The launch | bitcoin pakistan

I will continue to blog here and post articles. I will try to move along this website teaching people how to utilize bitcoin. As such the news tidbits will now be updated at our new initiative http://pk.newsbtc.com where we will cover all bitcoin related happenings in Pakistan. Including but not limited to price analysis of major crypto currencies. We will be moving forward that direction and would like everyone to share the articles on that site so that we can move forward. I will also cover how to buy and sell bitcoin in Pakistan.

 

BitCoin! A new way to pay and get paid. | bitcoins, bitcoin, paypal, btc, xbt, nyxbt

What is Bitcoin?When people say “Bitcoin” they are referring to one of two things.

1.       A digital/crypto currency.
2.       A payment system used for sending and receiving money online.

Bitcoin as a Currency Bitcoin is a digital, decentralized, peer to peer, pseudonymous currency based on cryptography. If that sentence made no sense to you, don’t worry  – I’ll break it down for you.
·         Digital – Bitcoins exist only as code, they do not exist as anything physical. People can (and have) made physical representations of Bitcoin, but ultimately they are based in the digital world.
·         Decentralized – There is no central bank or institution that issues or controls Bitcoin. It is a group of individuals all over the world who run the program that keeps the monetary system running.
·         Peer to Peer – You control your own Bitcoin, and when you send Bitcoin to someone else, it goes directly to them. There are no banks or middlemen.
·         Pseudonymous – While all Bitcoin transactions are publicly view-able in an open ledger called the Blockchain (we’ll get to that later), the sender and receiver are only known as a string of numbers and letters. If you’re careful about your identity, using Bitcoins can be done anonymously.
·         Based on Cryptography – The strength of Bitcoin as a digital currency lies in the code, which uses strong cryptography to ensure that the coins cannot be accessed without proper permission. Bitcoin is the first digital currency that has these characteristics, and as a result it is the first digital currency to become widely adopted on the internet. As of June 2013, it is handling nearly 60,000 transactions each day, and this number is accelerating quickly.

 

Why Use Bitcoin in Pakistan:

Bitcoin is Big news for Internationale buyers and sellers. It is no secret to Bitcoin users that digital currency makes PayPal’s model of online transaction look somewhat archaic by comparison. While the method was the darling of the online community in years gone by, the rapid advance of Bitcoin in particular has caused PayPal to come increasingly under the spotlight recently.

10. Lower Fees

This is usually the first advantage of cryptocurrencies that you hear from Bitcoin enthusiasts and experts. And this is certainly true as PayPal has been notorious for imposing hefty transaction fees on users of about 3%.

9. Community Support

You can also think of Bitcoin like an app on the Bitcoin network. This means that the protocol, add-ons, and supporting infrastructure can always be further developed and improved to suit the needs of consumers and all users.

PayPal was not constructed with this in mind and has a considerably narrower potential field of operation. In other words, while PayPal can certainly afford to pay its own team of talented programmers, it still will not be able to innovate at the same rate as a decentralized network of developers spread across the entire world.

Truly Global

PayPal is not available in every country with notable exceptions being Iran, Afghanistan, North Korea, and Haiti.

Bitcoin on the other hand is the first true transnational currency because it is border-agnostic like the Internet. In other words, it can be controlled to an extent on a very local level but cannot be shut down globally unless electricity is shut off everywhere in the world.

Unlike PayPal, Bitcoin can offer citizens living under oppressive regime a way out. People using this border-less currency can circumvent state supported financial monopolies and establish their own local economies.

Less Friction



With Bitcoin, it doesn’t matter whether you send 1 cent or 1 billion’s worth, the transactions fee is the same (approx. US$0.02) or btc 0.0001. And since it’s actually your money, it is only logical that you should decide on the amount you want to send.

Decentralized

The decentralized nature of Bitcoin means that there is no single clearing house monitoring and controlling the network. This ‘trust-less’ payment system greatly increases the security of a network as there is no single point of failure such as from a DNS attack, for example.

