As we all know the barter system was used extensively in ancient times. As human civilization developed, so did many changes in the exchange system and today many types of options are available in front of us.
In today’s era, where there is other paper money and coins in front of us, the other hand facility of digital money is also available in the form of electronic wallets, debit cards, credit cards, etc. and this whole system is controlled by central or common authority.
Cryptocurrency is also a similar digital currency but it is in a decentralized format, that is, there is no involvement of any kind of central authority or server in its transactions.
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What is Cryptocurrency?
Cryptocurrency is a digital currency that is used in trading and transactions, in a way it also works as paper currency but it is not in physical format. The funniest thing about it is that it is a decentralized currency which means no government organization 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 only be read by the person for whom it is created.
It is believed that there is absolutely no possibility of any kind of duplicate transaction in this type of transaction. Many Cryptocurrencies work on decentralized networks which are known as Blockchain technology. It is a list of records that grows over time. Apart from this, there is also a single network which is also known as mining and in this, all the funds are kept. A process by which Cryptocurrency is validated is called Mining. Examples of some Cryptocurrencies are Bitcoin, Litecoin, Ethereum, Z-cash, etc.
How to buy Cryptocurrency?
You need to open a digital wallet. This is where you can keep your currency and buy or sell goods or services.
Whenever we are talking about Cryptocurrency, the first name that comes to mind is Bitcoin. The first cryptocurrency was bitcoin and after that others came into existence like – Ethereum, Litecoin Dark, coin dash, etc.
Bitcoin was introduced in the market in the year 2009 and since then till date, the name bitcoin comes to the forefront of cryptocurrency. Only in 2017 has its value increased from $1000 to more than $19000.
Ethereum is another cryptocurrency that came into existence in 2015. The special thing about this is that in this you get the facility of smart contracts and DApps usage without any kind of scam or fraud. Apart from this, it also regulates 3rd party interaction.
Litecoin is also a Cryptocurrency that was started in 2011 and it is almost similar to Bitcoin. The special thing about it is that transactions are done at a fast speed.
Why are Cryptocurrencies so famous in India?
The demand and fame of Cryptocurrency is increasing continuously in India, so let’s know about some of the reasons –
- Free from human intervention –
Cryptocurrency is highly preferred for online international transactions. Since it is a digital currency and decentralized, there is no interference of any kind of government or human being in it.
Whenever a business wants to do transactions at the international level, then this is a very easy way. That is why many companies like it very much.
The possibility of money misappropriation due to government negligence becomes 0 in this. That’s why it is being liked a lot.
- Ease of use and transparency –
Their value also keeps on changing in the international market in the same way as the value of stocks keeps on changing. 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, then it has also given very good returns.
Its existence has led to the emergence of a variety of startups and the opening of many companies that make software for the blockchain. Due to this the trend of crypto increased further.
- Secured Transaction –
Many experts claim that it is impossible to hack cryptocurrencies and blockchain. Apart from this, the data of Blockchain technology can be seen by all the people. Due to this there is no fraud in the name of transaction fee.
All types of data are updated every moment due to which transparency is maintained. Apart from this, once the transaction is completed, it cannot be reversed.
This increases its security, due to which any kind of 3rd party intervention is not possible and in this all the work is done by technology, due to which there is no possibility of any kind of human fraud.
- Speed of Transactions –
The transactions taking place in them happen at the speed of lightning. In this, more than one type of transaction can be done at a time without any problem. Because of this, people and many businesses support this currency so much.
Since the birth of Cryptocurrency till date, its popularity is increasing continuously and many experts consider it to be the currency of the future but different people have different opinion 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 is increasing continuously in many countries of Asia like China etc. And the number of its transactions is increasing continuously in India too, but when its popularity started increasing only the Indian Federal Government made a plan to ban it.
RBI is concerned about the safety of investors. Since the value of Cryptocurrency fluctuates a lot in a very short period of time, it is also a matter of concern.
Through this a new type of fraud and internet fraud can also be born, but the increasing number of its 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 lifted the ban and at the same time the corona virus also knocked.
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 a growth of more than 10 times. Apart from this, the crypto exchange of USA has also promoted international crypto transactions in association with Indian crypto exchange since April. As the value of many traditional assets fell drastically due to Corona, this gave a further impetus to the digital currency.
In June 2020, on the basis of a report by the Ministry of Finance, the Government of India decided to reconsider the ban. But crypto exchange officials claimed that crypto can also be used as an exchange system and banning it will make a direct difference to many people.
People all over the world have different opinions and different views regarding cryptocurrency and on the basis of this the whole world is divided into 2 parts. Some people want that the trend of this new digital currency should be encouraged more, while on the other hand some people are calling this system dangerous, but despite these two opinions, the trend of cryptocurrency is increasing.
On one hand, where Bill Gates, AI Gore (Nobel Prize winner), Richard Branson etc. are supporting crypto currency, on the other hand people like Waren Buffet, Paul Krugman, Richard Shiller are against it and call it a Ponzi scheme. may encourage criminal activities in the future.
Although the strings of some Cryptocurrencies have been found linked to terrorist activities, there is a possibility of rules related to its regulation in the future.
Many futurists claim that by 2030 more than 25% of the national currency will be replaced by cryptocurrencies. From this we can conclude that many people will start trusting in crypto currency. As more people start accepting it as a currency, the volatility in its value will also increase and its value will continue to fluctuate very rapidly.
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