Price of bitcoin in india in 2009

Think of Bitcoin as a big record book aka blockchain shared by all the users. When someone pays for something using Bitcoin or gets paid, the transaction is recorded in the record book.

Computers around the world compete to confirm that transaction by solving complicated mathematical problems and in turn, the winner gets rewarded with a very small portion of a Bitcoin. This process is known as mining more on this later. In essence, Bitcoins are electricity converted into long strings of code that have monetary value. Some consider Bitcoin as a commodity, like gold.

Think of it as an investment. You can tuck them away and hope their value increases over the years. The first Bitcoin proof of concept was published in by a person or a group of people known as Satoshi Nakamoto. For years there have been numerous attempts by big media houses like Wired and others to find out who Satoshi Nakamoto is but all those efforts have gone in vain. It is said that Satoshi Nakamoto left the Bitcoin project in and still holds around 1 Million Bitcoins.

This brought the real Satoshi Nakamoto to life after a five-year hibernation. This is the same forum that he used to introduce bitcoin for the first time back in Only to be soon debunked by Bitcoin enthusiasts on Reddit and later by Wired. The big record book or ledger is called a blockchain. The file size of blockchain is quite small, similar to the size of a text message on your phone. Every Bitcoin blockchain has three parts; its identifying address of approximately 34 characters , the history of who has bought and sold it the ledger and its third part is the private key header log.

The first two parts are quite easy to understand. The third one is a bit complex — this is where a sophisticated digital signature is captured to confirm each and every transaction for that particular Bitcoin file.

This also means people can see the history of your Bitcoin wallet which is a good thing because it adds transparency and security.

Also, it helps deter people from using Bitcoins for illegal purposes. The integrity and chronological order of the blockchain is enforced with cryptography. In addition to archiving transactions, each new ledger update creates some newly-minted Bitcoins. The number of new Bitcoins created in each update is halved every 4 years until the year when this number will round down to zero.

At that time no more Bitcoins will be added to circulation and the total number of Bitcoins will have reached a maximum of 21 million. No one knows how much bitcoin will be worth but we have collected bitcoin price predictions from pro-bitcoiners and bitcoin evangelists. There are at present no laws in Japan regulating the use of bitcoins. The amendment to the Payment Services Act included virtual currency exchanges regulation.

Virtual currency exchanges operating in Japan will be required to register with the Financial Services Agency. The amendment will be effective by early June in Bank Negara Malaysia officials apparently met with local bitcoin proponents in November to learn more about the currency.

The Central Bank does not regulate the operations of Bitcoin. The public is therefore advised to be cautious of the risks associated with the usage of such digital currency. Malta currently does not have any regulations specifically pertaining to bitcoins, nor does there appear to be any official government statement on the recognition or policy towards the bitcoin.

In October , a Maltese company launched the first bitcoin hedge fund. Virtual currencies such as bitcoins currently do not fall within the scope of the Act on Financial Supervision Wet op het financieel toezicht of the Netherlands, as the Dutch Minister of Finance, Jeroen Dijsselbloem, recently emphasized.

He emphasized that currently, despite the watchful eye of government authorities on the future development of virtual currencies, in principle the consumer is solely responsible for their use. The Dutch Central Bank De Nederlandsche Bank, DNB recently called attention to the risks posed by the purchase of virtual currencies, including bitcoins and litecoins, [91] and warned consumers to be wary.

Nevertheless, Dutch regulators have not imposed licensing restrictions on virtual currency businesses. On May 14, , a district court in a decision in a civil suit involving an uncompleted Bitcoin transaction between two parties, ruled that Bitcoin, like gold, is a medium of exchange that is an acceptable form of payment in the country but that cannot be defined as legal tender, common money, or electronic money.

However, the Reserve Bank has no direct power over any form of alternative payments medium. Who knows at this point? There is still a lot for the world to learn on this issue. It appears that Nicaragua has not yet promulgated any legislation regulating bitcoins, nor has the Central Bank of Nicaragua issued any rulings or guidelines on the subject. However, news reports indicate that bitcoins are being used in the country. Simon is reportedly interested in promoting the use of bitcoins in Nicaragua and advanced some ideas related to their use.

The Norwegian Tax Authority has issued a principle statement that bitcoins will be treated as capital property, at least for tax-related purposes. Capital property legislation allows for deductions for losses and taxes on winnings. Although travel currencies are exempted from the capital gains tax, bitcoins are not as the bitcoin and other virtual currencies are not recognized as travel currencies. The use of the bitcoin in Poland is not regulated by a legal act at present.

On December 21, , the Russian website Coinspot. Wozniak was more certain about the taxation of bitcoin transactions. He said that all types of income must be taxed under Polish law, and the law makes no distinction among the types of payments used to conduct transactions, including bitcoin payments.

According to him, all income received from bitcoin transactions is subject to reporting and taxation. In May , Polish Tax Administration issued a statement to the effect that the value-added tax on goods and services will be imposed nation-wide on profits received from sales of Bitcoin.