Versatile

To use PayPal, you must be online and have a credit card. In contrast, Bitcoin can be sent offline via email or even SMS on a Nokia dumb-phone.

Privacy

While Bitcoin is not truly anonymous, it can still provide a certain level of anonymity or pseudo-anonymity for users if they know how to cover their tracks and manage their digital wallets – a process that is expected to become more user-friendly with time. Additionally when using bitcoin you can pay directly to the receiver without providing any data hence safe guarding you towards future hacks on the site that you are paying.

In contrast, this is impossible for PayPal users as they are required go through the burdensome process of filling out long forms to prove where the money came from and what it will be used for. This is particularly true for international users.

Freedom

This is the overall most important point that cannot be stressed enough. Bitcoin lowers the barriers for all to participate in global commerce.

While this may seem trivial at first, consider that almost 2.5 billion people on this planet do not have bank accounts and thus, cannot use PayPal. Bitcoin has the potential to finally bring almost half of the world that is unbanked into the global economy, which can then be truly called Global.

Indeed, with Bitcoin, a local farmer in Tanzania can receive bitcoins on his mobile phone with the nearest bank or western union location being a hundred miles away. He is also able to send payments and be an active participant in the global economy. The same holds true for Pakistan. The masses have seen the success in high cost money transmitters such as easypaisa, mobicash, ubl omni or upaisa etc. Bitcoin can be the source of a cheaper solution to all if accepted by masses.

Thus, Bitcoin enables true globalization that is inherently inclusive and egalitarian, although how this technology is implemented is ultimately up to us – the users.

With New Tax Proposition Bitcoin becomes more important in Pakistan. | Mr 0.6%, Isac Daar, Bank, tax on bank transactions, banking, bitcoin, litecoin, dogecoin, bitcoin in pakistan, pakistan, btc in pakistan, pakistan btc, bill payments, pay bills online,

With the problems and corruption in Pakistan going uncontrolled. The govt is trying to tax each and every bank transaction. There are alot of problems with current tax laws in Pakistan of which I am not going to get into much details. But bear in mind that each and every Pakistani is taxed through Cellphone home phones, electric bills, tv bills, gas bills etc. Most of this sector which is below the poverty line doesn’t even know that they are the ones that are suppose to receive a refunds. This in return causes the richer to get richer and divert taxes while the poor get poorer. With recommendations of the new tax law if implemented every banking transaction in Pakistan will be taxed hence causing more burden to existing taxpayers and causing double taxation. While this could be avoided if our systems worked properly then this wouldn’t be a problem but the returns are hardly paid and have to go through alot of problems before you actually receive the payments. This may even propel the use of Bitcoin In Pakistan.

As mentioned before btc or bitcoin is a peer to peer system that works like utorrent and hence is equivalent to digital cash. While the leading world countries are now starting to accept this crypto currency and realize its existence (now evident by the acceptance of big players such as Paypal, Microsoft, Expedia, Namescheap, Goldman Sachs and entities such as NYSE) Pakistan still remains far behind. But with the law as proposed by Mr Isaq Daar it may cause people to look for alternate ways to transact with one another in order to avoid this hefty tax. Bitcoin/btc/xbt maybe the answer here and propel people to actually start storing money in bitcoin. It is now clear that Pakistan is a growing economy in the bitcoin era as Urdubit trade volumes have reached 3 btc avg daily. Paybill which is still very new and still building has seen an increase in mobile topups. Paybill has been designed for payment of bills in Pakistan.

I do hope that this tax is not implemented, but at the same time this does show us how important a true p2p currency is. The fact that all the funds of any person in any country can be blocked or controlled by any sort of external force at will can just call shivers. I leave the readers of this blog to comment and share your thoughts on this.

Introduction of Bitcoin

Bitcoin may be a type of digital currency, created and control electronically. Nobody controls it. Bitcoins aren’t written, like bucks or euros; they’re made by many folks running computers all round the world, victimization computer code that solves mathematical issues. It’s the primary example of a growing class of cash referred to as cryptocurrency.

