Bitcoin, often hailed as the pioneer of digital currencies, has captivated the global financial landscape since its inception. As of 1st May 2020, Bitcoin in India remains a topic of intense interest, blending curiosity with caution among investors and tech enthusiasts alike. But what exactly is Bitcoin? At its core, it is a decentralised digital currency and asset, designed to operate without the oversight of central banks or governments. Unlike traditional fiat currencies such as the Indian Rupee (INR), which are controlled by the Reserve Bank of India (RBI), Bitcoin's value is determined by market forces—supply, demand, and user adoption.
In this comprehensive guide, we delve into everything you need to know about Bitcoin in India. From its origins and legality to practical advice on how to buy Bitcoin in India, how to invest in Bitcoin in India, and the current price of Bitcoin in India, we aim to provide a neutral, fact-based overview. Whether you're wondering about the price of 1 Bitcoin in India today or the tax implications of cryptocurrency in India, this article equips you with the knowledge to navigate this evolving space responsibly. With Bitcoin's price fluctuations making headlines, understanding its role in the Indian economy is more relevant than ever.
Bitcoin's appeal lies in its promise of financial sovereignty. In a world where traditional banking systems can falter—as seen in the 2008 global financial crisis—Bitcoin offers an alternative. Created under the pseudonym Satoshi Nakamoto, its whitepaper was released in October 2008, and the network went live in January 2009. By May 2020, Bitcoin had matured into a multi-billion-dollar asset class, with institutional interest growing worldwide. In India, despite regulatory uncertainties, trading volumes on local exchanges have surged, reflecting a burgeoning interest in cryptocurrency in India.
The Origins and Purpose of Bitcoin
To grasp Bitcoin's significance, especially in the context of Bitcoin in India, one must trace its roots. Satoshi Nakamoto's vision was born from the ashes of the 2008 financial meltdown. Major banks, through risky lending and speculative practices, triggered a cascade of failures that wiped out trillions in value. Governments bailed out these institutions using taxpayer money, leaving ordinary people to bear the brunt. This centralised vulnerability prompted Nakamoto to propose a peer-to-peer electronic cash system, free from intermediaries.
The Bitcoin protocol solves the "double-spending" problem inherent in digital money through a distributed ledger called the blockchain. This technology records every transaction in a tamper-proof manner, secured by cryptography and consensus among network participants. Miners—computers solving complex mathematical puzzles—validate transactions and add them to the chain, earning new Bitcoins as rewards. This process, known as mining, ensures decentralisation: no single entity controls the network.
In India, where remittances from abroad exceed $80 billion annually (as per World Bank data for 2019), Bitcoin's borderless nature is particularly appealing. Traditional transfers via banks or services like Western Union incur hefty fees—often 5-7%—and delays of days. Bitcoin transactions, by contrast, settle in minutes with fees under 1%, making it a viable option for cross-border payments. However, as we'll explore, challenges like volatility temper this potential.
By May 2020, Bitcoin's total supply is capped at 21 million coins, with over 18 million already mined. This scarcity mimics gold's appeal, positioning Bitcoin as "digital gold." Its halving events—every four years, mining rewards halve—further enhance this deflationary model. The most recent halving in May 2020 reduced rewards from 12.5 to 6.25 BTC per block, often correlating with price surges due to reduced supply growth.
Is Bitcoin Legal in India? Navigating the Regulatory Landscape
A burning question for many is: Is Bitcoin legal in India? As of 1st May 2020, the answer is a qualified yes. Bitcoin is not banned, but it is not recognised as legal tender either. In his 2018 Union Budget speech, then-Finance Minister Arun Jaitley clarified that cryptocurrencies like Bitcoin cannot substitute the INR for payments. This means you cannot use Bitcoin to buy groceries at a local kirana store or settle utility bills directly.
However, trading, buying, and holding Bitcoin in India is permissible. The RBI lifted its February 2018 banking ban on crypto exchanges in March 2020, following a Supreme Court ruling that deemed it unconstitutional. This reversal sparked a resurgence in activity, with platforms like WazirX and CoinDCX reporting doubled user bases. The government views cryptocurrencies as assets, subject to capital gains tax—short-term (up to 36 months) at slab rates, and long-term thereafter at 20% with indexation.
Yet, regulatory clarity remains elusive. A proposed cryptocurrency bill, anticipated by year-end 2020, aims to establish a framework, potentially including licensing for exchanges and anti-money laundering (AML) measures. Until then, users must comply with Know Your Customer (KYC) norms on platforms. Internationally, contrasts abound: Japan recognises Bitcoin as legal tender since 2017, allowing payments at select retailers; Germany treats holdings over €600 as tax-free after a year; and the US regulates it via the SEC as a commodity. China, conversely, banned exchanges in 2017 but permits mining.
