India’s first bitcoin ATM


What is Important?
UPSC perspective:
Prelims:Bitcoin ATM
Mains:Objectives


Why in News?

India’s first Bitcoin ATM kiosk launched in Bengaluru

Bitcoin ATM

*A Bitcoin ATM is a kiosk that allows a person to exchange Bitcoin and cash.
*Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash.
*In some cases, Bitcoin ATM providers require users to have an existing account to transact on the machine.
*This kiosk is available to registered clients of Unocoin. The clients will have the capacity to purchase or offer up to 10 Bitcoins — one of the high esteem crypto currencies every day. In any case, every one of the exchanges should be led in Indian rupees which will then be changed into the money of decision of the consumer.
*Clients risking the use of Bitcoins will have to register by using their mobile number and entering a password. A confirmation procedure is started amid which subtle elements, for example, PAN number, telephone number, address, bank details, and others must be outfitted. It utilizes an intricate system for both deposits and withdrawals, with the withdrawals requiring an earlier demand and 12-digit OTP.

Objectives

*Bitcoin is a cryptocurrency, a form of electronic cash.
* It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.
*Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
*Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009.
* Bitcoins are created as a reward for a process known as mining.
*They can be exchanged for other currencies, products, and services. Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
* Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.
* Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
Bitcoin not legal tender in India & it will further cautions investors who have been putting their cash as it is not regulated by any government body.




India’s first bitcoin ATM India’s first bitcoin ATM Reviewed by The Hindu Current Affairs on October 21, 2018 Rating: 5

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