What are Bitcoin, and the way will it take issue to alternative kinds of Digital Cash?

Bitcoin may be accustomed get things electronically. Therein sense, it’s like typical bucks, euros, or yen, that are listed digitally.

But bitcoin’s most vital characteristic, and also the factor that creates it completely different to standard cash, is that it’s suburbanized. No single establishment controls the bitcoin network. This puts some folks relaxed, as a result of it means an outsized bank can’t management their cash.

Who created it?

A computer code developer referred to as Satoshi Nakamoto planned bitcoin, that was AN electronic payment system supported proof. The concept was to provide a currency freelance of any central authority, transferable electronically, a lot of or less instantly, with terribly low dealing fees.

But World Health Organization Prints it?

No one. This currency isn’t physically written within the shadows by a financial institution, unaccountable to the population, and creating its own rules. Those banks will merely turn out more cash to hide the debt, so devaluing the currency.

Instead, bitcoin is formed digitally, by a community of individuals that anyone may be a part of. Bitcoins are ‘mined‘, victimization computing power in an exceedingly distributed network. This network additionally processes transactions created with bitcoins, effectively creating bitcoin its own payment network.

Does that mean that you just can’t churn out Unlimited Bitcoins?

That’s right. The Bitcoin protocol – the principles that build bitcoin work – say that solely twenty one million bitcoins will ever be created by miners. However, these coins may be divided into smaller elements (the smallest separable quantity is 100 millionth of a bitcoin and is named a ‘Satoshi’, once the founding father of bitcoin).

What is it based mostly on?

Conventional currency accustomed be supported gold, or silver. in theory, you knew that if you handed over a dollar at the bank, you may get some gold back (although this didn’t really add practice). Bitcoin isn’t supported gold; it’s supported arithmetic.

Around the world, folks are victimization computer code programs that follow a mathematical formula to provide bitcoins. The mathematical formula is freely accessible, in order that anyone will check it. The computer code is additionally open supply, which means that anyone will inspect it to form certain that it will what it’s alleged to.

Is Bitcoin Legal? | Bitcoin Legal

Bitcoin is of interest to enforcement, tax authorities, and legal regulators, all of that are attempting to grasp however it fits into existing frameworks. The lawfulness of your bitcoin activities can rely upon United Nations agency you’re and what you’re doing with it.
Bitcoin has established to be a contentious issue for regulators and law enforcers, each of that have targeted the virtual currency in a shot to manage its use. we have a tendency to ar still timely within the game, and plenty of legal authorities ar still troubled to grasp the cryptocurrency, in addition to create laws around it. Amid all this uncertainty, one question stands out: is bitcoin legal?
The answer is affirmative, reckoning on what you’re doing with it. browse on for our guide to the advanced legal landscape close bitcoin. Most of the discussion issues the US, wherever several of the legal dramas ar presently enjoying out.
What ar the issues concerning Bitcoin?
Government agencies ar more and more disquieted concerning the implications of bitcoin, because it has the power to be used anonymously, and is so a possible instrument for concealment. specially, law enforcers appear to be troubled concerning the localized nature of the currency.
As early as April 2012, the Federal Bureau of Investigation printed document lightness its fears around bitcoin specifically, drawing a distinction between it and centralized digital currencies like eGold and WebMoney. It voiced issues that whereas US-based exchanges ar regulated, offshore services might not be, and will be a haven for criminals to use bitcoin for illicit activities while not being derived.
Bitcoin was the sole type of currency accepted on trade route, AN anonymous marketplace that was solely accessible over the TOR anonymous browsing network, and that was closed by the Federal Bureau of Investigation in Oct 2013. Trade route was unremarkably accustomed sell product that ar legal in several countries, as well as narcotics. This prompted US legislator Charles Schumer to involve the location to be stop working, expressly linking it to bitcoin, that he known as a “surrogate currency”. The US Drug social control Administration appropriated bitcoins from a US resident for buying a drug in Gregorian calendar month 2013.
Who regulates it?
Regulators can vary on a per-country basis, however you’ll be able to expect to check national money regulators fascinated by bitcoin and alternative virtual currencies, doubtless in conjunction with regional regulators at a sub-country level.
FinCEN
In the US, the money Crimes social control Network (FinCEN), that is workplace inside the US executive department, took the initiative. It printed pointers concerning the employment of virtual currencies. FinCEN’s March eighteen, 2013 steerage outlined the circumstances below that virtual currency users may well be classified as cash services businesses (also unremarkably called cash sending business or MTBs). MTBs should enforce Anti-Money washing (AML) and grasp Your shopper (KYC) measures, characteristic the those that they’re doing business with.
CFTC
The US artefact Futures mercantilism Commission (CTFC), that takes care of money derivatives, hasn’t declared regulation nonetheless, however has created it clear that it may if it needed to.
SEC
The US Securities and Exchange Commission (SEC) hasn’t issued solid laws on virtual currencies, however its workplace of capitalist Education ANd support printed an capitalist aware of warn folks concerning fallacious investment schemes involving bitcoin. specially, it warned of Ponzi schemes, once charging Lone-Star State resident Trendon T Shavers, aka ‘pirateat40’, founder and operator of Bitcoin Savings and Trust, with allegedly raising 700,000 bitcoins by promising investors up to seven-membered weekly interest.
Legislative Branch
The SEC case has forced the branch of state to think about bitcoin’s status. Shavers had claimed that he couldn’t be prosecuted for securities fraud, as bitcoin wasn’t cash. However, choose Amos Mazzant issued a note difference of opinion that bitcoin is used as cash.

