Bitcoin gains popularity in India, attracts companies

There are now online wallets that allow one to trade, buy vouchers of e-ommerce companies, and even recharge one’s phone in Bitcoin.

Bitcoins’ attractiveness as an investment is high because the number of Bitcoin that can be produced has been limited to 21 million. Sources said 14.5 million Bitcoins had been “mined” already. As a result, the value will keep going up as the end of the supply nears. According to reports, one Bitcoin is issued every 10 minutes; its supply is expected to reduce by 50% every four years.

However, the Reserve Bank of India is not been very comfortable with Bitcoin and has raised warning signals. The first red flag was raised in December 2013 when the central bank highlighted various shortcomings in the transactions of these currencies.