Cryptocurrencies and Bitcoin

Cryptocurrencies and Bitcoin


Cryptocurrencies or Virtual currency?

1. Cryptocurrency is digital currency based on principle of cryptography.
2. It is secured medium of exchange without any central controlling authority.
3. It used cryptographic encryption method to protect from any hacking of the transaction


What is Bitcoin?

1. Bitcoin is the first decentralized cryptocurrency. 
2. It was developed in 2009 by developer Satoshi Nakamoto.
3. Payment transactions records, history are recorded in public ledger

Challenges with Bitcoins?

1.Hacking: various reports have mentioned about hacking attacks at several exchanges.
2. Illegal use: possible in human trafficking, drug dealing & other illegal activities.
3. Volatility: Recent volatility in The Bitcoin market, makes its an too much risky investment.
4. Acceptability: Not widely accepted yet. 


Status of Bitcoins across world:

                A. It varies across the world. Some countries like Japan have recognised Bitcoin exchanges as legal.

Status in India:

1. India accounts for more than 11% of global cryptocurrency trade. 
2. India has repeatedly warned the public against use of cryptocurrencies, but not banned explicitly.
3. Various platforms like ZebPay, CoinDelta etc trade in Bitcoins.
4. View of Reserve bank of India RBI:


                 A. It has warned user, traders about potential risk associated with virtual currencies (VCs) including Bitcoins.

                 B. It has not given any licence/authorisation to any entity/company to deal with Bitcoin or any VC”.


5. View of Government of India:


                A. Finance ministry has clarified that it does not consider cryptocurrencies to be legal tender. 


Thank You To All My Reader

Related Post





5. JDK 8