In August 2013, the Senate wrote to many enforcement agencies, inquiring concerning the threats and risks regarding virtual currency. The letters enclosed this one to the Department Of Homeland Security, fretting concerning the dearth of a written record for regulators and social control agencies to follow for virtual currency transactions. It requested policies and steerage associated with the treatment of virtual currencies, and knowledge concerning any in progress strategic efforts within the space.

November saw responses from the assorted agencies. The Department of Homeland Security was the foremost disquieted concerning the criminal threat from illicit use of bitcoin, whereas the Department of Justice, the Fed and therefore the Department of Justice all acknowledged the legitimate uses of virtual currencies. The SEC argued that “any interests issued by entities owning virtual currencies or providing returns supported assets like virtual currencies” were thought-about securities and so fell below its remit.

US States

Each US state has their own money regulators and laws, and every approaches bitcoin otherwise. American state and ny are notably aggressive in their pursuit of bitcoin-related organizations, for instance, whereas others, like American state, South geographical region, and MT, don’t regulate cash sending businesses. there’s a listing of state approaches to cash transmitter laws here.

In could 2013, California’s state money regulator issued a letter to the Bitcoin Foundation, a noncommercial organization designed to push bitcoin, warning it that it should be a cash transmission business, and threatening folks there with potential fines and jail time.

Then, in August 2013, the ny Department of monetary Services issued subpoenas to twenty two bitcoin-related corporations, though these letters were a lot of conciliatory, inquiring for a dialogue to develop applicable regulative pointers for the digital currency trade. Since then, ny has planned issuance “BitLicenses” – licenses for bitcoin-based businesses – and can be holding hearings on the topic.

Private Sector corporations (Banks)

Several banks have stopped accounts owned by folks operational bitcoin exchanges. In a minimum of one case, this was as a result of the bank was sad that the corporate concerned failed to have a cash sending business (MTB) account.

The Senate self-addressed the difficulty of banking and federal regulation in an exceedingly set of hearings, command in Nov. The hearings were alpha in nature and should not result in legislation, however feedback from agencies enclosed acknowledgements that there have been legitimate uses for the coin.

What this suggests to You

The lawfulness of bitcoin depends on United Nations agency you’re, and what you’re doing with it. There ar 3 main classes of bitcoin neutral. somebody could represent quite one in all these classes, and every class has its own legal issues.

