Feasibility of Bitcoin in India-A Discussion

Abstract

The Indian economy is now moving towards digital currency with each passing day. However, the discussion has moved from digital currency to cryptocurrency, more specifically towards ‘bitcoin’. Cryptocurrency is a digital asset which works as a medium of exchange and uses cryptography to secure its transactions, to control creation of additional units and to verify the transfer of assets. Bitcoin is a type of cryptocurrency; Reserve Bank of India (RBI) has advised caution on use of bitcoin but it is not illegal in India. In this paper, bitcoin is analysed as a medium of exchange and as an investment in the Indian scenario. It isconcluded that, in the near future, bitcoin is not feasible as a medium of exchange, however, it is imperative to accept it as an investment.