BENGALURU: When 32-year-old Harshad Gawde first invested in bitcoins in 2013, he couldn't have expected the returns from it to sponsor an all-India tour, beginning with a six-month trip through Roopkund hills in Uttarakhand. He will be living off $15 daily payouts from that investment.
"I invested in bitcoin when one coin was worth Rs 28,000, one-tenth of what it is today," the Mumbai-based Gawde said. On August 30, one bitcoin was worth Rs 2,91,822—its value skyrocketing since Donald Trump's election as the US president in November and spawning an industry of auxiliary services for people rushing in to find gold in the virtual currency.
Bitcoin is a decentralised, paperless cryptocurrency invented by Satoshi Nakamoto, an alias for an anonymous programmer in 2009.
Unlike traditional currencies, crypto coins are not produced by a central authority like a bank or a consortium. It is a mathematical formula. These coins are produced by massively souped-up computers, called 'mining rigs', that solve complex math problems to obtain these virtual currencies. A ledger records all the transactions.
Bitcoins saw explosive growth in India after Prime Minister Narendra Modi recalled high-denomination banknotes in November. Indian bitcoin exchanges have received a lot of traction in the past few months with more than 1 million active crypto-currency users.
"We recently crossed 100,000 active users on our platform, and are adding 10,000-20,000 users a month," said Hesham Rehman, chief executive of bitcoin exchange Bitxoxo.