At 1.32 billion, India’s population may have
already taken over China’s – making it the
most populous country in the world.
According to a study by
PricewaterhouseCoopers’, at least a
whopping 233 million Indians still don’t
have bank accounts.
Although due to demonetization (a
government’s move that got rid of 86%
currency notes in circulation) and under
Prime Minister’s Jan-dhan Yojna (an
initiative to open bank accounts for every
Indian household), a lot of people have
managed to get their bank accounts, but
that number is far from 200 million mark.
Ironically, India has one of the largest
remittance markets in the world with a
total value of close to $70 billion. On every
transaction, an average user pays up to 15%
in bank charges and conversion fees.
Bitcoin provides a solution to India’s
underlying problems. The digital currency
can be used to move money inexpensively
across borders within a matter of minutes
without ever having a bank account. It’s
important to note that lately bitcoin
adoption is taking over its network
capacity, leading to delay in transactions
and very high fees (more on this later).
How does it work?
Every transaction on the bitcoin network is
recorded on a public ledger called
blockchain . Each blockchain has three parts;
its identifying address (of approximately 34
characters), the history of who has bought
and sold it (the ledger) and the private key
header log – where a sophisticated digital
signature is captured to confirm every
transaction for that particular Bitcoin file.
All the trades that happen on the bitcoin
network are publicly disclosed, with each
participant’s digital signature attached to
the Bitcoin blockchain as a confirmation.
What this means is that bitcoin transactions
are not completely anonymous. People can
see history of your bitcoin wallet, which is
great for transparency and security. It also
helps deter people from using bitcoins for
With each new ledger update, some new
bitcoins are minted. The number of bitcoins
created in each update are halved every 4
years. This will go on till 2140 when this
number will round down to zero. At that
time no more bitcoins will be added into
circulation and the total number of bitcoins
will have reached a maximum of 21 million.