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what is crypto currency
On January 2, 2021, the price of one bitcoin rose by 11 percent to a level of around Rs 24 lakh. In the year 2020, its price increased by more than 300 percent, in the month of December alone, bitcoin has given a return of 50.37 percent to the investors.
How many cryptocurrencies are there in the market in total?
According to an estimate, the price of one bitcoin can reach one crore rupees by the year 2030. According to a report in February 2020, there are more than 5,000 cryptocurrencies in circulation worldwide, with a market capitalization of $119.46 billion and bitcoin remains the world’s largest cryptocurrency with a market capitalization of approximately $350 billion.
As of June 2020, it had around 20 million users in the world, while bitcoin has more than five million users in India. More than 70 percent of investors under the age of 30 invest in cryptocurrencies in India.
Is cryptocurrency banned in India?
The trading of bitcoin in India was banned by the Reserve Bank of India in 2018, which was later lifted by the Supreme Court. However, other cryptocurrencies are still banned in India.
Last year, the media was quoted as saying that a bill banning crypto currency would be introduced in Parliament in 2019, but it has not yet been tabled in the Parliament. Cryptocurrency trading is done digitally.
The price of a share in the stock market is determined by looking at the financial condition of that company, but there is no basis for deciding the price of cryptocurrency. Like the current currency, crypto currency has nothing to do with inflation.
It is also free from market volatility. Due to its transaction being illegal, no one can be punished in the dispute related to it. Since it is not associated with any bank or financial institution, it also has no regulator.
Last year, the Inter-Ministerial Committee on Cryptocurrency, constituted under the chairmanship of the then Finance Secretary Subhash Garg, recommended a fine of up to Rs 25 crore or imprisonment of 10 years or both for banning it, indulging in any activity related to currency. Had it.
Can cryptocurrency be converted into a legal currency?
After the full use of crypto currency, there will definitely be a change in the economy of the country and the world. It is believed that after the crypto currency becomes a legal currency, the existence of banks will end. Many parameters of the economic sector will also change.
In such a situation, the question is that those people who are unaware of crypto currency today, where will they keep their money, from where will they take loans if needed, who will settle the dispute if there is a dispute. Cryptocurrency philanthropists do not have the answer to all these questions. Investing in it is also risky.
How much risk is investing in crypto currency
Sometimes its price drops by 40 to 50 percent in a few hours. Today most of it is being used illegally. The man who opened the country’s first bitcoin ATM in Bengaluru was arrested last year.
Through this ATM, traders wanted to trade in crypto currency by depositing money in their crypto wallet. Crypto currency exchange ‘Unocoin’ is currently offering trading in 30 cryptocurrencies.
Due to the restrictions imposed by the Reserve Bank of India, this exchange is constantly looking for new options to increase the crypto business. Under this, a new option was revealed in the form of crypto ATM.
The growth in the business of this currency shows that its traders are also not in favor of banning it. Traders are trading crypto currency in India without any regulator.
Traders want better regulation and clear laws in this regard than banning it.
Security challenges such as hacking, password theft and malware attacks are also present with electronic wallets designed to store this currency.
Since, this currency is not minted in any mint, its transaction is not legal like other currencies. Cryptocurrency transactions are public, but due to the confidentiality of the user’s identity, it is difficult to identify the user.
Even though bitcoin is considered the latest version of the virtual currency era, it is several steps ahead of existing digital systems.
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FAQ
What is cryptocurrency?
Cryptocurrency is digital currency.
What is Crypto Currency?
Digital currency is called crypto currency.
Can crypto currency be deposited in a bank?
No crypto currency cannot be deposited in a bank as it is a digital currency.
Where can I keep Cryptocurrencies?
Cryptocurrency is kept in a digital locker which also remains online.