Users

These ar people that get bitcoins, and either hoard them or pay them. below the law enforcement agency steerage, users United Nations agency merely exchange bitcoins for product and services ar victimization it lawfully.

FinCEN: “A person who creates units of this convertible virtual currency and uses it to get real or virtual product and services could be a user of the convertible virtual currency and not subject to regulation as a cash transmitter.”

Miners

According to the law enforcement agency steerage, folks making bitcoins and exchanging them for edict currency don’t seem to be safe.

FinCEN: “By distinction, an individual that makes units of convertible virtual currency and sells those units to a different person for real currency or its equivalent is engaged in transmission to a different location and could be a cash transmitter.”

Miners appear to constitute this class, that may in theory create them chargeable for MTB classification. this can be a bone of rivalry for bitcoin miners, United Nations agency have asked for clarification. This issue has to not our data been tested in court.

Exchanges

Exchanges ar outlined as MTBs.

FinCEN: “In addition, an individual is AN money dealer and a cash transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to a different person as a part of the acceptance and transfer of currency, funds, or alternative worth that substitutes for currency.”

Taxation

In 2009, the US tax revenue Service (IRS) denote data concerning the tax applications of victimization virtual currencies within virtual economies, difference of opinion that taxpayers will receive financial gain from a virtual economy and will be needed to report it as nonexempt financial gain. However, it primarily based this mostly on steerage associated with bartering, gambling, business, and hobby financial gain.

However, the Internal Revenue Service has not nonetheless denote steerage on ‘open flow’ virtual currencies that may be used outside of virtual economies. in an exceedingly 27-page report [PDF] printed in could 2013, the US General Accounting workplace (GAO) involved a lot of steerage from the Internal Revenue Service on this issue.

The Internal Revenue Service responded that its steerage may currently be taken to hide virtual currencies as used outside of virtual economies. It added that it absolutely was conjointly observing the potential tax compliance risks display by anonymous electronic payment systems, and was operating with alternative federal agencies on the subject.

In Gregorian calendar month 2013, the director of AN Internal Revenue Service unit that investigates cyber threats conjointly told the money Times that the employment of “cyber-based currency and payment systems” to cover unreported financial gain from the Internal Revenue Service could be a threat that it absolutely was “vigorously responding to”. And at Senate hearings in Nov, law enforcement agency director Jennifer Shasky Calvery confirmed that the Internal Revenue Service would be emotional a lot of steerage on virtual currencies. In short, don’t expect to evade taxes by earning bitcoins rather than edict currency.
What is the trade Doing?

The trade has well-versed growing regulator issues in many ways that.

– many corporations created a committee to create a self-regulatory body known as knowledge, designed to encourage open oral communication with regulators.
– The Bitcoin Foundation shaped committees to supply legal steerage, steer policy, and talk terms with regulators.
– Exchanges are making an attempt to secure MTB licenses at the state and federal levels, and a few have avoided doing business with US customers till this can be resolved.

Other Countries

While no government has declared any express intention to forestall bitcoin use fully, round the finish of 2013 and begin of 2014 there have been a series of warnings and directives from central banks and regulators to varied degrees of severity. they vary from the straightforward “be careful, bitcoin is neither regulated nor formally a currency,” to blocks on money establishments and even raids on bitcoin businesses. several claim to be disquieted concerning the result that large-scale bitcoin adoption may need on the steadiness of the financial set-up, particularly if costs ar volatile.

Europe

European Union

The EU’s banking regulator, the ecu Banking Authority (EBA), issued a warning statement on thirteenth Dec 2013 warning of investment risk, however focusing principally on problems with fraud, nonpayment and alternative crime connected to ‘virtual’ currency use. The statement conjointly warned that if news of misuse continuing to emerge, it “could lead enforcement agencies to shut exchange platforms at short notice and stop customers from accessing or retrieving any funds that the platforms could also be holding for them.”

