BENGALURU: The goal of Satoshi Nakamoto, the anonymous person who invented Bitcoin, the first decentralized digital currency, in 2008, is to create an electronic peer-to-peer cash system without intermediaries such as government financial systems or corporations. was. .
Nakamoto's white paper on Bitcoin states that transactions are tracked through the blockchain, a ledger similar to those used by financial institutions, but this ledger is distributed throughout the network and an exact replica of it is available to all participants. The difference is that it is maintained by someone and can be viewed by everyone. Protected by encryption measures.
The mythical Mr. Nakamoto guaranteed that it would never exceed 21 million Bitcoins.
According to a recently published secondary research paper on India's crypto market, Bitcoin, which was worth just over 1 cent at the time (2008), has now become the fastest asset to reach a market capitalization of $1 trillion. .
Around 15 million Indians have invested in cryptocurrencies worth Rs 1,500 crore, and there are 350 startups active in the blockchain and crypto space.
This is despite the fact that private cryptocurrencies are not regulated by the government and remain a gray area.
The Reserve Bank of India (RBI) has consistently raised red flags about private cryptocurrencies and the impact of this proliferating unregulated decentralized financial “assets” as a potential threat to the country’s financial stability. ing.
RBI Governor Shaktikanta Das said last month: “We have serious and significant concerns regarding cryptocurrencies and have conveyed them to the government.”
In February this year, he raised concerns about the issue.
In 2018, the RBI banned trading in cryptocurrencies, which was later overturned by the Supreme Court.
The Cryptocurrency and Official Digital Currency Regulation Bill 2021, which is expected to officially recognize “Central Bank Digital Currency” (CBDC) as a legal digital currency, is in its final stages.
Union Finance Minister Nirmala Sitharaman said on August 16 that the Union Cabinet will soon consider a bill to regulate virtual currencies and their emerging markets in India.
An inter-ministerial committee headed by former finance secretary Subhash Chandra Garg recently submitted a report seeking a ban on cryptocurrencies and RBI's approval of digital currencies.
Virtual currencies have also been flagged by law enforcement agencies for being used for illegal criminal activities such as money laundering, illicit financing, fraud, pyramid schemes, and drug trafficking.
China recently banned trading in cryptocurrencies, raising concerns about energy-intensive mining and national security.
However, the voices of change in the age of digitalization defy the conservative logic of the “safety” of financial products and allow people to make the most of their money as they see fit. We are asking the government to do so.
Cryptocurrency investors ensure that the underlying blockchain application makes all transactions verifiable and immutable.
Cryptocurrency has established itself globally as an alternative financial system that does not require centralized authority and helps users own money and make secure payments anonymously, largely due to the Know Your Customer Thanks to blockchain technology supported by (KYC) norms.
Dr. Akash Rajpal, 47, who insures investments in cryptocurrencies, said, “Governments should tax cryptocurrencies like they would tax goods or assets, but allow them to be traded.” “I look at this as a hedge and from a high risk reward angle. ” says Rajpal.
His first exposure to cryptocurrencies was at NASA's Singularity University in 2012, when cryptocurrencies were trading at $3. He “was interested in the underlying blockchain concept,” he added.
The National Association of Software and Services Companies (NASSCOM), in collaboration with WazirX, the country's largest cryptocurrency exchange, has published a just-released report titled “India's Cryptocurrency Industry” that provides insight into the current state of the Indian cryptocurrency market. revealed. Exponential rise.
“More and more young Indian investors are excited to explore new investment options and they are turning to cryptocurrencies like Bitcoin, Ethereum and Polygon to make investments that promise viable returns. ,” the report states.
One of the key predictions of the Nasscom report is that the cryptography industry will reach $241 million in India by 2030 and $2.3 billion globally by 2026.
According to the report, over 60% of Indian states have emerged as crypto adopters, and the industry, which has over 15 million retail investors, is increasingly attracting startups adopting crypto technology. It is said that there is
What makes cryptocurrencies attractive to risk-prone Gen Z is their transparency, decentralization, and volatility.
The value of cryptocurrencies is completely conceptual and depends on your beliefs. Prices follow the laws of supply and demand. Without regulatory controls and oversight, market manipulation can occur and create volatility.
“Crypto is all set to advance the Prime Minister's Digital India mission. In fact, the number of users in Tier-II and Tier-III cities grew by 2,648%, accounting for 55% of the total registrations on WazirX in 2021. %,” said Nischal Shetty, CEO, WazirX.
“Cryptocurrencies have immense potential to contribute to the $5 trillion economic vision, and we believe that cryptocurrencies will overcome financial barriers in rural India and create access to jobs in the coming years.” “Deaf,'' he added.
*Currently, there are over 12,000 cryptocurrencies.
*Virtual currency market capitalization: $1.96 trillion.
In 2017, a top-level interministerial committee was established to analyze issues related to virtual currencies and recommend appropriate measures.
The commission's 2019 report highlighted the risks of volatility, lack of regulation, technology-based risks such as phishing and Ponzi schemes, and illegal and criminal uses (such as terrorist financing and money laundering) by private parties. highlights some of the risks associated with decentralized cryptocurrencies such as:
In June this year, the Enforcement Directorate (ED) had issued a show-cause notice to WazirX under the Foreign Exchange Management Act, 1999 (FEMA) over virtual currency transactions worth Rs 2,790.74 crore.
The ED announced that it has launched an investigation into Chinese-funded illegal online gambling applications based on a money laundering investigation.
WazirX CEO Nischal Shetty said in a response that “we comply with all applicable laws.”
Bitcoin was first used to buy pizza
On May 22, 2010, Florida resident Laszlo Hanecz spent 10,000 Bitcoins to buy two pizzas at Papa John's.
At the time, his Bitcoin was worth just $40.
However, since cryptocurrencies did not exist in the commercial world, Hanyec reached out to the Bitcointalk community and openly traded Bitcoins with people who would buy these pizzas.
FYI: You don't need to buy the entire Bitcoin, which is worth around Rs 34 million.You can also purchase fractions.
Buy BTC (or any cryptocurrency) for as low as Rs.
Steps to take before investing in cryptocurrencies
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We will conduct thorough due diligence.
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Read the project's whitepaper and its use cases, roadmap, and progress.
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Check out the team's background and social media activity.
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Check to see if it is listed on a legitimate exchange.
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Invest based on your risk appetite.
Bitcoin as an investment option?
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Only a fixed supply of 21 million Bitcoins will be created.
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Digital assets that can be used by anyone around the world, regardless of country or organization.
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It is gradually emerging as an alternative asset class offering high-risk, high-return investment options.
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It is important to understand the high risk/high return aspects and invest based on your risk appetite.
