What is the meaning of Cryptocurrency
Since the inception of Bitcoin in 2009, recognition of cryptocurrency has grown swiftly. Many other new cryptocurrencies are released seeing that then and extensively used as a medium of alternate. Because of its popularity and usability, charge of bitcoin has already been touched $63000 in April 2021.
A cryptocurrency is a digital or virtual foreign money that is highly secured with the aid of cryptography or encryption techniques which makes it almost not possible to counterfeit such cryptocurrency. Those cryptocurrencies are designed to work as a medium of exchange. Cryptocurrencies are normally not issued with the aid of the authorities company of any u . S .. The decentralized nature of cryptocurrency networks shields it from any manipulate of government regulatory bodies on it.
What are the different types of Cryptocurrency
Top 10 Cryptocurrencies
Bitcoin is the first kind of cryptocurrency that currently remains the maximum used, valuable, and popular. After bitcoin, many other opportunity cryptocurrencies with various ranges of features and specs were created. Bitcoin that is the most popular cryptocurrency became released in 2009 via an character or institution known by the pseudonym “Satoshi Nakamoto". In the month of April 2021, the charge of bitcoin crossed $63000.
Within the wake of the achievement of Bitcoin, many other cryptocurrencies have been released. A number of those cryptocurrencies are clones or forks of Bitcoin, while others are new cryptocurrencies constructed from scratch. Those cryptocurrencies are called "altcoins". Ethereum, Solana, Litecoin, Cardano, Namecoin, etc are some other popular cryptocurrencies.
Advantage of Cryptocurrency
Thru cryptocurrency finances transfer between two parties may be clean and there is no want of 0.33 birthday party like credit/debit playing cards or banks. It can assist save money and time for both the remitter and the receiver as it is performed entirely at the internet. Cryptocurrency runs on a mechanism that entails very much less transaction fees which makes it a cheaper alternative in comparison to other online transactions. As the payments are encrypted, they're safe and secured and provide an exceptional degree of anonymity.
Disadvantage of cryptocurrency
As there is no law over cryptocurrencies, it is a possibility that cryptocurrency can be used for unlawful activities which includes cash laundering, tax evasion, and possibly even terror-financing. Another drawback of cryptocurrencies is that they are not prevalent anywhere.
Cryptocurrency in India
Because the inception of most famous cryptocurrency i.E. Bitcoin inside the year 2008, cryptocurrencies have received a good deal significance all around the international which includes India. Now government of India has framed a rule for transactions and reputation of cryptocurrencies and marked India’s first step towards entering the new section of digital revolution. A flat 30% capital gains tax on crypto earnings and a 1% tax-deductible at source (TDS) on all transactions regarding crypto, no offsetting of losses, and taxation of crypto gifts was proposed with the aid of Finance Minister for the duration of the budget speech. However, cryptocurrencies remain unregulated in India, and taxing cryptocurrencies does now not lead them to prison.
Is banning cryptocurrencies a problem?
Banning cryptocurrencies can also result in an exodus of each expertise and commercial enterprise from India. Additionally, blockchain and crypto specialists may circulate to nations wherein crypto is regulated. A blanket ban on cryptocurrencies may also halt blockchain innovation which has uses in governance data economy and electricity.
As the use and acceptability of cryptocurrencies are swiftly growing across the world, largest companies such as Tesla and mastercard has adopted cryptocurrencies, a ban on cryptocurrency may deprive India, its marketers, and residents of transformative generation.
Because the cryptocurrency has its very own advantages and drawbacks, regulation of cryptocurrency is wanted to save you extreme problems to make certain that cryptocurrencies are not misused, and to shield unsuspecting buyers from immoderate market volatility and feasible scams. But, regulation desires to be clear, transparent, coherent with a imaginative and prescient that makes investments and transaction in cryptocurrencies safe. Authorities should adjust the trading of cryptocurrencies via including stringent KYC norms, reporting and taxation.
Cryptocurrency is getting popularity rapidly and many large scale companies are accepting it. From it, it is expected that cryptocurrency is next phase of digital revolution and has the potential to channel its human capital, expertise and resources into this revolution.