ALL ABOUT CRYPTOCURRENCY
Cryptocurrency might be the most viral and debatable topic in the world right now. As a commerce student, who has just started to get to know about the market and its fundamentals, I am going to tell you both sides of the coin of cryptocurrency.
First of all for all the people who don't know what cryptocurrency is let me explain it to you, it is a digital currency in which transactions & records are maintained and verified by a decentralized system using cryptography and not by any centralized authority, let me give an example:
If you are a Paytm user you would know about the coins which the app issues for installation of the desired app. So, if you have 1000coins, that can be converted into 10rs Paytm cash. Imagine if the Paytm coins which can only be converted into Paytm cash came for use in real life, means you can exchange goods or services with the help of Paytm coins. Now coming back to cryptocurrency, like the imaginative coins which could be used as a medium of exchange, crypto is the coins in real life
There are many cryptocurrency, but here we are only going to talk about the top crypto in the world, yes I am talking about 'bitcoin". Fact, if you had invested 1 lakh in bitcoin, in 2010, you would have been a billionaire by now.
Wanna know how and why, what made bitcoin's value touch heights?
CRYPTO IS A MYSTERY
We now know the meaning of cryptocurrency, but how exactly bitcoin the most popular crypto came into existence? So basically on 31st October 2018 a "White paper" titled "Bitcoin: A Peer- to-Peer Electronic Cash System" was released, with the author namely SATOSHI NAKAMOTO. No one could ever identify who this person is till date. He/ She explained how we can make the use of crypto or digital currency in our day-to-day life, which doesn't involve any third party such as bank or government. Well I am not a cryptographic expert, so I am unable to understand this complicated process of block chain technology. As a student I am understanding the future of crypto in global economy. If you are interested to read the famous white paper copy the link below to web search:
VOLATILE NATURE OF BITCOIN
Now that we know what bitcoin is and how it was formed, the question arises, is it worth investing in bitcoin. So there are pros and cons for investing in bitcoin. Obviously there is a huge risk involved and with the fluctuating rates, I will suggest that a person with a heart problem must stay away from the world of cryptocurrency. The thing is one has to be very calm and patient to invest in this world because one minute a bitcoin is worth forty five lakh (in rupees) and in the next minute it can come down to fifteen lakh.
Despite all its limitations digital currency will be the future in my opinion, but right now the government or the banks have no role in the transactions with crypto. That's right, a person can transfer money anywhere in the world without transfer charges, the identity of the person transferring the money and the person getting the money can't be found. I think people all over the world were frustrated with the working of banks after 2008 financial crisis, even in India the fall of banks such as PNB and Yes Bank led people to keep there money out of government records. All this encouraged cryptocurrency especially bitcoin. But with all this comes the bad actors, using this method no record will be maintained about the identity and for which purpose this money will be used. This is the prime reason I think because of which many governments across the world are against the use of bitcoin. In India, RBI filled a case against cryptocurrency in 2018. On the behalf of Indian crypto startups, IAMAI filed a petition in Supreme Court. The central bank failed to prove that any harm is caused by crypto trading to the banks and hence, the the judgement was in favor of crypto players.
CONCLUSION
It has been over ten years since the announcement of bitcoin, now I think that the government has given up on the abolishing of crypto. Rather they are accepting the world of digital currency and would help in shaping the crypto-assets market. Bitcoin's value has become very volatile since most of the economies of the world are yet to regulate and accept it as a trading instrument.
DISCLAIMER:
I am just a student who is still getting to know the financial market. Hence, do not rely on my information for any investment or other purposes.
Very nice
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