The concept of Bitcoin seems to be surprisingly gaining traction in both Andhra Pradesh and Telangana. Bitcoin is a digital currency/crypto currency that can be used in lieu of the national currencies generally used by us and controlled by central banks. While the two states are not switching to Bitcoin and using it as a form of currency, they are looking into it as a serious investment option.
The idea gained traction after the demonetisation and the encouragement by the central and state governments to switch to digital methods of payments. In such a scenario, Bitcoin seems to be a viable option for the future. Also, cryptocurrency has in the last year reportedly outshone all other investment options. It has seen over three-fold appreciation from Rs 20,000 per unit in February 2016 to the Rs 66,000 it is at present.
Highly secured encryption techniques are used not just for regulation of the generation of the digital currency, but also for the transfer of funds. Bitcoin is the first and most popular form of digital currency even if more have popped up later. The transactions are recorded in blockchain, a virtual ledger. Only 21 million Bitcoins can be generated. With the state government even setting up a Blockchain Institute in the city, it seems like a viable option.
One of the few digital currency exchange platforms in India saw a huge spurt in the number of customers from AP and Telangana. AP itself holds 1500 accounts with this firm. What’s more interesting is, the account holders from AP consist of people from Visakhapatnam and Warangal. People buy these Bitcoins in parts and wait for the price to climb up before selling it.
On an average, reportedly atleast a 1000 Bitcoins get traded per day in India. While it is less compared to other countries like China, where the average number is 1 lakh, it is still more than what the numbers were previously. Corporate Frauds Watch Society has filed complaints against people trading in Bitcoins, calling the transactions illegal. But the police officials haven’t made any strides in reviewing these cases as they reportedly can’t figure out what a Bitcoin is.