Bitcoin is a popular and leading cryptocurrency which is not controlled by any government organization or a bank. Bitcoin mining in India has become popular because this is considered similar to digital gold, but it is not yet declared legal by the government. The biggest reason why Bitcoin mining in India is being considered as a lucrative career opportunity is because the Bitcoin witnessed a 300% increment in value in just a single year. However, in spite of all the curiosity centering on it, it is still unclear whether it is indeed safe to buy and sell the Bitcoin in India.

What do you need for Bitcoin mining in India?

To mine the Bitcoin anywhere you will need specialized hardware for mining, mining software, an online wallet for storing the rewards and mining pools if you do not wish to mine alone.

- When you are looking for specialized hardware to mine this cryptocurrency, you could either decide to set up your own mining rig or sign up for Bitcoin cloud mining services. In cloud mining, you simply have to sign up for cloud mining contracts whereby you get to buy the hash power from the cloud mining service providers in exchange for nominal fees. So, you do not have to worry about building or maintaining a rig for mining; you can get the hardware from remote data centers. While it is possible to start mining using the hardware or computers at home, you will soon find yourself losing out on profits because of the incredibly high power costs and the low-yielding capacity of the mining devices. You will need to invest in ASICs which are specifically designed for mining the Bitcoin. These guarantee much higher mining speeds and they consume far less electricity compared to the CPUs and GPUs. Cloud mining services, on the other hand, are easily available but you have to make sure these are not scam companies or companies engaged in Ponzi schemes.

- For Bitcoin mining in India, miners would also need a wallet for storing the Bitcoins. You can choose from a variety of wallets which are available online. When you choose one, you will be provided with a wallet address that comprises of a series of letters and numbers. The wallet offers a public address to which others can send you Bitcoins. Miners will also be provided with private keys which are nothing but passwords to the wallets.

- For people who are not keen to do solo mining, joining a pool is the next obvious step. The main idea behind a Bitcoin mining pool is to improve the chances of getting rewards since an average miner will only have limited computing power. When miners share their resources they can mine faster and the rewards thus earned are divided amongst members depending on each miner’s contribution. Before joining a mining pool, it is also recommended that you check the reputation of the pool, the payout structure, the fees etc.

- With Bitcoin mining hardware you will also need specific mining software to do Bitcoin mining in India. While pools may have their own distinct software there are some pools where miners get to choose the mining software. Here also, the miner can choose from a variety of options depending on nature of the mining rig they use. The popular mining software and the CGMiner and BFGminer.

While Bitcoin mining in India may be a topic of much discussion, the truth is no government has officially shown acceptance of this system. While there are banks which may have taken some positive steps in this regard, the government continues to be skeptical and is still assessing and examining this new digital economy from every angle. There are quite a few aspects which are making governments unsure and uncomfortable and till these get resolved, they are not likely to accept Bitcoin mining. Perhaps the biggest threat is that of tax evasion and unaccounted income. When your money gets stored in bank accounts, the government knows where it is. But when they do not know the location of a digital wallet, chances of money laundering are high.

Cryptocurrency mining has a decentralized nature which is why no government seems to be comfortable with it. There is really no one authority which can be held responsible. Besides, existing cryptocurrencies may well lose their value which new cryptocurrencies may soar in value at any time. This makes it highly unstable for any national economy to function properly. So, Bitcoin mining in India continues to be in the grey zone; there is no law as yet on Bitcoin mining being a criminal activity. At the same time, this practice is not considered legal.