, as they gain more acceptance, they gain more value," said Lee in the paper.

How to access bitcoin

You can either buy it or mine it. "Bitcoins can be obtained by accepting them as a payment for goods and services, and by buying from other people or directly from an exchange or vending machines. Bitcoins can be transacted via software, apps and various online platforms that provide bitcoin wallets. Another way to obtain bitcoin is through mining," said Lee. He further added that bitcoins are created as an incentive for solving the cryptography puzzle using the transaction data, and thus successful miners are rewarded with the newly created bitcoins, on top of transaction fees.

Who creates bitcoin

The process of creating bitcoins is called mining. "In simple terms, bitcoin mining is the process by which miners who leverage high-powered computer software verify transactions by solving complex math algorithms. Miners compete to solve these math problems and the winner receives a reward of a specific number of bitcoins. Miners are also constantly validating transactions that are taking place on the bitcoin network," said Benson Samuel, chief technology officer and co-founder, Coinsecure. Individuals are involved to build the hardware and to set up the machine. Technically, it is the machine that uses its computing power and electricity to solve the complex algorithm and then gets bitcoins as reward for solving the puzzle. Nobody controls the algorithm and the process. Samuel said that with more competition, bitcoin mining hardware has become more advanced. "Mining ensures that the bitcoin ecosystem is self-sustaining. There are various types of mining and mining hardware." According to the white paper producted under the name Satoshi Nakamoto, only 21 million bitcoins can be created.



SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

FCCB buyback

WITH dismal share valuations causing bondholders to redeem, and not convert their foreign currency convertible bonds ( FCCBs ), which until early this year were regarded as one of the most preferred options for raising corporate debt, suddenly seem to have become millstones around the necks of issuers. It is the redemption pressure on cash-starved issuers, coupled with the need to preserve liquidity by mitigating further forex outflow, which seems to have prompted the Reserve Bank of India ( RBI ) to issue the circular permitting buyback of FCCBs. As per the circular, issuers can now buyback FCCBs under the automatic route up to any limit out of existing foreign resources or by raising fresh external commercial borrowings (ECBs,) if effected at a minimum discount of 15% on the book value. Further, FCCBs up to $50 million can be bought back with prior RBI approval out of rupee resources representing “internal accruals”, if effected at a minimum discount of 25% on the book value. I...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now