Future of Cryptocurrency in India: The Dark Side of India’s Growing Concerns in 2024

What is Crypto Currency?

In this article, we will discuss various aspects related to crypto currencies and Future of Cryptocurrency in India. The Word Crypto Currency is made up of 2 words, “Crypto” a Latin word which means “hidden” and the Currency means “Currency“. Crypto Currency is a digital or virtual currency. Generally, all the currency of the world is issued and control by its central government or central bank of a country. But there is no control of any country’s government or bank on crypto currency, nor can any institution decide the price of crypto currency. This currency is completely controlled by the market.

It is a fictitious or virtual currency and only online transactions can be done through this currency. It cannot be in our pocket in physical form like a coin or a note. Bitcoin, Ether, Litecoin (LTC), Dogecoin, Faircoin (FAIR), Dash (DASH), Peercoin (PPC), Ripple (XRP), Litecoin, Shib (INU) and Monero are some of the popular cryptos Currency.

Future of Cryptocurrency in India: Examples of Crypto Currencies

Bitcoin

Bitcoin was established in the year 2009. It is the first and most famous crypto currency.

Ethereum

The second most well-liked digital currency is Ether (ETH) or Ethereum. It runs on a blockchain technology.

Litecoin

Litecoin is also one of the popular crypto currencies. innovation, fast payment and transaction process is known for litecoin.

Ripple

Ripple is a distributed ledger system that was established in 2012. Ripple is used to track different types of transactions, not just crypto currencies. Ripple’s developer company works with different banks and financial institutions.

“Altcoins” considered as Non-Bitcoin crypto currencies

future of Cryptocurrency in India

Future of Cryptocurrency in India: What is Blockchain?

A Blockchain is a type of digital public “Ledger” “Bahi-Khata”. Buying and selling of crypto currency is done through this digital ledger account. Every transaction of crypto currency is recorded in this public ledger. The specialty of blockchain technology is that once a transaction is recorded here, it can neither be removed from here nor can any change be made in it. Blockchain technology is used through software.

Instead of securing all information in a blockchain transaction in one place, it is stored simultaneously across multiple computers that can be accessed by anyone. Through this, the digital currency used in the transaction is encrypted ie coded, which is managed through a decentralized system, that is, it is not controlled by any government or institution but by the market.

Buying and selling of currency done through this is called crypto-mining because a digital database of every information has to be created. Those by whom this mining is done are called ‘Miners‘. Buying and selling of crypto currency has become very easy today. There are many applications through which crypto currency can be bought and sold.

How to Invest In Cryptocurrency In India

Follow these steps to buy crypto currency

Step 1: Platform selection

First of all, you have to decide which platform you want to choose. either you choose traditional broker or a cryptocurrency exchange. Traditional Brokers: Nowadays many online brokers offer the option to buy or sell cryptocurrencies. Bonds, Stocks and other financial assets along with cryptocurrencies are being offered by these brokers. Cryptocurrency Exchange: Exchange is also a good option to buy cryptocurrency. They offer cryptocurrency, wallet storage, interest account options. Review the charges and the features before getting into them.

Step 2: Fund the account

After choosing platform, you need to fund your account to start trading. Cryptocurrencies can be bought on most crypto exchanges using debit cards, credit cards, regular currencies such as US dollars, British pounds or euros, but buying with a credit card is risky, plus not all exchanges accept credit cards. Cryptocurrencies can also be bought by transfer and wire transfer.

Step 3: Placing Order

After funding the account, you have to place an order for cryptocurrencies on the web or mobile platform of the broker or exchange. Along with this, users can also invest in crypto currency through fintech apps such as PayPal, Cash App, and Venmo. crypto currency can be buy or sell through these apps.

How to store Cryptocurrency?

After buying cryptocurrency, its safely and security from hackers or thieves matters the most. Crypto Wallets are being used to store crypto that are physical devices and online stores. The two wallets types are hot wallets and cold wallets.

Hot Wallet Storage: Online software is used to store cryptocurrencies in hot wallets. For this, users are not charged any kind of charge.

Cold wallet storage: In this, offline electronic devices are used to store cryptocurrencies. Users have to pay for this wallet.

Advantages and disadvantages of crypto currency

 Advantages of crypto currency:

 The role of a bank or any other intermediary is not required for the transaction of crypto currency, so the exchange done through it is cheap (as there is no additional charge on it) and fast.

  • No need for identification card. So it is easy for everyone to do transaction of crypto currency.
  • Unlimited Transactions with the help of crypto wallet.
  • No restriction of amount that can be paid to anyone.

Disadvantages of crypto currency:

  • Price Volatility, high energy/electricity consumption for ‘mining’, and their use in criminal activities.
  • Due to the unregulated crypto market, the possibility of money laundering and ‘terror funding’ remains.
  • Due to the absence of any identity card or document, the personal information of the people remains confidential and it can also be misused.
  • Some people hide their source of income, to receive illegal funds, and even to buy and sell narcotics/drugs online.
  • Difficult to protect from ‘hackers’ (cyber criminals). Cyber security is one of the biggest challenges being online.
  • Crypto currency is not controlled by any institution like a bank, so we do not get guarantees in it.
  • If a user loses the confidential information of his crypto wallet or his account is hacked, it is not possible to get it back.
  • Due to non-recognition of crypto currency in every country, it is not accepted everywhere.
Future of Cryptocurrency in India: Is Cryptocurrency in india Legal: What is India’s Stand?

Future of Crptocurrency in India is depends on various aspects. Governments of many countries of the world, including India, view crypto currency with suspicion and consider it a threat to traditional currency and even government sovereignty. The Government of India had constituted a committee on this issue in the year 2017. This committee had proposed a ban on crypto currency. Based on the suggestions of the committee, in 2019, the Crypto Currency Ban and Official Digital Currency Regulation Bill (Banning of Cryptocurrency & Regulation of Official Digital Currency Bill – 2019) was presented by the Ministry of Finance, Government of India.

According to this bill, trading and storage of all types of crypto currency in the country will be prohibited and illegal. Trading in cryptocurrency is punishable with imprisonment of up to 10 years and fine/penalty (three times the profit earned by the convicted person or the loss caused by the financial disturbance (up to Rs 25 crore) by way of fine). The Reserve Bank (RBI) had also banned banks from crypto currency transactions. But that order of RBI was repealed by the Supreme Court in 2020. The current situation is that there is no regulation on crypto currency transactions in India. Read More

Frequently Asked Questions on Future of Cryptocurrency in India

Is Crypto Currency is legal in India?

Not Regulated by any Central Authority, it comes under the AML Guidelines (Anti Money Laundering).

Does Every Country Accepts Crypto?

No, it is not accepted everywhere.

 

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