Bitcoin a road ahead

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1. A ROAD AHEAD ABDUL KALAM TV MUHAMMED VALEED A BIKASH SINGH (PONDICHERRY UNIVERSITY) 2. OBJECTIVE OF THE STUDY In this study we are investigating the followings: ã…
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  • 1. A ROAD AHEAD ABDUL KALAM TV MUHAMMED VALEED A BIKASH SINGH (PONDICHERRY UNIVERSITY)
  • 2. OBJECTIVE OF THE STUDY In this study we are investigating the followings: • Find out the legal status of Bitcoin all over the world. • Find out the legal status and its taxation status available in India And after this investigation we are trying to give some suggestion to the taxation on cryptocurrencies in India.
  • 3. What is bitcoin • Bitcoin is a form of virtual or digital money, a peer-to-peer, electronic cash system. Bitcoins are based on an open source cryptographic protocol that is independent of any central authority like a central reserve bank or another administrative institution. Bitcoins are created and administrated decentralized within a computer-based network. They can be transfer through a computer or smartphone without an intermediate financial institution. • Bitcoin is a so-called “cryptocurrency” that can be used as a medium of exchange to make payments and facilitate consumer and business transactions – primarily over the Internet. Bitcoin first introduced in the year 2008 by an anonymous group called Satoshi Nakamoto.
  • 4. Why Bitcoin? • It has been a tremendous evolution of transaction from the system of barter to the currency system. Money has been a part of human history for almost 3,000 years. At the dawn of humanity, bartering was used in lieu of money to buy goods. As early man began to rear domestic livestock, one of the earliest forms of barter included cattle, sheep, as well as vegetables and grain. The first known currency was created by King Alyattes in Lydia, now part of Turkey, in 600BC. The first coin ever minted features a roaring lion. Characteristics • Decentralized in Nature: The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them. • It's easy to set up: Compared to traditional Bank Account Bitcoin account can be set up in minutes or even seconds! No questions are asked or no fees are taken. • Anonymity: Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information. • Transparency: bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. Still there are ways people can make it put a shade on Bitcoin network not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address. • Fast: We can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
  • 5. • No intermediary: there is no intermediary or third party while transacting bitcoin so there is no need to pay the commission to them. • Broad applications: The more days passing by, people are getting educated about bitcoins. Now different governments US, Australia, UK and even Un is thinking of using bitcoin and implement it in many government works. Many top companies like Delitte, Accenture, Wipro, HSBC have already either set up their lab or started extensive research on this. • Hedge against risk: As the currency value is constantly degrading and people are facing challenges to keep up with this volatile economy, more often they are finding it as a hedge / security against the currency devaluation. Most experts have pointed towards fears in China and Asia that the yuan could depreciate as reasons for increased investment in bitcoin. • Privacy: the transaction of bitcoin gives a high privacy in their transaction and its details regarding the dealers. • Acceptance: usage of bitcoin has increasing enormously is because acceptance has also increasing. There are now many places where consumers can pay by bitcoin as many companies like Microsoft, Wikipedia, Tesla, Overstock, Canada KFC etc. now accept this as a method of payment. From eateries and coffeeshops through to real estate’s companies and more, bitcoin is now accepted in a wide variety of establishment.
  • 6. Popular cryptocurrencies Name Symbol Founder Real time price Bitcoin BTC Satoshi Nakomoto, 2009 $7317.65 Lite coin LTC Charlie lee, 2011 $125.36 Name-coin NMC Wincent Burham, 2011 $ 1.53 Swift-coin STC Daniel Bruno $ 0.5022 Byte-coin BCN 2012 $ 0.0022 Ripple XRP Chris and Jed, 2013 $0.53 EOS.IO EOS Dan larimer, 2017 $6.26 Monero XMR Monero cor team, 2014 $180.05 Dash DASH Evan duffeid and kyne hagan, 2014 $339.21 Zcash ZEC Zooko wilcox, 2016 $194.35 Ethereum classic ETC - 2015 $15.10SOURCE :(bithumb.com)(2018-mar-30)
  • 7. How it works?
  • 8. Blockchain technology • Most cryptocurrencies are based on blockchain technology. In simple terms, it is a system to trans cryptocurrency. A recent Whitepaper on Blockchain has broken down the concept of blockchain technology in detail. As per the paper, “a Blockchain may be described as a tamper-evident ledger shared within a network of entities, where the ledger holds a record of transactions between the entities. To achieve tamper-evidence in the ledger, Blockchain exploits cryptographic hash functions and store data or information that is generated while transacting in a.” Blockchain technology is at the heart of how cryptocurrencies work. It helps to evade any possibility of fraud and makes any kind of tampering infeasible for the users. It is a support system for the encrypted currency, whereby the transactions are recorded and stored on the ledger. So even if the users are anonymous, it still becomes difficult for anyone to possibly change the data without involving other members on the network.
  • 9. Bitcoin Pricing
  • 10. MAJOR BITCOIN EXCHANGES IN INDIA • UNOCOIN • ZEBPAY
  • 11. BITCOIN ATM OR BTM
  • 12. TAX FREE COUNTRIES • Singapore (bitcoin purchasing consider as investment, so here investments are tax exempted) • Denmark (not a currency) • Belarus • Germany • Cave man island • Slovenia
  • 13. SUGGESTIONS • As Capital Gains • as an investment • as stock-in-trade • as consideration on sale of goods and services
  • 14. Thank you
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