Definition
Bitcoin
Bitcoin is the first and best-known cryptocurrency, a decentralised digital asset with a capped supply, recorded on a public blockchain. In India it is a taxed VDA. This is informational, not advice.
Bitcoin launched in 2009 as a peer-to-peer digital currency with no central issuer. New bitcoins are created through mining, and its protocol caps the total supply, a feature often cited by proponents as a form of digital scarcity.
In India, Bitcoin is treated as a VDA: profits on its transfer are taxed at a flat 30% with no set-off of losses, and a 1% TDS applies on transfers above thresholds. It is not legal tender in India.
Bitcoin's price is extremely volatile and it carries significant risk including total loss. This is informational only, not investment advice; treat any exposure as speculative.
Related terms
- CryptocurrencyA cryptocurrency is a digital asset that uses cryptography and a blockchain to record transactions without a central authority; in India it is a taxed VDA, not legal tender. This is informational, not advice.
- BlockchainA blockchain is a shared, append-only digital ledger where transactions are grouped into cryptographically linked blocks, making records hard to alter without consensus.
- Mining (Crypto)Crypto mining is the process by which some blockchains validate transactions and create new coins through computational work, rewarding participants who solve cryptographic puzzles. This is informational.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.