The Future of Cryptocurrency

You must have heard this several times that cryptocurrency is future, and if we talk about our country then I must say that it is a very delicate topic and who knows what is going to happen in the near future but the thing is that the Indian government is not restructuring-friendly in this matter and it prohibits the transactions in crypto by just stating the risk of black money etc. Every new tech has some disadvantages but for the better good things are adapted and the system is improvised. This article will try to give you the best of information without bending towards any particular subject.

Cryptocurrencies are a form of online property or digital asset which is based on a network that is distributed across a large number of computers. This type of structure allows them to exist outside the control of governments and authorities. The word “cryptocurrency” is coined from the encryption techniques which are used to secure the network.

Blockchains, are used to make sure, the integrity of transactional data, that are an essential component of many cryptocurrencies. Many experts believe that blockchain and related technology will distort many industries, including finance and law.

On the one hand cryptocurrencies face a lot of criticism because of a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them but on the other hand they also have been praised for their portability, divisibility, inflation resistance, and transparency.

Cryptocurrency can become a good alternative for the countries which have weak economies. Because weak economy results in the fall of currency value. Then they have to pay more money to other countries for trade, services etc.

If we talk about recent news related to crypto then I must say the future here seems very promising one :-

  • Elon Musk, founder of SpaceX, recently announced that his company Tesla invested $1.5 billion in bitcoin and plans to start accepting the currency as payment.
  • Users of Apple Pay, Google Pay and Samsung Pay can now make transactions with cryptocurrency using BitPay.
  • Mastercard has indicated that it will begin supporting select cryptocurrencies on its payment network, while PayPal already allows its users to buy, sell and hold cryptocurrency.
  • Mastercard has indicated that it will begin supporting select cryptocurrencies on its payment network, while Pay pal already allows its users to buy, sell and hold cryptocurrency.
  • Social media giant Facebook continues to work on its blockchain-based payment system and cryptocurrency known as “Diem”.
  • The oldest bank in the United States, Bank of New York Mellon, recently announced that it will begin financing bitcoin and other digital currencies.
  • One of the oldest insurance companies in the US, Massachusetts Mutual Life Insurance, bought $100 million into bitcoin in December 2020.
  •  Deutsche Bank, which is the biggest bank in Germany, has already created a Deutsche Bank Digital Asset Custody prototype, “a fully integrated custody platform for institutional clients and their digital assets, providing seamless connectivity to the broader cryptocurrency ecosystem.

India has not yet opened Cryptocurrencies, mainly Bitcoin. There is a low chance of that to be open for these in near future. But sometimes they show slightest signs of improvement regarding Cryptocurrencies. India should have been one of the first countries to establish its reliability and trustworthiness as an alternative financial system. In a country with over 1.30 Billion people you always need to find a way to make lives better for the people.

Cryptocurrency- Earlier

In 2013, India announced Bitcoin as untrustworthy and labeled it as “Wild West Territory” where frauds and scams like Silk Road, market of drugs on dark-net are prevalent and where selfish greedy geeks conned innocent citizens into losing their money. The thing is that India at that time was not aware of its value but as the nation went through a change in its global financial and political situation, its stand regarding crypto changed. India became a suitable place to trade in bitcoin a few years later. The government could have just adapted to bitcoin and related cryptocurrencies, or maybe they could have just released their own cryptocurrency, instead the government had no interest in paying any attention to the matter. But what they did was, to prohibit transactions by stating the risk and regulations in investing in cryptocurrencies.

Cryptocurrency- The Present

During March this year, the Government of India stated that they would be banning the use of cryptocurrencies, but it was not confirmed whether crypto owners would be compensated for having to give up their assets in case the ban is imposed. If we talk about now then investing in cryptocurrencies is legal, but there is no regulatory framework for them. Exchanges are legal but still people are not allowed to use cryptocurrencies as a mode of payment for transactions.

There is no clarity regarding payment of taxes if we deal in crypto that too may be the reason of this, also The Reserve Bank of India has been a key player it has banned all banks and other financial institutions dealing in cryptocurrencies on 14th of January 2018. RBI stated that it has not given any license to any company to deal in cryptocurrencies and if they did they would have to exit from their positions.

There is huge popularity of bitcoin and dogecoin, there are a number of investors who are looking forward to invest into them . The Government is currently under the process of framing regulations and policies for cryptocurrency investments and being hopeful, with the progress of time, cryptocurrencies may be accepted as legal for certain transactions in our country.

Cryptocurrency- The Uncertain Future

As already mentioned in this article the future seems uncertain for now, but as many investors and traders and looing forward to invest into forms of digital asset we should remain optimist. Cryptocurrency is now used to make online purchases or even physical products and hence provides a great opportunity for business holders and companies to monetize various digital applications. Till now, more than 8 million people in India have used cryptocurrency and the numbers are likely to grow in the coming years as a result of upcoming economic reforms.

The fact that India is a great market for cryptocurrency such as Bitcoin has already been established and the Government of India seems to be ready to formulate a system for regulating cryptocurrency as part of the Indian economy. With so many companies and investors already dealing with and trading in cryptocurrency and the countless opportunities still remaining to be explored, little help and support from the government can turn cryptocurrency into a major asset for the Indian market in the coming future.

Whatever is going to happen in future it can be said that making cryptocurrency legal in India can play a major role in putting India among the front liner countries in the trade game.

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