In India, the debate around a Bitcoin in India ban or not has cooled post the Supreme Court verdict. No outright ban exists, but caution is advised. The Enforcement Directorate has probed suspicious transactions, underscoring the need for legitimate use. For those pondering "Bitcoin in India ban," rest assured: as of May 2020, it's tradeable, but stay updated via official RBI notifications.
How to Buy Bitcoin in India: A Step-by-Step Guide
Wondering how to buy Bitcoin in India? The process is straightforward, thanks to user-friendly cryptocurrency in India exchanges. Start by selecting a reputable platform. Popular options include CoinDCX, WazirX (now under Binance), and ZebPay—each offering INR deposits via UPI, bank transfers, or cards.
Here's a simple guide on how to buy a Bitcoin in India:
- Choose an Exchange: Opt for one with strong security, like two-factor authentication (2FA) and cold storage for funds. For instance, the best app to buy Bitcoin in India might be WazirX, boasting over 2 million users by May 2020.
- Sign Up and Verify: Download the app for Bitcoin in India (available on Google Play or App Store). Complete KYC with PAN, Aadhaar, and bank details—mandatory under Indian regulations.
- Deposit Funds: Link your bank account and transfer INR. Minimums start at ₹100, answering "Can I buy Bitcoin in India for 1000 rupees?" with a yes.
- Purchase Bitcoin: Search for BTC/INR pair. Use market orders for instant buys at the current price of Bitcoin in India or limit orders for specifics. Fees range from 0.1-0.2%.
- Secure Your Wallet: Transfer to a personal wallet like Electrum (software) or Ledger (hardware) for safety. Exchanges are custodial, but self-custody follows the "not your keys, not your coins" mantra.
For the easiest way to buy Bitcoin in India online, mobile apps shine. The best place to buy Bitcoin in India is often debated, but platforms with rupee pairs and 24/7 support, like Unocoin, edge out. Avoid peer-to-peer (P2P) unless verified, as scams lurk. By May 2020, daily trading volumes hit ₹500 crore, per industry reports.
If you're eyeing the app to buy Bitcoin in India, consider features like price alerts and SIP (Systematic Investment Plan) tools for rupee-cost averaging—buying fixed amounts regularly to mitigate volatility.
Understanding the Price of Bitcoin in India: Historical and Current Insights
The price of Bitcoin in India mirrors global trends but factors in INR fluctuations. As of 1st May 2020, the price of 1 Bitcoin in India hovers around ₹6,50,000 (approximately $8,600 USD), down from a December 2017 peak of over ₹15,00,000. This volatility defines Bitcoin: the value of Bitcoin in India can swing 10-20% daily.
To contextualise, let's examine the rate of Bitcoin in India over time. Bitcoin's starting price was negligible—launched in 2009 at virtually zero. By 2010, the Bitcoin price in India at 2010 equated to mere cents per coin. In 2015, amid the Mt. Gox hack fallout, it stabilised around ₹15,000-20,000. Fast-forward to 2017's bull run, fuelled by ICO hype, and it soared. The Bitcoin price in India before 10 years (2010) was under ₹10, while in 2009, it was non-existent in INR terms.
Today’s price of Bitcoin in India, as tracked on exchanges like CoinDCX, reflects macroeconomic cues: COVID-19 stimulus boosted liquidity, yet lockdowns curbed retail frenzy. Use a Bitcoin price in India calculator or converter for real-time INR equivalents. For charts, the Bitcoin price in India chart on TradingView shows candlestick patterns, with daily closes aligning to UTC (around 5:30 AM IST).
The share price of Bitcoin in India isn't literal—it's not a stock—but its market cap exceeds $150 billion globally. Historical data reveals patterns: post-halving rallies, like the one anticipated after May 2020's event, often lift prices 300-500% within a year. The value of 1 Bitcoin in India today underscores its growth: from ₹1 in 2010 to lakhs now.
For precision, tools like the Bitcoin SIP in India calculator help simulate investments. Input ₹1,000 monthly since 2015, and you'd hold value exceeding ₹5 lakhs by May 2020—highlighting compounding amid dips.
How to Invest in Bitcoin in India
How to invest in Bitcoin in India requires prudence, given its risks. Start small: only allocate what you can afford to lose, as Dhruv Rathee wisely advises in his analyses. The best way to invest in Bitcoin in India is diversification—limit to 5-10% of your portfolio.
Options include spot trading (buy/hold), futures (leveraged, risky), or staking alternatives via DeFi, though nascent in India. For the best app to invest in Bitcoin in India, Binance's WazirX integration offers low fees and educational resources.
Consider dollar-cost averaging: invest fixed INR weekly, smoothing volatility. Can I invest in Bitcoin in India? Absolutely, via regulated exchanges. Track with a Bitcoin investment in India app like Delta for portfolio insights.