United Kingdom

Meetings with policymakers within the United Kingdom in Sept steered that bitcoin-based businesses wouldn’t ought to register with regulators, a minimum of for the present, whereas they think about their regulative position. the foremost recent message from the united kingdom suggests that bitcoins won’t be treated as cash, however can instead be classified as single-purpose vouchers, that may carry a VAT (sales tax) liability on any bitcoins that ar sold .

Germany

Germany is maybe the foremost advanced country once it involves control bitcoin and virtual currencies. though some problems stay unresolved, the German government has exempted bitcoin transactions command for over one year from twenty fifth capital gains tax. It conjointly classified bitcoin as a type of personal cash. In early Jan 2014 the Bundesbank recurrent a warning that bitcoin was “not an alternate to national currencies,” and values were “highly speculative.”

Belgium

The full service bank of Belgique has no intention of intervening in bitcoin business or control it, says the Belgique Bitcoin Association. On sixteenth Jan 2014, however, the financial organisation issued a joint warning with the Belgian money Services and Markets Authority (FSMA) that digital currencies don’t seem to be issued by any central authority, and intrinsically ar in danger of volatility, fraud, and business non-acceptance.

France

The French Senate command hearings into bitcoin and digital currencies in mid-January 2014 that were thought-about principally investigative and positive in tone. the main focus was principally on the opportunities given by the new technology and the way existing laws and organizations may well be accustomed catch wrongdoers. creating bitcoin ill-gotten wasn’t AN choice, in keeping with observers, and France required to catch up to neighboring countries in its approach.

Finland

Finland issued a regulative guide to bitcoin in Sept 2013, that obligatory capital gains tax on bitcoins, and taxes bitcoins made by mining as attained financial gain.

Sweden

Sweden’s Finansinspektionen money regulator currently considers bitcoin as a method of payment, following steerage issued last year. Exchanges should register with it and meet the wants two-faced by alternative money establishments.

Slovenia

Slovenia is one in all the a lot of permissive governments towards digital currency use, although regulators there issued a press release on twenty fourth Dec 2013 to cue those that bitcoin is taken into account neither a currency nor a money instrument. The country’s Tax Administration and Ministry of Finance conjointly aforesaid that bitcoin is subject to taxation like all alternative non-monetary financial gain, and would be calculated supported the bitcoin-Euro charge per unit at the time of dealing. marketing bitcoin wouldn’t be subjected to capital gains tax.

Asia and geographical region

Thailand

In Gregorian calendar month 2013, reports steered that Siam had prohibited bitcoin. In fact, as some steered, a number of the exchanges were still mercantilism, and therefore the Bank of Siam, that was the entity that was purported to have prohibited bitcoin, doesn’t have the power to try and do thus. As of August 2013, the Bank of Siam was merely considering whether or not to grant the exchange in question a license.

“Because they need not been granted a license this doesn’t mechanically mean that a private in Siam marketing or shopping for bitcoins with a bitcoin exchange in another country, e.g. Mt. Gox, is breaking the law,” aforesaid Bank of Siam Governor Prasarn Trairatvoraku.

China: People’s Republic of China

China’s authorities have had arguably the most important impact on bitcoin adoption and values within the past few months. In early Dec 2013, the People’s Bank of China (PBoC) issued a press release warning of bitcoin risks and forbiddance money establishments from partaking in bitcoin business themselves or transferring funds to/from bitcoin exchanges. Another statement simply days later conjointly blocked third-party payment processors from handling exchanges, and therefore the worth of bitcoin worldwide crashed from its record high of over $1200 by concerning five hundredth. The moves have had a dramatic result on the market share of enormous bitcoin exchanges within the country.

In mid-January A PBoC official claimed there’s no move to suppress or discriminate against bitcoin in China, and exchanges are allowed to stay open for business. There will appear to be a political candidate campaign to limit bitcoin trade to the fringes, however, and China’s state-owned business television channel broadcast a documentary identical week jam-packed with dire warnings concerning risks to investors from worth volatility.

