The Scope of Cryptocurrency Technology in IndiaAugust 8, 2018
In addition to the day-to-day politics, if there is any news which haunts the television shows in India, it is cryptocurrency. In order to have an idea about the scope of cryptocurrency in India, it is equally important to go into the depths of its evolution. It has gained acceptance all over the finance sector. However, in India, the Reserve bank of India has declared transactions to be independent, and the Indian government is not answerable to any gains or losses.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a virtual currency which utilises encryption techniques to make transactions. The plus point of using this currency is that every single deal you make is transparent and secure. Some of the peculiar features of this currency are:
- Transfer of funds between two parties becomes more relaxed with a negligible processing fee.
- It makes use of blockchain technology to secure and encrypt transactions, whose database is highly secure and unalterable.
- It is outside the ambit of governments and central banks of countries.
Also Read: Top 6 Incredible Benefits of Cryptocurrency
However, there are some risks associated with it as well. These are as follows:
- The rates of exchange fluctuate by large margins which makes the little investment bit risky.
- These are prone to hacking.
- These are often used to make transactions for activities which are harmful to a nation’s economy such as terror funding or money laundering.
Despite all the odds, cryptocurrency is still the favourite investment spot for those involved in the trading world.
BITCOIN- THE MOST POPULAR CRYPTOCURRENCY
Bitcoins are the rulers of the cryptocurrency market. Although these are not legal tenders, still they chart high on market trends. Bitcoin is the first digital currency used to make transactions. The price of a bitcoin depends on bitcoin mining. More the number of bitcoins, the more it becomes difficult to add in the blockchain. These are eminent rivals to government currency.
SCOPE OF CRYPTOCURRENCY IN INDIA
A country like India which has recently faced demonetization has developed great affection for cryptocurrencies in the recent past. It has been nearly five years since bitcoin made its debut in Indian Financial markets. In India, the transactions made through cryptocurrency are on the rise despite the notifications circulated by the finance ministry. This makes it clear that the upcoming future of bitcoin in India is dazzling. There are about 1548 cryptocurrencies currently operational in the market available as an alternative to Bitcoin.
Since bitcoin is not available in the physical form, this virtual currency can be converted into physical form by listing it on various online exchange platforms. Taxing the cryptocurrency is another way to legalise this currency. It becomes clear that it is a risky investment option, but there is no harm in opting for a calculated risk.
CONSEQUENCES OF BANNING CRYPTOCURRENCY IN INDIA
- Ban has never been a solution to any problem. Instead, a ban can result in brain-drain. If investors are not allowed to make transactions in bitcoin, they might shift to other countries like US and Canada where the use of cryptocurrencies is permissible.
- Money- minded people will never mend their ways. Instead, they would find some loopholes in the system which will eventually lead to an increase in cryptocurrencies through illegal means.
The government should make its stand clear since banning a promising technology might mean that India has to suffer backlog in a technique in which the whole world is continually improving. Realizing the importance of bitcoin, Marc Kenigsberg aptly said “Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.”