The study asserts that Bitcoin is considered a bidirectional virtual currency payment model virtual currency scheme type 3 in which users can both buy and sell virtual currency with legal tender and with which they can purchase goods and services in both the real and virtual worlds. The press release states that because there is no central authority to ensure the finality and irrevocability of payment orders and no certainty of their acceptance as a means of payment, bitcoins cannot be considered a safe currency.

Their issuance is made by unregulated and unsupervised entities and is therefore not subject to any prudential requirements. The system is also not subject to any oversight activity.

The bitcoin has no specific legal framework in Portugal, either at the level of its creation or at the level of its use, that defines clear rights and responsibilities for all parties involved in the payment model. In its report, the ECB recognizes the existence of Bitcoin as an innovative model of virtual currency.

The press release reports that Bitcoin is understood as a payment model of bidirectional virtual currency, in which the virtual currency competes with legal tender e. As this reality could change substantially in the future, the European central banks are monitoring the phenomenon and may eventually recognize and act on payment models of virtual currency.

There are at present no legal acts that specifically regulate the use of bitcoins in the Russian Federation. According to a report prepared by the Russian law firm Tolkachev and Partners, however, the use of bitcoins can be restricted according to article of the Russian Civil Code, which recognizes the Russian ruble as the exclusive means of payment in the Russian Federation and requires that all prices for financial transactions conducted in Russia be defined in rubles.

German Gref, president of largest Russian government-owned bank, Sberbank, stated in a recent interview that Russian authorities are monitoring developments related to the bitcoin.

Additionally, he said that the issuance of virtual currency can be initiated in Russia based on one of the existing national online payment systems. Legislation proposed by the Ministry of Finance recognizes conducting transactions in Bitcoin as a misdemeanor and imposes fines for dealing with cybercurrencies and monetary surrogates.

In December , the MAS reportedly decided not to intervene on the question of whether businesses can accept bitcoins as a means of transacting goods and services. In January , the Inland Revenue Authority of Singapore reportedly laid out tax advice regarding the purchase, sale, and exchange of bitcoins for local businesses and individuals in an email response to queries on bitcoins: Instead, the supply of Bitcoins is examined under GST and varies according to how the service is provided.

On December 23, , the Ministry of Finance of the Republic of Slovenia issued a formal opinion about the status of the bitcoin and other virtual currencies in response to a request from the Tax Administration of the Republic of Slovenia.

According to the Ministry of Finance, the existing legislative framework does not contain provisions applicable to businesses involved in bitcoin trading. Commenting on the opinion, the Slovenian news service Beforeitsnews. Thus some income will be taxed. Income made by individuals is subject to standard income tax provisions, irrespective of the form. Personal income tax is not paid on capital gains. Individuals who generate income by selling bitcoins will not pay income tax. At that [sic] profits derived from trading and mining Bitcoin are taxed as income under the provisions of Slovenian personal income legislation.

However, they may be considered digital goods or things under the Civil Code, [] and transactions with bitcoins may be governed by the rules of barter contained in the Civil Code, [] according to the analysis of one Spanish law firm.

Spain was the second country in the world to seize bitcoins during an investigation of fraudulent transactions conducted with bitcoins, according to a November report by El Mundo. There are at present no laws in South Korea regulating the use of the Bitcoin system. However, the president of the Bank of Korea recommended at a press conference on December 12, , that the bitcoin be regulated in the future.

The decision has been appealed by the Swedish Tax Authority. Handel med bitcoins [VAT: Trade with Bitcoins] Oct. The Authority has not issued a determination of the applicability of the Income Tax Act with respect to the potential capital gains from bitcoins.

The Swedish Financial Authority has made the determination that bitcoins are subject to its authority as trade in bitcoins i. On October 6, representatives of the Swedish Enforcement Authority announced that that it will start to investigate and seize Bitcoin holdings when collecting funds from indebted individuals.

On April 24 Swedish Tax Authority published a guideline on how it will view and tax mined bitcoins for the tax year. Unless specific conditions are met the digital currency mined is considered income from hobby, and generally tax exempt. Additional information on this topics is available. As of January 13, , Taiwan had not passed any legislation regulating the use of bitcoins. If financial institutions use bitcoins, according to the warning, the Central Bank and the FSC may, in accordance with laws and regulations, take necessary regulatory actions at the appropriate time.

According to news reports, the Bank of Thailand ruled the bitcoin illegal on July 29, Other businesses that have licenses have continued operating bitcoin exchanges in Thailand. No formal regulations on the bitcoin exist in Turkey.

One Turkish commentator points out that because Bitcoin is independent of any control mechanism, it is not possible to freeze or seize Bitcoin accounts. Nevertheless, bitcoin use is apparently flourishing in Turkey. In the latest quarterly reports from the Bank, Bitcoin is expressly excluded. L 7, http: L 1, http: The Bitcoin Example], Focus No. As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created bitcoins.

Monitoring the Use of Bitcoins Jan. And two years ago?