The Indian government recently announced that it is in favor of regulating bitcoin.A task force is being set up to provide recommendations. spoke with the CEO and co-founder of bitcoin exchange Unocoin, Sathvik Vishwanath, to find out the effect this decision has on Bitcoin adoption in India.Also read: Indian Government to Recommend Bitcoin The post Indian Bitcoin Adoption Responds to Government Signalling for Regulation appeared first on Bitcoin News.At only five years old, bitcoin is receiving more venture capital investment than early stage Internet companies were in 1995.Remember what the Internet was like in 1995?If you have 27 minutes to refresh your memory, YouTube has a Computer Chronicle video showing what the 1995 Internet looked like.If not, the piece discusses how hard it was to stream video, how there was no safe way to process credit cards, how ugly the websites looked and how slow the Internet was.Related Link: Bitcoin's Mainstream Readiness To Be Tested At Workshop Things seemed so grim.

In 1995 Newsweek ran a piece: "Why the Internet will Fail."These are the same arguments against bitcoin: hardly anyone uses it, it isn’t safe, and it is hard to use.However digital currencies are so much cheaper, more convenient and more powerful than their analog counterparts that, like the Internet, their widespread adoption seems assured.Which digital currency will triumph?Hundreds or even thousands of competing digital currencies have entered the market.So far none has a clear shot at overtaking bitcoin.Bitcoin’s network effect is growing at a fast rate, making its dominance even more likely.Chart and Chart Data Credit: CoinDesk State of Bitcoin Q2 2014 Tens of thousands of very smart people are working on overcoming bitcoin’s challenges: security, usability and practical use cases.They see every deficiency as a business opportunity.Funding the entrepreneurs are venture capitalists.They see the writing on the wall and want to get in on the ground floor of an industry that is poised to be more disruptive than the Internet.

Their investments fuel more bitcoin-entrepreneurs to quit their jobs, even at marquee companies like Amazon and Facebook.The opportunity isn't limited to venture capitalists, however.A key difference between the Internet revolution and the bitcoin revolution is the accessibility to retail investors. and get exposure to bitcoin.That is like buying an index on the entire bitcoin ecosystem.ebay bitcoin scamsRelated Link: Could Bitcoin Disrupt More Than Finance?litecoin groupUntil Internet stocks went public, there was no easy way for everyday investors to purchase those stocks.bitcoin build visual studioAccess was restricted to large investors.bitcoin mit paypal zahlen

There were no stories of 20 year olds striking it rich after investing less than a thousand dollars like we see with bitcoin.Disclosure: At the time of this writing, David Smith has a long bitcoin position and owns So What’s Bitcoin?Posted-In: Bitcoin Coinbase Venture CapitalTech Best of Benzinga © .Benzinga does not provide investment advice.The digital currency Bitcoin was designed to be independent of any government—a feature that also limits its mainstream appeal.bitcoin atm united statesNow researchers have invented a Bitcoin-like system that could make digital cash more practical by allowing a central bank such as the Federal Reserve to control it.The system, RSCoin, was designed by researchers Sarah Meiklejohn and George Danezis at University College London, at the suggestion of the U.K.’s central bank, the Bank of England.bitcoin us dollar kurs

The bank began researching the idea of issuing digital currency early last year.Ben Broadbent, the bank’s deputy governor, said this month that it could make retail payments more efficient and the financial system as a whole more resilient.Software that can instantly move digital cash from place to place should be able to make many transactions, both large and small, faster and less costly.Like Bitcoin, RSCoin uses cryptography to create a kind of digital cash that’s resistant to counterfeiting.bitcoin acheterAnd in both systems, transactions are verified in a process that adds them to a digital ledger recording all movements of the currency.keeping bitcoin wallet safeHowever, Bitcoin’s ledger is maintained by a collection of computers around the world, operated by various people and companies not sworn to any central authority.buy bulk sms with bitcoin

And its code decrees that there can never be more than 21 million Bitcoins (they are being trickled out over time, and 15 million are in circulation today).RSCoin’s ledger is solely in the hands of the central bank, which would also retain a special encryption key that could be used to control the money supply—for example, to take actions like the quantitative easing programs the Federal Reserve and other central banks put in place after the 2008 financial crisis.A small collection of third-party organizations would be chosen by the central bank to process new transactions and submit them for inclusion in the central ledger.Meiklejohn says it would make sense for large commercial banks to play that role.RSCoin’s centralized design, she says, means it can handle very large numbers of transactions, unlike Bitcoin (see “Technical Roadblock Might Shatter Bitcoin Dreams”).Bhagwan Chowdhry, a professor of finance at UCLA, says that by adopting a system like RSCoin, central banks could enable the financial system to serve people much better.

“The benefits of digital currency are immense,” he says.Being able to move money more easily would grease the wheels of commerce and make basic financial services available to more people around the world, says Chowdhry.Integrating digital currency with the existing financial system would make it acceptable to many more people than Bitcoin is.“Though there is a fringe of libertarian population that would not welcome a centralized solution, most consumers would adopt it because they would perceive it to be safe and familiar,” he says.Indeed, one reason a central bank might like a digital currency is that its ledger provides a very detailed record of financial activity.Meiklejohn says that a bank could choose to publish that ledger for transparency’s sake, and that it would also be possible to make transactions partially or fully anonymous.RSCoin has so far been tested using 30 different computers inside Amazon’s cloud computing platform.Meiklejohn says she is talking with the Bank of England about doing more research on how it might be implemented in practice.Meiklejohn and the bank are also interested in how a system like RSCoin could help banks and other financial institutions move conventional assets around and how it might automate certain transactions such as futures contracts.