What is cryptocurrency? Know about it in detail

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What is cryptocurrency? Know about it in detail

What is cryptocurrency? Know about it in detail
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What is cryptocurrency, friends, we have always been hearing about cryptocurrency in today’s time, and its importance is also increasing, in today’s time cryptocurrency cannot be ignored, the eyes of the world are on it, And they are also making their own plan, today we know about it through this blog of ours.

The first name that comes to mind when it comes to cryptocurrency is bitcoin, the origin of bitcoin is unclear, such as who founded it. An individual or a group of people, known by the identity of Satoshi Nakamoto, is said to have introduced the concept of this accounting system after the 2008 financial crisis.

Before the introduction of bitcoin in 2008, the total market for all cryptocurrencies was only $20 billion in 2017 which grew to $289 billion over the next three years and then peaked at $2.9 trillion in November 2021. Last three months There has been a sharp decline in this once again. Read complete notes of Indian economy in Hindi .

What is cryptocurrency?

Cryptocurrency, sometimes called crypto-currency or crypto, is a form of currency that exists digitally or virtually and uses cryptography to secure transactions. There is no authority to keep transaction records and issue new units or regulate it, instead it uses a decentralized system. It is backed by a decentralized peer-to-peer network called a blockchain.

What is Blockchain Technology?

Blockchain technology ensures that all transactions in cryptocurrencies are recorded in a public financial transaction database.
Bitcoin, Ethereum, Ripple are some notable examples of cryptocurrencies. Blockchain takes its name from a digital database or ledger where information is stored in the form of “blocks” which together form a “chain”.

It offers a unique combination of permanent record-keeping, real-time transactions, transparency and auditability. An exact copy of the blockchain is available to each of the many computers or users that are linked together in a network. Any new information added or changed through the new block is verified and approved by more than half of the total users.

What is the usefulness of blockchain technology?

Blockchain technology can facilitate innovations in many processes and applications that require data management, storage, retrieval, security of vast and critical information. These include – management of information related to financial transactions (as in the case of cryptocurrencies), electoral voting, medical records, educational lessons, property ownership records and professional testimonials. A decentralized framework like a blockchain makes the system and the information stored in it fraud-proof, transparent and reliable.

What is the current status of crypto in India?

The Union Budget 2022-2023 also proposes to introduce a digital currency in the coming financial year. There is currently no legislature covering cryptocurrencies in India, although owning cryptocurrencies is no longer illegal. Now a 30% tax on income from virtual assets was announced. China has declared all cryptocurrency transactions illegal and effectively banned outright, while El Salvador allows bitcoin as legal tender.

  • Since crypto is not a legal tender, it should be treated as a separate category, so the government needs a separate regulation for crypto.
  • According to RBI, if people start treating crypto as currency, there will be an opportunity for peer-to-peer lending which clearly requires regulation.
  • Regulation is necessary to prevent serious problems and ensure that cryptocurrencies are not misused, as well as to protect investors from extreme market volatility and potential scams.
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