Today in the modern economy, we all have real money in the form of paper and coins and also the Digital money in the form of electronic wallets, debit and credit cards, etc. which are controlled by central or common authorities. Cryptocurrency has been in the news lately following ferocious price swings and with a boom in trading that meant most of the new-comers have started dabbling in the asset class.
All you need to know about Cryptocurrency:
Cryptocurrency is quiet a digital currency that is utilized in trading and transactions. It is a bit like paper money,only that it’s not present physical. A fun fact is that a cryptocurrency is purely a decentralized sort of money, meaning it’s not and can’t be regulated by any government or group of governments.
It is believed that it’s impossible to involve within the duplication of the transactions or involve counterfeit currency during this mechanism. Many cryptocurrencies are decentralized networks supported blockchain technology; it’s an inventory of records that are growing all the time. They are known as blocks that link and secure each type of cryptocurrency. Then there’s one network called mining, during which all the funds are kept. In other words, a process by which the cryptocurrency is validated is named mining. Some of the favored cryptocurrencies are Bitcoin Ethereum and Z-cash.
How Cryptocurrency is purchased?
In order to purchase a cryptocurrency, you will need to open a digital wallet. This is the place where you can use your currency and can purchase or sell goods and services.
So, whenever the term cryptocurrency is used, Bitcoin comes hand in hand. The original and first form of cryptocurrency was called Bitcoins.
The demand for cryptocurrencies have grown steadily in India due to the following reasons:
• Cryptocurrencies are great and are most preferable for online international transactions without any glitch . Since it is a digital currency that is decentralized, there would not be any need to go to any government body when participating in any of the international financial transaction.
• It encourage any business interaction without the interference of any government body, which has been one of the issues for some businesses face when they go international.
• Since the cost of cryptocurrencies are also being traded within the market, there might be a possibility for humans to make investments and have interaction in arbitrage as they make use of blockchain technology.
• Cryptocurrency has been verified to be a rapid means of transaction, as fast as light. It also does multiple transactions at a time without any mix-up whatsoever.
Are cryptocurrencies legal in India?
As cryptocurrency’s benefits kept rising in China and spreading through out Asia, India, as a country, has been diligently using it as one of the major means of the online transaction. But since neither they are recognized by government as legal tender nor they are regulated by RBI. Like how people trade in gold without government making law for it, same is the status of cryptocurrency.
Top 10 cryptocurrencies by market capitalization
Therefore, Government panel decided to see how this technology can help fintech to maximise the potential that is has got so as to continue this and prove its benefit in the future.