Long-term, view Bitcoin as a hedge against inflation—India's 4-6% annual rate erodes savings, while Bitcoin's scarcity counters this. Short-term trading demands timing: the best time to trade Bitcoin in India aligns with global peaks (US hours, 7-10 PM IST).
Tax on Bitcoin in India
Tax on Bitcoin in India treats it as a virtual digital asset (VDA) under the Income Tax Act. Gains from selling are capital assets: short-term (held <36 months) taxed at your slab (up to 30% + cess), long-term at 20% with indexation benefits. Crypto tax in India explained: report in Schedule VDA of ITR-2 or ITR-3. Losses can't offset other gains, per 2022 amendments—but as of May 2020, pre-clarity, consult a CA.
For example, buy 0.1 BTC at ₹5,00,000, sell at ₹7,00,000: ₹20,000 gain is taxable. Crypto tax in India date traces to Finance Act 2012, but specifics evolved. Use tools like Koinly for tracking.
Advantages of Bitcoin
Bitcoin's strengths shine in India. Decentralisation means no RBI devaluation whims—its value of Bitcoin in India is market-driven. International remittances save 6% fees; a ₹1 lakh transfer costs ₹500 vs. ₹6,000 traditionally.
Blockchain, Bitcoin's backbone, ensures transparency: every transaction is immutable, aiding audits. By 2020, banks like HDFC piloted blockchain for trade finance. For do they use Bitcoin in India? Yes, NRIs remit via crypto, and startups accept it.
Disadvantages and Risks
Volatility is Bitcoin's Achilles' heel. The price of a Bitcoin in Indian rupees can halve overnight, as in March 2020's 50% crash. Transaction times, though improving (10-60 minutes), lag Visa's seconds. Scalability issues persist, with fees spiking during congestion.
Critics cite illicit use, but blockchain's pseudonymity isn't anonymity—exchanges report to FIU-India. In developed nations, adoption proves otherwise. Can I mine Bitcoin in India? Yes, but high electricity costs (₹7-8/kWh) deter; cloud mining apps exist, though regulated.
The Role of Apps and Platforms in India's Crypto Ecosystem
Apps democratise access. The cryptocurrency in India best app? Arguably CoinSwitch Kuber for zero fees on trades. Bitcoin trading in India app like Pocket Bits offers P2P, but stick to FIU-registered ones.
For Bitcoin mining in India app, NiceHash proxies computation, bypassing hardware needs. Buy Bitcoin in India app downloads surged 300% post-RBI lift, per App Annie data.
Global Comparisons and Future Outlook
Bitcoin India exchange like Giottus integrates fiat ramps seamlessly. ETF for Bitcoin in India? Pending, unlike US approvals. Crypto in India ban fears abated, with 10 million users projected by 2025 (Statista).
Will Bitcoin replace INR? Unlikely soon, but coexist as digital gold. Blockchain's ubiquity— from supply chains to voting—ensures legacy.
Empowering Financial Choices
Bitcoin in India, as of 1st May 2020, embodies opportunity amid uncertainty. Whether exploring how to earn a Bitcoin in India via mining or trading, or checking the cost of one Bitcoin in India, informed decisions prevail. Research, diversify, and comply—Bitcoin isn't a get-rich-quick scheme but a tool for the future. Dive deeper into cryptocurrency in India essay resources or exchanges for hands-on learning. The digital asset era is here; navigate it wisely.
Why Ethereum Became the Biggest Bitcoin Alternative in 2020
While Bitcoin remains the undisputed “digital gold”, 2020 marked the year when Ethereum decisively emerged as the most powerful and practical Bitcoin alternative, especially in India. By May 2020, Ethereum was no longer just another cryptocurrency — it had evolved into the backbone of decentralised finance (DeFi), NFTs, gaming tokens, stablecoins, and enterprise blockchain solutions.
In India, where Bitcoin was still largely seen as a speculative store of value, Ethereum captured the imagination of developers, startups, and savvy investors who wanted exposure to the actual “Internet of Value”.
Ethereum vs Bitcoin: Head-to-Head Comparison (May 2020)
| Feature | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|
| Launch Year | 2009 | 2015 |
| Primary Purpose | Digital gold / Store of value | Programmable money & smart contracts |
| Total Supply | 21 million (fixed) | No hard cap (~112 million in May 2020) |
| Block Time | ~10 minutes | ~13–15 seconds |
| Consensus (2020) | Proof of Work | Proof of Work (moving to PoS – Beacon Chain launched Dec 2020) |
| Transaction Capacity | 4–7 tx/s | 15–30 tx/s (Layer-1) + Layer-2 scaling |
| Average Fee (May 2020) | ₹80–₹400 | ₹120–₹1,200 (peak DeFi summer approaching) |
| Market Cap (1 May 2020) | ~₹135 billion USD | ~23 billion USD |
| Price in India (1 May) | ~₹6,55,000 per BTC | ~₹16,200 per ETH |
| Use Cases in India 2020 | Remittance, hedging | DeFi lending, yield farming, NFTs, stablecoins |
Why Indians Started Choosing Ethereum Over Bitcoin in 2020
1. Real Utility Beyond Store of Value
Bitcoin was brilliant at being scarce digital gold, but you couldn’t do much with it except hold or send. Ethereum allowed Indians to:
- Earn 5–20% APY by lending DAI, USDT, USDC on Compound, Aave, dYdX.
