Cryptocurrency is a digital asset used as a medium of exchange. In India, cryptocurrency has a lot of work to do. Despite lack of regulations, Indian law protects cryptocurrency investors. The Reserve Bank of India’s announcement on cryptocurrency has destabilized both the trader and investor community as they would face massive loss.
In a recent statement, the Deputy Governor of RBI B.P Kanungo said: “The RBI has warned on at least three occasions divisions of the public and users of the virtual currency considering risks they are revealing themselves to through these cryptocurrencies.”
In a recent economic exhibition conducted by the Top Engineering Colleges in Punjab, the guest of the event Mr. R.K Tendon categorically distinguished different cryptocurrencies in function. Broadly they are of three types, Digital currencies, Alternative currencies, Virtual currencies. He even stated that the major difference between the banking system and cryptocurrencies is that cryptocurrencies deal with the decentralized structure as opposed to centralized electronic money and central banking system.
The operational part is such that each cryptocurrency works through a blockchain which is a public transaction database. The complete process is used as a medium of exchange which uses cryptography to guard its transactions, to control the production of additional units. Venezuela offers India 30% discount on crude oil but with cryptocurrency riders.
Today cryptocurrency is painful to counterfeit because of security features. Besides, Cryptocurrencies feature a unique property which is that it is organic and arguably its most enduring allure. The central authority does not render it.
In the latest chain of events in Top B.Tech Colleges in Punjab, professors of different colleges discussed regarding the breakdown of cryptocurrencies. The suspicious nature of cryptocurrencies has mended different to bring specific changes as it indulges in a host of nefarious activities like money laundering and tax exclusion or evasion.
The first cryptocurrency came into existence is BITCOIN which was launched in 2009 by an individual group Satoshi Nakamoto. Besides, in a report published it was found that 14.6 million bitcoins were in circulation during 2015 with an estimated value of $3.4 billion. Looking at the growth and success of BITCOIN, several other cryptocurrencies came into existence like PPCOIN, LTECOIN. There are several benefits and disadvantages of cryptocurrencies. Cryptocurrencies ease the process transaction between two parties. As a result, the transfer of funds is easily accessible.
These transfer are facilitated through the use of public and private keys for security purposes. It reduces the transfer cost which is demanded by banks and other financial institutions. The biggest drawback is that if a drive crashes, or a virus crashes data, and as a result, the wallet file is corrupted. Unfortunately, this can bankrupt an investor.
Cryptocurrencies can be used in different sectors such as online casinos, lotteries, and dice sites. There are several reasons of cryptocurrencies for not being the mainstream.
The biggest reason is that whether cryptocurrencies can reach the real economy with a period. Cryptocurrency is hard to spend as the liquidity in crypto markets is shaky. Many people are unaware of the major effects of cryptocurrencies as it is poorly understood. Some have also stated that crypto is too volatile as cryptocurrencies prompt too many legal questions. Certain consumers are not that brave in investing in cryptocurrencies. Cryptocurrency will face its doom if this trade goes on, so a proper counselling is required to take appropriate and immediate steps in future.