Cryptocurrency Bitcoin: Bitcoin continued its streak of hitting record highs, rising above $99,000 for the first time. The cryptocurrency has jumped more than 40 percent in just two weeks. Bitcoin is now close to a million dollars, two years after falling below $17,000 following the collapse of the crypto exchange FTX. This surprising rally comes at a time when industry experts are hoping that the incoming Trump administration will bring a more favorable policy for crypto to regulate digital currency. According to CoinDesk, Bitcoin was trading at $98,882 on Friday morning.

Why is the price of Bitcoin increasing?

Trump was previously skeptical about cryptocurrencies, but he changed his mind before the election and sided with cryptocurrencies. He pledged to make the US the crypto capital of the earth and create a strategic reserve of Bitcoin. He also accepted cryptocurrencies as donations during his election campaign. Supporters of the crypto industry welcomed Trump's victory. They hope that he will be able to push through the legislative and regulatory changes they have been lobbying for for a long time.

What is Bitcoin?

Cryptocurrency is a digital currency that is secured by cryptography (code). It is almost impossible to counterfeit or duplicate them. They exist on a decentralized network using blockchain technology. Blockchain is the technology that operates currencies like Bitcoin. Bitcoin is the name of the most popular cryptocurrency, for which blockchain technology was created. Cryptocurrency has no physical existence. Its supply is determined by the protocol, not by the central bank.

Is Bitcoin legal or illegal in India?

Talking about its legal aspect in India, the government is preparing a framework for cryptocurrency. However, it cannot be called illegal until it is implemented. The government had announced a tax of 30 percent on the profit from cryptocurrency in 2022. However, despite imposing a tax on income from cryptocurrency, cryptocurrency cannot be considered mandatory and clearly legal. The Reserve Bank of India (RBI) is also skeptical about the use of private crypto assets and considers it a major threat to the country's macroeconomic and financial stability.