Despite being around for six years, Bitcoin and the appeal of virtual currencies as an investment option is yet to break ice with the tech-savvy in Hyderabad. Interestingly, investors in tier two cities and towns are furiously trading big money through Bitcoin, notes BTCX India, the only exchange in this part of the country, which ironically is located in the city.
Bitcoin is a virtual currency that can be used for trade. A record of all Bitcoin transactions are maintained in a public ledger called Blockchain.
As the ledger is public, the system is hailed by proponents as an alternative to centralised systems that facilitate monetary transactions, like modern-day banking. The security of transactions and creation of new coins, also called mining, is closely linked to digital encryption.
Reception to Bitcoin in India has been marked by caution and its adoption delayed compared to trends seen in countries like the US, China and Singapore.
Hyderabad’s first and currently its only exchange, BTCX India, which has been around for nearly two years now, has steadily seen its client base grow in Vijayawada, Vishakapatnam, Nellore and Hindupur in AP. In Telangana, Bitcoin seems to have caught the fancy of people in Karimnagar and Nizamabad.
BTCX’s founder and CEO M. Kamesh said interest in Bitcoins from small towns like Hindupur, was a surprise.
“We were surprised to have clients from there, indulging in sizeable trade on regular basis. As per the KYC documents submitted to us, an estimated 180 clients are from Hindupur,” he said.
Though seemingly small, it is relatively bigger than the 115 from Hyderabad who use the company’s services. AP and Telangana put together rank third on BTCX’s clients list which is topped by users from Gujarat and Maharashtra.
Though no reasons seem to adequately explain why small cities and towns are seeing more activity, one theory is that small transactions are payments being earned by freelancers providing services to employers abroad. Bitcoin transactions do not accompany the hefty fee that other money transfer service providers charge.
On the other hand, others working in the Bitcoin arena say that interest in Bitcoin is yet to catch fancy in the country and that Hyderabad is no exception.
“Bitcoin use is generally restricted to those in Hyderabad with friends and relatives in countries like the United States where virtual currencies are being used,” said S. Shiva, who along with others recently ventured into tracking Bitcoin transactions.
Click on the bitcoin logo below to buy, use or accept bitcoin. Unocoin is India’s most popular bitcoin wallet.
To read the bitcoin white paper, visit: https://bitcoin.org/bitcoin.pdf
