Bitcoins: Will It Make A Difference?

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The Indian economy is in shambles and we're having a hard time trying to combat the global onslaught coming our way. The rupee keeps on falling and the sensex haven't seen days as worse as these. And while we're at this dark time and age, there remains one untouched entity in the cyberspace that is well above and beyond the economic warfare that embraces us. It is Bitcoins.

Wait, What?

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There are two bewildered faces out there; the ones who know such a thing exists and a few who're completely baffled by it. For beginners, Bitcoins is a virtual currency that is exchanged over the internet. What makes this truly stand out, you ask? Simple, it does not exist in the physical form, is completely encrypted, and cannot be traced. Bitcoin in a cryptocurrency that can be generated and traded on the worldwide web without any hassle. The Bitcoin market has a strictly finite supply of 21 million bitcoins that are exchanged over time by various users.
The system is designed in such a manner that it automatically regulates the generation of Bitcoins to ensure a steady growth of the currency with minimal inflation. Other than that, you can sign in to create your own bitcoin address for free and go around trading in them.

Will That Bring About A Change?

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Think about it, bitcoins are solely traded on the online sphere, meaning there is no production cost of the notes and the coins and you can carry thousands of them on your smartphone without any hassle. The trading is encrypted guaranteeing that nobody can mess around and try to siphon off with your precious coins. This encryption is untraceable, which can work either way but proves to be a plus point for the ones trading in illegal activities. Because of the untraceable quotient, a person can transfer huge amounts without paying the tax and other legal payments necessary to do the transaction. Also, the fixed sum of 21 million coins guarantees that the inflation will be kept in check. Another important aspect is the value of bitcoins; it is usually determined by the supply and demand, equivalent to a precious metal like gold.
Unfortunately though, there is a dark side to this, as the supply and demand can never be comprehended. The pricing of bitcoins tend to drastically vary on a daily basis. For instance, the current rate of bitcoins as of today was 7191 Rupees but was half of this few months ago. This value may rise or fall depending upon the bitcoins in circulation. Also, since there is no central authority monitoring the supply and demand, the liquidity is at an all-time low.

What Does That Hold For Us?

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For starters, this happens to be a platform to transact money without having the fear of someone stealing it. It also acts as a failsafe place to store any money that you might need in desperate situations. Also, since you can access your account from anywhere on the earth means you can carry an ample lot of cash without the worry of someone flicking your wallet and you losing your money. Of course, the fluctuation does scare the living daylight as your investment might end up becoming its half and you may never know.
Maybe Bitcoins may not make sense as a mainstream form of currency, but the global economy can definitely take few pointers and change the way our economy flows. Google Wallet happened to be a hybrid of sorts, but never quite made it big. Hopefully, in another few years once we happen to have a world much more aware of the prowess of the internet can we truly incorporate this technology on a wider scal