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.
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