As we all know, in ancient times, the barter system was used in abundance. As human civilization evolved, there were many changes in the exchange system, and today we have a variety of options.
In today’s world, while we have another paper money and coins, on the other hand, digital money facility in the form of electronic wallets, debit cards, credit cards, etc., is also available and the entire system is controlled by the Central or Common Authority.
Cryptocurrency is a similar digital currency but it is in Decentralized format i.e Transactions.
What is Cryptocurrency?
Cryptocurrency is a digital currency used in trading and transactions. The funniest part about it is that it is a Decentralized currency, that is, no Government institution or Government can control it.
It mainly works on the principle of cryptography. In cryptography, information is protected with the help of codes and this information can be read only by the person for whom it is created.
It is believed that such Transactions are not at all likely to have any duplicate transactions. A lot of Cryptocurrencies decentralized works on networks known as blockchain technology.
It is a list of records that increase over time. Apart from this, they also have a single network also known as mining, and all the funds are placed in it.
A cycle by which Cryptocurrency is approved is called Mining. Bitcoin, Litecoin, Ethereum, Z-cash, etc. are some of the examples of Cryptocurrencies.
How is Cryptocurrency bought?
You have to open a digital wallet. This is where you can keep your currency and buy or sell goods or services.
Whenever there is talk of Cryptocurrency, the first name comes from Bitcoin. The first Cryptocurrency was Bitcoin and then others came into existence such as Ethereum, Litecoin Dark, coin dash, etc.
Bitcoin started in the market in 2009 and since then bitcoin’s name has come at the forefront of cryptocurrencies. In 2017 alone, its value increased from $1000 to more than $19,000.
Ethereum is another cryptocurrency that came into existence in 2015. The highlight of this is that it allows you to have smart contracts and DApps Usage without any scam or fraud. It also regulates 3rd party interaction.
Bitcoin also has Cryptocurrency which started in 2011 and is almost similar to Bitcoin. The highlight of this is that it has transaction fast pace.
Why are Cryptocurrencies so famous in India?
The demand for Cryptocurrency and fame in India is constantly increasing, so let us know some of the reasons for this:
- Independent of human intervention.
Cryptocurrencies are highly preferred for online international transactions. Since it is a digital currency and Decentralized, there is no interference of any Government or human being.
This is a very easy way whenever a business wants to Transactions internationally. That is why many companies like it very much.
Due to government negligence, the possibility of money misappropriation becomes 0. That is why it is being liked a lot.
- Easy use and transparency.
Their value also varies in the international market in the same way as the value of stocks varies. You can also invest in them. Therefore, they can be used as currency and also as an investment. If we talk about the last few years, it has also given very good returns.
It was because of its existence that a variety of startups emerged and many companies started opening up that manufacture software for blockchain. This increased the trend of crypto.
- Secured Transactions.
Many experts claim that it is impossible to hack cryptocurrencies and blockchain. Moreover, the data of blockchain technology can be seen by all people. Due to this, there is no fraud in the name of the transaction fee.
All kinds of data are updated every moment leading to transparency. Further, it cannot be reversed once the transaction is completed.
This increases its security, which makes it not possible for any 3rd party to intervene and all the work is done through technology, which does not even lead to any possibility of human fraud.
- Speed of Transactions.
The transactions in them are at the speed of electricity. It can have more than one type of transaction at a time without any problem. That is why people and many businesses support this currency so much.
Since the birth of Cryptocurrency, its popularity has been steadily increasing and many experts consider it to be the currency of the future, but different people have different opinions about it. But it can be said that it is a different or unique type of currency in itself.
Are Cryptocurrencies legal in India?
Its popularity in many Asian countries like China, etc., is steadily increasing and the number of transactions in India is continuously increasing, but when its popularity started increasing, the Federal Government of India planned to ban it.
RBI is concerned about the safety of investors. Since the value of Cryptocurrency fluctuates considerably in a very short time, it is also a matter of concern.
It may also lead to a new type of fraud and internet fraud, but the increasing number of Transactions is responsible for increasing its value.
In 2018, RBI ordered commercial banks to ban crypto traders and services, but in March 2020, the Supreme Court abolished the ban and at the same time the Coronavirus hit.
At this time, there were Lockdown and government restrictions all over India and at this time the trend of Cryptocurrency increased further.
the Crypto exchange saw an increase of more than 10 times. In addition, the crypto exchange of the USA has also promoted international crypto transactions in collaboration with the Indian Crypto Exchange since April. Since corona led to a sharp fall in the value of many traditional assets, the digital currency was further boosted.
Based on a report by the Ministry of Finance in June 2020, the Government of India decided to reconsider banning it. In any case, crypto trade authorities guaranteed that crypto can likewise be utilized as a trade framework and prohibiting it will Conclusion.
People all over the world have different opinions and different views on cryptocurrencies and the basis of this is divided into 2 parts of the world. Some people want the trend of this new digital currency to get a boost, while others are calling the system dangerous, but despite these two opinions, cryptocurrency is on the rise.
On the one hand, while Bill Gates, AI Gore (Nobel Prize winners), Richard Branson, etc., are supporting cryptocurrencies, people like Waren Buffet, Paul Krugman, Richard Shiller are opposed to it and call it a Ponzi scheme that can promote criminal activities in future.
Although some Cryptocurrencies strings have been found to be linked to terrorist activities, rules related to its regulation are also likely to come in the future.
Many forecasters claim that more than 25% of the national currency will be replaced by cryptocurrencies by 2030. This can lead us to conclude that a lot of people will start relying on cryptocurrencies. As more people start accepting it as a currency, so will the volatility in its value and its value will continue to fluctuate very fast.