- Provide liquidity on Uniswap and earn trading fees.
- Participate in yield farming (the 2020 DeFi summer boom started in June).
- Mint and trade NFTs (Rarible, SuperRare gaining traction).
2. Lower Entry Price
At ~₹16,200 per ETH vs ₹6,55,000 per BTC, retail investors in India could buy whole Ether instead of tiny Bitcoin fractions (satoshis).
3. Faster & Cheaper International Transfers
While Bitcoin took 30–60 minutes with high fees during congestion, Ethereum (especially with stablecoins like USDT-ERC20) settled in minutes and was widely accepted by overseas freelancers and exporters.
4. Indian DeFi Explosion
Platforms like Instadapp, Zerion, and Zapper saw massive Indian sign-ups. Indian developers launched successful projects such as Matic Network (now Polygon), which solved Ethereum’s scaling issues.
How to Buy Ethereum in India – Step-by-Step (May 2020)
The process was identical to buying Bitcoin, but ETH/INR pairs were more liquid.
Best Platforms to Buy Ethereum in India (May 2020)
| Platform | ETH/INR Pair | Deposit Methods | Trading Fee | Notes |
|---|---|---|---|---|
| WazirX | Yes | UPI, IMPS, Bank | 0.2% | Highest ETH volume in India |
| CoinDCX | Yes | UPI, Netbanking | 0.1% (DCX Insta) | Zero-fee INR deposits |
| ZebPay | Yes | UPI, Bank | 0.5% | Oldest Indian exchange, relaunched 2020 |
| Binance | Via WazirX | P2P (UPI, IMPS) | 0–0.1% | Cheapest if using Binance P2P |
| Bitbns | Yes | UPI, NEFT | 0.25% | Offered ETH SIP plans |
Quick Steps (WazirX example – most popular in 2020)
- Download WazirX app → Complete KYC (PAN + Aadhaar)
- Deposit INR via UPI (instant & free)
- Go to ETH/INR market → Place buy order
- Withdraw ETH to personal wallet (MetaMask, Trust Wallet, or Ledger)
Ethereum Price in India – Historical Snapshot (2016–May 2020)
| Year | Average Price (₹) | Peak Price (₹) | Notes |
|---|---|---|---|
| 2016 | 600–900 | ~1,200 | Very low awareness |
| 2017 | 5,000–25,000 | 88,000 (Jan 2018) | ICO mania |
| 2018 | 15,000–60,000 | 1,10,000 | Bear market |
| 2019 | 10,000–18,000 | 24,000 | Recovery |
| May 2020 | 15,500–17,000 | 17,800 (Feb) | DeFi & halving anticipation |
By December 2020, ETH crossed ₹55,000 in India — a 240% rise from May levels.
Tax on Ethereum in India (Rules Applicable in May 2020)
Same as Bitcoin:
- Treated as capital asset
- Short-term capital gains (held <36 months) → taxed at income slab
- Long-term capital gains → 20% with indexation
- No TDS or specific crypto tax yet (30% flat tax + 1% TDS introduced only in Budget 2022)
Staking Ethereum in India (Pre-ETH 2.0)
Although full Proof-of-Stake launched in December 2020, Indian users were already staking on:
- Binance Locked Staking (7–12% APY)
- WazirX (via partnered validators)
- Coinbase (not available in India then)
Risks of Choosing Ethereum Over Bitcoin in 2020
- Higher gas fees during congestion (reached ₹2,000–₹5,000 per transaction in Sep 2020)
- Smart-contract bugs (several DeFi exploits in 2020)
- Slightly more complex than simple Bitcoin HODLing
Was Ethereum the Better Choice in 2020?
For Indian investors in 2020:
- If you wanted pure store of value and inflation hedge → Bitcoin was safer
- If you wanted growth potential + real utility + participation in DeFi → Ethereum outperformed dramatically
From 1 May 2020 to 31 Dec 2020:
→ Bitcoin return in INR: ~+295%
→ Ethereum return in INR: ~+440%
Ethereum didn’t just become “a” Bitcoin alternative in 2020 — for thousands of Indian crypto users, it became the primary choice.
Start exploring Ethereum today on WazirX, CoinDCX, or Binance — the same platforms where most Indians first bought their ETH in 2020.
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