Know What is Bitcoin is Bitcoin a Legal Tender in India

JobAleart.in (jobalert)

Bitcoin is a decentralized digital currency that operates without a central authority, like a bank or government. It was created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures transparency and security.

How Does Bitcoin Work?

1. Decentralization – Unlike traditional currencies, Bitcoin is not controlled by any central bank. It runs on a decentralized network of computers.

2. Blockchain Technology – Every transaction is recorded in a blockchain, making it secure and tamper-proof.

3. Mining – New bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems. Miners are rewarded with bitcoins for validating transactions.

4. Wallets & Transactions – Users store bitcoins in digital wallets and can send or receive them using unique addresses. Transactions are verified by the network before being added to the blockchain.

Is Bitcoin a Legal Tender in India?

No, Bitcoin is not a legal tender in India. The Indian government and the Reserve Bank of India (RBI) do not recognize Bitcoin as an official currency. However:

Owning and trading Bitcoin is not illegal, but it is regulated.

India has introduced a 30% tax on crypto gains and a 1% TDS on transactions.

The government is working on a legal framework for cryptocurrencies, but for now, Bitcoin is treated as an asset rather than currency.