A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.
Beginning of cryptocurrency
The beginning of cryptocurrency is reported in the year 2009. Its beginning is considered to be from bitcoin itself. It is a Japanese currency and it was started by an engineer named Satoshi Nakamoto from Japan. Initially, it was not so popular, but gradually its rates started climbing upwards. Then it went on to become successful. If seen, there are about 1000 types of cryptocurrency in the market from 2009 to the present time, which act as a peer to peer electronic systems.
This is why cryptocurrency or virtual currency
The reason behind saying the virtual currency is that this currency is like computer software. We cannot keep it in a bank, locker, house or pocket. It is also not a piece of paper or a metal coin. It is an electronic store only. If anyone has any cryptocurrency (like bitcoin), then he can sell like common currency. The government or any regulator has not given a license to issue bitcoin or any cryptocurrency to any agency, institution, company or market intermediary.
RBI imposed the ban in 2018
In 2018, the Reserve Bank of India (RBI) banned cryptocurrency. The Internet and Mobile Association of India, the organization of cryptocurrencies in India, challenged this ban and said that the Indian government has not banned cryptocurrencies, so they should be allowed to trade in it. He said that the Reserve Bank did not have the right to give such an order on its behalf without asking the government or taking a decision.
Supreme Court lifts ban on cryptocurrencies
<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>Supreme Court allows the petitions challenging the Reserve Bank of India (RBI) 2018 circular that barred banks from trading in cryptocurrencies. <a href=”https://t.co/uflSzQTl9G”>pic.twitter.com/uflSzQTl9G</a></p>— ANI (@ANI) <a href=”https://twitter.com/ANI/status/1235074276895555584?ref_src=twsrc%5Etfw”>March 4, 2020</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>
Recently the Supreme Court has lifted the ban on the virtual currency from the RBI (Reserve Bank of India). In this way, India has now been allowed to trade in cryptocurrencies. A three-judge bench of the Supreme Court ruled in this case. The bench consisted of Justice Rohinton Fali Nariman, Justice R Ravindra Bhatt, Justice V Subrahmanyan. The Reserve Bank had banned such currencies which are called virtual.
What is the loss due to cryptocurrency?
Due to internet currency, it can be easily hacked. This currency is not controlled by any central agency, so there is no system to sink a customer’s money or resolve a dispute. Those who transact through bitcoin have to bear legal and financial risk. Actually, there is no proper system to solve the problems arising out of this currency. According to some media reports, cryptocurrency is also being used for illegal and terrorist activities.
Amitabh Bachchan has also bought cryptocurrency
Amitabh Bachchan had invested about $ 20,000 in a cryptocurrency and Bitcoin Skyrocket. Experts say that this Bollywood star earned almost 100 million dollars in just a few days. People associated with cryptocurrency say that still, the picture is not clear about cryptocurrency in the whole country. In such a situation, investing in such a big person increases trust among people. However, many people still doubt the trend of this currency.
Government has been warning about its dangers
The Finance Ministry had earlier also warned people against the threat of virtual currency, including bitcoin. At the same time, it is also considered as a kind of Ponzi scheme in which people invest money in the greed of huge profits, but later they also lose their origin. Actually, if the government does not issue this currency, then it cannot be controlled or regulated. Even if the currency or the coin is attached to its name, no central bank in the world (even if it is the Reserve Bank of India) has issued it.