“to improve is to change; to be perfect is to be changed often” is a famous quote written by Winston Churchill (former president of UK) and is best suited in currency development, from the barter system to the cryptocurrency world see the different types of currency viz coins, fiat money, plastic money, digital money and now cryptocurrency.
what is cryptocurrency
an unknown Satoshi Nakamoto is a name used by the presumed pseudonyms persons or persons published a paper in 2008, which detailed the bitcoin technology after that so many individuals, groups, and organizations developed their own cryptocurrency . “cryptocurrency is a purely digital currency that you can’t see or touch ” in India, like in most other countries, cryptocurrency is in a legally gray area and rbi has cautioned investors time to time. still, people trade with cryptocurrencies due to high returns. it was after the heydays of peer-2-peer when music was shared through networks without a controlling authority. bitcoin is essentially the same concept where there would be no central authority( like RBI) to control the currency. it does not follow traditional marketing principal like demand and supply but without the controlling factor, the value for a cryptocurrency is determined by what people are willing to pay for it and what you are ready to sell it for that is why the cryptocurrency is highly fluctuating.
cryptocurrency mining
for generating cryptocurrency is called mining. here I take the example of how bitcoin is generated. bitcoin is not printed like our normal currencies(fiat currency: it is regulated by the central bank), it is mined, we called it mined because as we know our natural resources are finite numbers like bitcoins are also infinite numbers. there will only ever be 21 million bitcoins in existence and these bitcoins are mined by a computer hardware algorithm it consumed electricity during the mining of bitcoins as a rewarding owner of computer get bitcoins further they trade bitcoin which rate determined by auto-generated demand and supply tools. there is no central authority to control its price that is by it is highly fluctuating.
India vs Cryptocurrencies
It is no secret that the government of India and investors have been engaged in a tug of war over crypto assets for a while now. RBI has tried to ban and issued many circulars to banks preventing them from dealing with virtual currencies even after the supreme court 3 bench jurisdiction struck down the RBI order under article 19(1)g of the Indian constitution which is a fundamental right to pursue a profession. Indian government always give trite argument regarding cryptocurrencies that is if it will be legal then indecent of black money, terror funding, tax evasion will be increased but they don’t think about if ban become law India would lose the billion-dollar opportunity and foreign direct investment like the industrial revolution, and this time we could not blame Britain. If we ban cryptocurrencies then this eventuality will only drive the market underground as Indians are known for their “jugad”.
