Cryptocurrencies have been in flavor ever since the subprime crisis led to the collapse of financial systems and led the economies into a brief recession. Bitcoin has been quite prominent amongst different cryptocurrencies. The recent craze in demand also led to an upsurge in the Bitcoin prices that almost touched $60,000. However, as a citizen of India, you must know that trading cryptocurrencies were banned for quite some time.
The Reserve Bank of India (RBI) issued a circular in 2018 declaring that anyone who actively trades in cryptocurrencies should not be allowed to use banking services. This year, the Supreme Court of India rejected the Reserve Bank of India’s circular, ruling that the ban had no legal basis and that the RBI had no authority to impose trade restrictions on these currencies. In brief, the cryptocurrency trading restriction has been lifted. Let’s look at some of the different ways to mine bitcoin in India.
What is Bitcoin?
- What is Bitcoin?
- How To Trade Bitcoin in India?
- How to Mine Bitcoin in India?
- Types of Bitcoin Mining in India
- Final Note – Mine Bitcoin in India
- Frequently Asked Questions
After the collapse of the financial system in 2008 during the subprime mortgage crisis. By then many people had already lost faith in the centralized system that controlled the financial system. This is the time when Satoshi Nakamoto created Bitcoin, a digital currency that was backed by blockchain technology. But what makes Bitcoin attractive is the fact that it is decentralized with no regulatory authority governing it and also has lower transaction fees compared to the traditional banking system.
How To Trade Bitcoin in India?
There were few crypto facilities in India that could be utilized to trade Bitcoin. But, with the latest technical advancements, investing in or trading in Bitcoin has gotten more simpler. A cryptocurrency exchange is the most convenient way to trade Bitcoin. In India, there are approximately six crypto exchanges:
- CoinSwitch Kuber
You can register with any of the crypto exchanges listed above if you are new to crypto trading or investing in digital assets. Following your KYC certification, you will be given a wallet into which you can deposit funds and begin trading Bitcoin or other digital currencies.
Recommended: How Can Bitcoin Help You Make Money?
How to Mine Bitcoin in India?
Bitcoin miners are recognized for competing with one another by solving a matrix of difficult mathematical equations with high-performance computers while extracting the cash. Every miner receives a monetary reward for continuing to mine and producing cryptocurrency. However, the incentive for mining one Bitcoin has dropped dramatically in recent years, to 6.25 BTC. Yet, because Bitcoin values have lately risen, owning even a single Bitcoin can be quite profitable.
If you want to start mining the cryptocurrency in India, you must follow these steps to ensure that you can be profitable at the business:
- Setup Is Difficult To begin the mining process, you must first set up a machine with a fast processor to assist you in solving the equations quickly. GPUs, also known as application-specific integrated circuits (ASICs), are quicker than standard CPUs, allowing you to solve issues more quickly.
- Wallet Configuration After you’ve configured your workstation, you’ll need to create a crypto wallet to store your data and token rewards. This will allow you to keep track of your token profits, and setting up a wallet is rather simple.
- Pool of Mining You can join a mining pool after you’ve finished your overall setup. This will assist you in solving complex equations as a group, and you will be able to split the rewards. When you work as a team, the mining process is faster and easier.
Recommended: Places to Mine Bitcoin for Free
Types of Bitcoin Mining in India
There are many different types of Bitcoin mining devices available. According on the type, you can access different software and, as a result, mine different coins. Several mining hardware options allow you to mine independently or via the cloud.
1. CPU Mining
Previously, Bitcoin could be mined using CPUs because they used less hash power. But, as the coin’s fame and circulation grew, the difficulty of mining it increased, and it is currently nearly impossible to obtain a Bitcoin using a CPU. Nonetheless, CPU mining can be a fantastic way to mine some new and lesser-known coins, and their value is likely to rise in the future, providing you with good returns on your investment.
2. GPU Mining
Due to the high computational capability, it is a faster method of mining Bitcoins. GPU stands for Graphics Processing Unit and is used to describe high-end graphics cards. For rendering and playback of high-end video games, they are usually utilized in tandem. In India, they also do a decent job mining Bitcoins. However, it all depends on the GPU’s net capability.
3. ASIC Mining
Because the ASIC (Application-Specific Integrated Circuit) is a machine designed expressly for mining, it is the most efficient of the options. ASIC Miners may be able to mine one or more compatible coins, so make sure to check if the miner can mine the ones you desire. While ASIC Miners are faster than other machines, they also use less energy.
4. Cloud Mining
This is the best solution to go with if you do not want to invest time in a physical setup for mining. The computers are typically placed in locations and you can rent their computational power for mining. The hardware runs on the host, and therefore, you do not need any device placed in your space in India. At the time of writing, Bitcoin Mining in India is typically done through cloud mining by making use of computational power in computers placed in western countries.
Recommended: In 2030, how much will Bitcoin be worth?
Final Note – Mine Bitcoin in India
Mining Bitcoin is a difficult and expensive procedure, but it is very profitable. Being a devoted miner can be difficult, but with the latest crypto craze, mining Bitcoin is now easier than ever. To begin mining, you must first purchase the necessary equipment, create a wallet, and join the community of miners.
Frequently Asked Questions
Can I legally mine Bitcoin in India?
Following the Supreme Court’s decision, Bitcoin is now a legal form of currency that can be traded and mined in India.
Can you mine one bitcoin at a time?
However, instead of a single token for which you will be paid 6.25 BTC, you will be mining an complete block of Bitcoin.
What is the approximate duration taken to mine one block of Bitcoin?
The Bitcoin miners network takes about 10 minutes to mine one block of Bitcoin.
Is it possible to mine Bitcoin on my phone?
Although mining Bitcoin on your phone is conceivable, it is not the same as traditional mining, which can simplify the process and make it easier to solve equations.
Is there any easy way to mine Bitcoins?
Cloud mining is a simplified version of Bitcoin mining. You can purchase the necessary equipment without incurring additional setup costs.