Crypto means “secured” and “Currency” means a legal tender with which one can make the payments. It is a digital form of currency and not in a physical mode
People use the cryptocurrencies to make the payment, it is a good asset to invest as well. There are many types of cryptocurrencies like Bitcoin, Ethereum, Litecoin, EOS, etc. But one which is in great form is Bitcoin. There are approximately 21 million bitcoins only. The demand and supply determines the rates of bitcoin.
For the purpose of making the payment, the BLOCK CHAIN TECHNOLOGY is used. It is very safe, secure also it is decentralized in nature. Each block, here, contains information about the transaction. Each transaction is secured with strong encryption. Each block contains information about each other, so if any change is to be made in one block, the approval has to be taken from every other block. That is why hacking becomes really difficult. Thus, making the technology secure and trustworthy. Super computers are used in the blockchain technology.
Under the cryptocurrency, there is no 3rd party involvement like banks for making the payment. One of the strong features is that there is no government interruption. Hence, making it decentralized. The processing fee charged by the blockchain technology is also very minimal in comparison with banks.
As there are many positive points about the crypto, there are some negative points as well. Because of its decentralized nature, there is no proper monitoring authority, no government regulation. Thus, making it a gateway for illegitimate transactions and tax evasion.
Nowadays, every nation is worried about the use of cryptocurrency for illicit transactions. A need for proper management or monitoring authority emerges.
China has already put a ban on cryptocurrency. It has introduced its own centralized Digital currency. A country “El Salvador” is the first country to declare cryptocurrency as a legal tender.
Where, because of the decentralized nature, cryptocurrency is considered as a "Trust based system for sending money." There comes a contrary view of a New York based professor, he says “it is a Pseudo asset” which means false asset. It is being inflated by massive input of money and is just an artificial raising of Bitcoin rates.
RBI, in 2018, imposed a ban on cryptocurrency, later in 2020 the supreme court ordered the RBI to lift the ban and advised the RBI and the government to find measures to limit the illicit use of cryptocurrency and not restrict the people’s right to invest in the cryptocurrency.
In the upcoming parliament session, the government is all set to introduce "The cryptocurrency and regulation of digital currency bill of 2021." The purpose is to prohibit the private cryptocurrencies, but the government would reduce and promote the use of blockchain technology in sectors like Education, Heath, etc.
Prime minister Of India, in an interview, said to remove the illegitimate use of the cryptocurrency. All the European countries, Asian countries, the US should come together and find ways to turn the disadvantage into advantage.
Cryptocurrency, altogether, is a new concept. The youth must understand its meaning, functioning and the blockchain technology. However, a proper monetary authority must be introduced to put down the inappropriate use of the cryptocurrency.
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