After America and UK, China started taking action against cryptocurrency. China is banning cryptocurrency mining, which paralyzed an industry that accounts for over half of global bitcoin production. After the announcement of China, the price of Bitcoin fell. China said that the institutes and payment companies were banned from providing services related to cryptocurrency transactions. Let’s get to know about cryptocurrency.
What Is A Cryptocurrency?
Cryptocurrency is a digital currency that can be used to buy goods and services. It uses an online ledger with strong cryptography to secure online transactions. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the goods or services that the company provides. You will need to exchange real currency for cryptocurrency to access the goods or services.
Cryptocurrency work using a technology called the blockchain.
Now The Question Is, What Is This Blockchain?
Blockchain is a decentralized technology spread across many computers that manage and record transactions. Part of the appeal of this technology is its security.
Is Cryptocurrency A Good Investment?
There are always two sides to the story, and there is always a risk involved. Some say investing in crypto assets is risky, but others say it is profitable and one of the hottest commodities.
Let’s Talk About The Disadvantages
Cryptocurrency exchanges are extremely vulnerable to becoming targets of criminal activity such as security breaches. Even though it is based on cutting-edge- technology, unfortunately, it is still being developed and is still not yet proven to be triumphant in real-world scenarios.
Let’s Talk About The Advantages
This industry is consistently growing stronger. Owning or investing in some cryptocurrencies can be profitable. Being a digital currency, it is used for transactions worldwide without having to pay a large amount of money.
What Is The Legal State Of Cryptocurrency In India?
Cryptocurrency in India is booming, the market has been thriving, and retail investors are adding to the fire with their enthusiasm. Cryptocurrencies are not illegal in India. Anyone can buy, sell, and trade cryptocurrencies. The RBI, in a notification in 2018, had asked banks not to accept cryptocurrencies as legal tender, but in March 2020, India’s Supreme Court allowed the use of virtual currencies and cryptocurrencies. With the Supreme Court order, the RBI had withdrawn its earlier notification.
Cryptocurrencies are not illegal in India but are unregulated. This unregulated part is bothering the government. While larger banks like State Bank Of India, HDFC Bank, Axis Bank, and ICICI Bank continue to be reluctant, some smaller banks such as IDFC Bank had started offering their services to some exchanges.
How Can You Invest In Cryptocurrency?
To invest or to buy cryptocurrencies, you will need a digital wallet that can store your currency. Normally, one should create an account or choose the digital wallet where cryptocurrencies would be credited post transfer of real money.
The customers should remain cautious, patient and acknowledge the evolving trends due to the irregularities involved. This is because for any cryptocurrency project, achieving widespread functioning is necessary for it to be a long-term success.
What are your thoughts on cryptocurrencies? Let us know in the comment section below.