China: city

Hong Kong’s Secretary for money Services and therefore the Treasury issued a warning concerning risks related to bitcoin on ninth Jan. The Special body Region (SAR) of China and money hub has remained otherwise inactive in its approach to bitcoin, spoken language it doesn’t cause a risk to the financial set-up if it’s not wide adopted.

China: Republic of China (Taiwan)

The money superordinate Commission of the Republic of China and therefore the financial organisation of the mythical creature issued a joint statement at the terribly starting of 2014 warning against bitcoin use in Taiwan. Regulators there have conjointly aforesaid they’ll block any decide to install Robocoin bitcoin ATMs.

Singapore

Singapore is another major international money services hub and seems to be one in all the world’s most permissive environments for bitcoin. The financial Authority of Singapore has expressed it “will not interfere” with bitcoin business, despite AN earlier warning in Sept 2013 of the risks. In mid-January 2014 Singapore’s taxation authority, the IR Authority of Singapore (IRAS) sent a press release to native brokerage Coin Republic with details on however bitcoin business would be taxed.

Bitcoin are going to be treated not as a currency however as either a decent or quality, said IRAS. As a decent it’d be subject to GST (VAT or excise tax) once listed to and from native currency by Singapore-resident businesses and product purchased with bitcoin would even be subject to sales tax. As AN investment quality, bitcoin wouldn’t be taxed as Singapore doesn’t have a capital gains tax.

Malaysia

Malaysia’s financial organisation, Bank Negara Malaya (BNM), issued one in all the shortest statements of its kind on fourth Jan, cautioning folks to use caution once finance in bitcoin however otherwise spoken language merely “The financial organisation doesn’t regulate the operations of bitcoin.”
Indonesia
Indonesia’s financial organisation, Bank Dutch East Indies, issued a warning on sixteenth Jan 2014 that bitcoin wasn’t thought to be a currency and acceptive it as payment may even break national currency laws. No future action against exchange businesses has been taken up to now, however.
India
India’s financial organisation is claimed to be “watching” bitcoin. in an exceedingly series of dramatic moves, the depository financial institution of Bharat (RBI) issued a warning concerning bitcoin in late Dec 2013 that was followed quickly by exchanges selecting to suspend operations. One exchange had its premises raided and another was paid a “friendly” visit by tax officers to analyze however digital currencies may well be managed and taxed. Some exchanges have since re-opened for business.
Israel
The Israeli Tax Authority is claimed to be considering a tax on bitcoin, however no statements are created at the time of writing. However, the Israel Bar Association considers the virtual currency AN applicable type of payment for attorneys.
Lebanon
Lebanon’s financial organisation, the Bank of Asian country, issued a warning statement on 2d Jan 2014 spoken language that bitcoin failed to supply client protections, had a volatile worth and was typically employed in criminal transactions. It suggested folks to not use digital currencies.
North America (Non-US)
Canada
Canada has declared that it’ll tax bitcoins in 2 ways that. Transactions created for product or services are going to be treated below its barter dealing rules, whereas its Transactions in Securities document says that profits created on artefact transactions may well be financial gain or capital. It confirmed these rules in Nov 2013.
Oceania
Australia and New island
Both the Governor and Assistant Governor at the depository financial institution of recent island (RBNZ) issued personal warnings in time period 2013, warning of risks related to volatility, however conjointly commenting that the technology was “interesting”. within the same week, the Governor of the depository financial institution of Australia created similar comments in an exceedingly newspaper interview and warned of “speculative excesses”. Neither country has created any moves to dam or otherwise regulate bitcoin businesses, and each home to variety of smaller exchanges.

What to expect

 

What to expect:
I plan to set this up as more of a help and tutorial to those new to bitcoin, litcoin, darkcoin. The posts to follow will be helpful for new miners on how to mine with cpu, gpu(graphic cards or video cards, amd based ones), asics and cloud mining. While I dont recommend mining with them but the idea is to teach people how to get started. Dont think of this as a get rich quick scheme. Mining takes a bit of effort, very powerfull hardware and some common sense. The idea here is to teach people what to expect.

