The concept of Bitcoin, and its underlying blockchain technology, was laid out in a white paper published in October 2008 by Satoshi Nakamoto, whose true identity is not known. In the white paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, he envisioned the use of Bitcoin as a peer-to-peer network to allow online payments to be sent from one party to another without relying on a financial institution. The first-ever Bitcoin transaction took place on January 9, 2009, between Nakamoto and software developer Hal Finney.

Bitcoin attracted attention to its underlying technology - the blockchain - which may be used to revolutionise the way companies handle payments or transfer information. A blockchain is a database that is shared across a network of computers. Once a record has been added to the chain, it is very difficult to change. To ensure all the copies of the database are the same, the network makes constant checks. Blockchains have been used to underpin cybercurrencies like Bitcoin, but many other possible uses are emerging. Advocates of the technology say this makes Bitcoin transactions secure and safer than current systems.

The first real-world Bitcoin transaction was made in May 2010 by programmer Laszlo Hanyecz. He spent 10,000 Bitcoin on two Papa John’s pizzas. Had he kept the currency, it would have been worth more than $38 million by now, say experts. The value of Bitcoin surged by more than 1,000 per cent, sometimes gaining $2,500 in a single day, to stand at almost $20,000 just before Christmas 2017. Later, it had a sharp decline.

Bitcoin can be used anonymously to conduct transactions between any account holders, anywhere and anytime across the globe, which makes it attractive for criminals and terror outfits. Most countries have not clearly determined the legality of Bitcoin. The US, Germany, Japan, Australia and Argentina are some of the countries that have showed positive signs towards Bitcoin. Prague is ranked first in the top 10 cities enabling payments using Bitcoin, as published in the global list of Forbes magazine.

Bitcoin is not regulated in the country and its circulation has been a cause for concern. The RBI has cautioned users, holders and traders of virtual currencies, including Bitcoin. The government has also said that it does not recognise cryptocurrency as legal tender in India. Finance Minister Arun Jaitley said in Parliament that those indulging in such transactions are doing it at their own risk. “The government is examining the matter. A committee under the chairmanship of secretary, Department of Economic Affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken,” he said. While a repeated message was being given that such currencies were not legal tender, more detailed steps would be taken once the report is submitted, he added. India is also home to a sizeable number of investors in Altcoins such as Ethereum, Ripple, Litecoin, Monero, Dash, Zcash, etc.

Over the past one year, installation of Bitcoin ATMs is on the rise across the world. According to data from website Coin ATM radar, the total number of crypto ATMs across the world stands at 4,155. There are 75 countries in the world that house a crypto ATM. The most installations are in the US (2,492), followed by Canada (702), while Austria (267) is in third place. Bitcoin has also helped in creating awareness on blockchain technology, which may be used to revolutionise the way companies handle payments or transfer information. During its 10th anniversary, predictions on Bitcoin’s future are modest. Cybersecurity pioneer John McAfee predicted it would reach $500,000 by the end of 2020. However, some economists say it will be wiped out entirely.