What is a Cryptocurrency? Why Complete Ban on Cryptocurrency in India?
Cryptocurrency can also be called digital money. The cryptocurrency system, a branch of digital money transfer, is practiced in various countries around the world. Cryptocurrency is also traded in India. But, not everyone recognizes this as there are some glitches in it.
In a store we buy goods. We give it a 500 rupee note. The shopkeeper did not have the retailer to pay the rest of the money to go for the goods we bought. In that case he will pay the rest of the money in cryptocurrency.
Cryptocurrency is not money. That’s digital money. It cannot be seen or touched. Specific numbers and secret codes for digital money will be provided to us via the website. We can convert this money into cash by giving it to the same shopkeeper or to other stores that exchange cryptocurrencies or buy other products. This is the cryptocurrency.
How to use cryptocurrency?
To use cryptocurrency we must first go to the corresponding page on the website and open an account. That’s normal. If we cannot get started then there are agencies for this. You can go to them and start an account. A signature will be obtained digitally from us. Through it you can make cryptocurrency transactions.
This cryptocurrency is not created by any legal entity. Someone is creating faceless people. It runs on Black Chain Network technology. There are currently many types of cryptocurrencies. The ‘bitcoin’ that is popular now is also one of the cryptocurrency types. Similarly, more than 2,000 cryptocurrencies are in circulation, including Ethereum, Tron, Toze, Shiba, Light Coin and Rip. Normally the money we have on hand will always be the same value.
If we have 100 rupees, its value is always 100 rupees. But the value of a cryptocurrency is not the same. The value of a cryptocurrency will rise or fall based on its demand and high trading volume. That is, its value is as volatile as the price of the stock in the stock market.
Cryptocurrency money cannot be hacked or swindled. They have released it with security features. We can store our cryptocurrency money in an internet digital locker. No one can touch it.
Various types of crypto
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Zcash (ZEC)
- Stellar Lumen (XLM)
- Chainlink (LINK)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
At present the price of a Bitcoin (BTC) is Rs. 47 lakh 900. Similarly, the price of an Ethereum (ETH) coin is Rs. 3 lakh 41 thousand. Each cryptocurrency will similarly vary in the model suitable for trading. As the value of the cryptocurrency fluctuates we can use these to make a profit just like the stock market. So many people are now trading cryptocurrency for money.
Ban on Cryptocurrency in India
Now there is a major reason for the federal government to bring in legislation to ban the use of cryptocurrency. The cryptocurrency is not recognized by the Federal Reserve or the central banks of other countries, so it is thought that fraud may occur later.
The federal government will not take action to ban cryptocurrency completely in India, and in response, the federal government is expected to introduce a new bill in the coming winter session of parliament to regulate cryptocurrency trading. Now many companies in India have started using these universally.
Why Indian government ban on cryptocurrency?
And many companies now use cryptocurrencies to avoid income tax and to avoid federal surveillance bills. Thus the tax due to the Central Government will not be available. These will also escape from its surveillance ring. That is why the federal government has decided to ban cryptocurrency. Money in circulation in a country is valid only in that country.