New Delhi: A cryptocurrency is a form of payment that can be used to exchange products and services online. Using digital files as money, they are created using the same method as cryptography, which is the science of hiding information. Also Read – Thalapathy Vijay Birthday: Know Net Worth, Luxury Cars, Income, Salary of Tamil Actor
Who invented Cryptocurrency?
Majority consider Bitcoin to be the original cryptocurrency. In 2009, it was invented by a programmer/s under the pseudonym Satoshi Nakamoto. They were the first to implement a blockchain currency. Also Read – Sharad Pawar to Host Meeting With Oppn Leaders Today | What we Know so Far
Why is Cryptocurrency so popular?
The notion of cryptocurrency is spreading everywhere solely because the currency is fully digital. The transactions are private, so they aren’t privy to any organization or government body (decentralized control). Coupled with the ease of conducting financial actions through the click of a button makes it an easy choice for millennials. The limited quantity of cryptocurrencies is part of the appeal and new-found rage of this technology. Also Read – South African Players Aligned With New Skipper’s Ideas: Mark Boucher
Is Cryptocurrency a good investment?
There are always two sides to the story – some say investing in crypto assets is risky, but others say it is profitable and one of the hottest commodities.
Starting with the disadvantages, cryptocurrency exchanges are extremely vulnerable to becoming targets of criminal activity such as security breaches, which can lead to substantial losses for investors. Even though it is based on cutting-edge technology, unfortunately it is still being developed and is not yet extensively proven to be triumphant in real-world scenarios.
On the other hand, this industry is consistently growing stronger. Owning or investing in some cryptocurrency can increase your portfolio’s diversification. Being a digital currency, it be used for transactions all around the world without having to pay a large amount of money or fees. Along with this, it could potentially revolutionize the banking and financial services industries.
What is the Legal Status of Cryptocurrencies in India?
Cryptocurrencies are not illegal in India. The RBI in a notification in 2018 had asked banks to not accept cryptocurrencies as legal tender but in March 2020, India’s Supreme Court allowed the use of virtual currencies and cryptocurrencies.
Following the Supreme Court order, the RBI had withdrawn its earlier notification banning use. “In view of the order of the Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from,” the RBI said in a notification to banks.
“It has come to our attention through media reports that certain banks and regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular dated April 8, 2018,” the RBI said. “Such references to the RBI circular by banks and regulated entities are not in order as this circular was set aside by the Supreme Court on March 4, 2020 in the matter of writ petition (Civil) No.528 of 2018 (Internet and Mobile Association of India vs Reserve Bank of India),” the RBI said. The RBI new notification comes as a huge relief to people who were trading in cryptocurrencies like Bitcoin or Ethereum.
Reports say the Reserve Bank of India is developing its virtual currency.
How can one buy/invest in Cryptocurrencies?
To invest in or buy cryptocurrencies, you’ll need a digital wallet that can store your currency. Normally, one should create an account on an exchange, and choose the digital wallet where cryptocurrencies would be credited post transfer of real money. Today, some of the most popular cryptocurrencies are Bitcoin, Dogecoin, Ethereum, XRP, Tether, and Cardano.
Due to the irregularity involved, investors should remain cautious, patient and acknowledge the evolving trends. This is because for any cryptocurrency project, achieving widespread functioning is necessary for it to be a long-term success.
(Author, Khushi Kothari is a student of American School of Bombay. She is doing her internship with India.Com, part of Zee Digital)
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