 

Brief History:
Bitcoin as described by its maker (Satoshi Nakamoto) is a payment system based on open source standards that was presented to the world in 2008. Who is Satoshi Nakamoto no one knows there are many ideas who he might be but no one knows for sure who he/she is. Think of bitcoin as a torrent where bitcoin works peer to peer only. Meaning it can be transferred from me to third-party without any administrator with close to very little or no fees. To make this transaction possible different users have mining hardware running. This hardware can be in the form of a cpu, gpu, asic and cloudmining, heck there is even paper mining which you can do yourself it wont earn you anything but you will learn something(Will get into more details on each in later details). At this point I would like to inform you that there are only 21million bitcoins that can be mined from which about 61% have already been mined. At this point you can hop over to Bitcoin Wisdom to check out what current rates are for 1 bitcoin converted to usd. The idea presented by satoshi was to have a decentralized currency which can be termed as “Money without Boarders”. Today Paypal(For US Only), Dell, Expedia, Overstock are the big giants who have started accepting bitcoin, btc or xbt(xbt is being used by bloomberg as tracker on commodities market to give rates of bitcoin) other then these there are numerous other smaller companies accepting bitcoins. All mining hardware manufactures accept bitcoin, litecoin for payments. Bitcoin now works on a blockchain which is basically a public ledger of all transactions. The idea was to keep everything anonymous so a wallet and sha256 encryption was introduced. Hence when ever you talk about btc, xbtc and its mining it will be refereed to  as sha or sha256 hashing.

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The Wallet:
The wallet is basically where you store coins. Do remember if this wallet is stolen you have lost all your bitcoins permanently. Some people like online wallets some people like offline ones some like cold storage wallets which can be printed or engraved onto paper metal silver gold etc. You can pretty much google for different types of wallets for bitcoin and you will find alot. The best online and most trusted one is at blockchain. There are many android wallet available, you can just search blockchain or if you prefer another wallet search for bitcoin or bitcoin wallet on Google Play Store.

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How to Get bitcoins:
There are many websites that explain this. You can trade bitcoin for fiat(other printed currencies) through online exchanges such as Cryptsy or bittrex or btc-e just to name a few. Most of these sites support wiring money but if you prefer to use credit card which is an untrusted method since there can be chargebacks you can pay a little extra and use this blog to buy through credit card.

Other Sites to buy bitcoin from webbased atms:

Coinsafe
Bitcoinpk

 

Other interesting Coins:
The idea of bitcoins was really appreciated and it really took off around 2009 and 2013 respectively. There were many others who presented other ideas on coins which brought value. Coins like namecoin or nmc (a blockchain based domain of .bit and is not governed by any authority so you can host anything you want without any restrictions), primecoin or xpm(which uses its hashing power to produce prime numbers), korecoin, kore(a more recent coin with anonymous voip calling and later cheaper then skype calls), litcoin or ltc(A copy of bitcoin based on scrypt algorithm much faster transactions then btc, xbt ) and also darkcoin or drk (a truly untraceable coin also relatively new) based on x11 algorithm. Please take note there are about 400+ plus different types of coins some very unique some even arent open source I cant get into them all but these are the coins I personally like and therefore I have mentioned them here.

 

Going Forward:
This technology is still very immature at best there are things happening as we speak. Bloomberg has started carrying the symbol XBT to denote btc. Its being listed as a commodity in the US market. And should hit NASDAQ after December 2014. More and more companies as mentioned above in the brief history are starting to accept it. There are some negatives too like the Mt-Gox scandal, then a few hack attempts where people compromised pcs to mine for them. Bangladesh ban. Russian considering a Ban are at the center of btc and lets see where it takes us. but I for one believe that it is here to stay and it will be hard to ban people who you cant track and are dealing in this. My next post will get you started with mining we will proceed with cpu mining, followed by gpu, asic and round it up with cloud mining.