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What is Cryptocurrency: is it Ban in India|Government steps about crypto

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what is cryptocurrency

The cryptocurrency is known as Future Currency Which is used as a Digital Asset. In this article, I will Explain What Is cryptocurrency, the Type, and Future of Cryptocurrency, and what Government steps about crypto Like Bitcoin.

What is Cryptocurrency?

Cryptocurrency is the digital currency that is used as a Digital Asset. You can be used for this purchasing some products or services by using this currency through the Internet. Cryptography is the process that is used to create Cryptocurrencies. It is based on Peer-to-Peer Electronic System.

The world’s first cryptocurrency is Bitcoin. That was anyone can invest in, but now have many options to invest in Cryptocurrency. If we all talk about cryptocurrency, the first of them that is the famous Bitcoin.

It was first built and is also used for the most. Bitcoin has had a lot of controversies, but now bitcoin is at the top of cryptocurrencies today. Because of huge the growth of bitcoin, People think it’s profitable to invest in cryptocurrency.
Bitcoin

Top 5 type of Cryptocurrency


Here the list of profitable cryptocurrencies:

  • Bitcoin (BTC)

It’s not at all possible if we talk about Cryptocurrency and not Bitcoin. Because Bitcoin is the first Cryptocurrency in the world. Which was created by Satoshi Nakamoto in 2009. It is a digital currency used only for buying goods and services online.

This is a decentralized currency which means that the Government or any institution has no hands on it. However, its value has now increased considerably, which is now more than 40 Lacks(INR) and more than 55000 USD for 1 BTC. A fixed amount of Bitcoin is available in the world but demand is increasing day by day that’s why its price is so high.

  • Ethereum (ETH)

Ethereum is an open-source, decentralized blockchain-based Computing Platform. Its founder is named Vitalik Buterin. Its Crypto token is also called ‘Ether’. This platform helps its users to create digital tokens that can be used to use it on the currency.’

Recently only having a Hard Fork has divided Ethereum into two parts Ethereum (ETH) and Ethereum Classic (ETC). This is the second most famous Cryptocurrency after Bitcoin. Now in 2021, 1 Ethereum price is more than 1700 USD.

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  • Dogecoin (Doge)

The story of Dogecoin’s formation is quite interesting. It was compared to the dog for making bitcoin fun, which later took the form of a Cryptocurrency. Its founder’s name is Billy Markus. Like Litecoin, it also uses Scrypt Algorithm. Today Dogecoin is Worth Over $2 Billion and is accepted by many merchants all over the world. Mining is also much quicker than others.

  • Dash (DASH)

Its earlier names were XCoin and Darkcoin, Dash, which means ‘Digital’ and ‘Cash’. These are open-source, peer-to-peer cryptocurrencies just like Bitcoin. But it has more features than Bitcoin, such as ‘InstantSend’ and ‘PrivateSend’. Users in InstantSend can easily complete their transactions and transactions in Privatesend are completely safe where users’ privacy is given a lot of importance.

Dash uses a unique algorithm that uses the X11, which is typical of very small hardware that makes it compatible, allowing more people to mine their currency on their own. The X11 is a very energy-efficient algorithm, which consumes up to 30% less power than Scrypt. Now in 2021, 1 Dash price is more than 200 USD.

  • Litecoin (LTC)

Litecoin is also a decentralized peer-to-peer cryptocurrency that has been released under the MIT/X11 license by Charles Lee in October 2011. Who previously served as a Google Employee. Bitcoin has a huge hand behind its formation and a lot of its features are swinging from Bitcoin.

Litecoin’s block generation is 4 times less than bitcoin time. So transactions are completed very quickly. Contains the Scrypt algorithm for mining. Now in 2021, 1 Litecoin price is more than 190 USD.

 

If the Future is Cryptocurrency


  • Advantage 
  1. Since cryptocurrency is not under the control of any country or government, the economic situation or economic decisions of a country such as demonetization or depreciation of the domestic currency have no effect on it.
  2. While it takes more fees and time to transact globally through banks, transactions in cryptocurrencies are quick and very low in fees.
  3. It does not require any identity card etc. to transact, so the transaction between any two persons remains secret.
  • Disadvantage 
  1. The information of the persons dealing in cryptocurrencies is completely confidential, so it is also used for illegal activities such as selling one’s personal data, ransom, trading of illegal goods and human trafficking, etc.
  2. It requires extreme caution in its use. In case the cryptocurrency is transferred to the wrong address, it cannot be retrieved nor is it possible to identify the person.
  3. Cryptocurrency transactions require a large amount of computer capacity which is one of the main causes of energy wastage.

How to get cryptocurrency:


Two ways to get Cryptocurrency.

  • 1st Way: The first way to get Cryptocurrency is You can buy it online from some website that provides it. Here the Some Websites: blockchain.com, Coinbase, Coinmama, CEX.io, Wazirx, etc.
  • 2nd Way: The Second way to get Bitcoin is Mining,  You can mine cryptocurrency at your home. So, you need a powerful Computer/machine for the main cryptocurrency. Most popular Crypto: Bitcoin, Ethereum (ETH), Litecoin (LTC), DASH (DASH), etc.

Government step about Cryptocurrency: Ban in India


For, now the government is preparing to introduce The Government of India announced the Union Budget for 2022–23 earlier today, with Finance Minister Nirmala Sitharaman bringing much-needed clarity for millions of crypto investors in India. The government has imposed a 30% fixed tax rate on all income generated through crypto trading while also aiming to introduce the Digital Rupee in 2022–23.

Further elaborating on the taxation model for such virtual currencies, the Finance Minister outlined that all crypto transfers above a certain monetary threshold will be liable for a 1% TDS deduction, which will help the authorities keep track of the movement of such currencies in the economy.

I hope, that I have given you complete information about what is a cryptocurrency and Government steps regarding Cryptocurrency: Ban in India  If you like this article, you can share and comment. So that we too have a chance to learn something from your ideas and improve something.

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2 Comments

2 Comments

  1. Susie Breckley

    April 30, 2021 at 4:00 pm

    Terrific article

  2. freenevony

    May 12, 2021 at 5:37 pm

    I agree with told all above.

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