Cryptocurrency- A digital Coin : Who does not know about money? Even children understand the importance of money. We all also know that every country has its own currency. Like the currency of India is rupee. And if someone goes abroad, that person uses the currency of that country. This shows that every country has its own different currency. Like Dollar in America, Pound in Britain, Euro in Europe etc. We can touch all these currencies. You can take it with you wherever you go. But do you know, there is another currency, which perhaps no one has heard of, it is called Bitcoin.
It is a crypto currency and digital payment system. You can’t touch it, but you can keep it with you. In a digital form, that is, you cannot keep this currency digitally in your pocket. This currency is the most valuable currency today. So, in this article you will learn about Digital Currency, what is Cryptocurrency, how many types are there, what is Bitcoin, what are its benefits.
Free Mobile Recharge
What is Cryptocurrency?
Cryptocurrency is made up of two words. The first is Crypto which is a Latin word. Which is derived from cryptography, which means hidden. And the second word is currency, which comes from Latin currentia, it means that this rupee is used for money. This currency is in a digital form, which is not like any coin or note whereas it is completely online.
It is generally used to purchase goods and services. It emerged with Bitcoin. It works as a “Peer to Peer Electronic” cash system. It can be used with the help of Internet. With its help, money can be kept hidden very easily. There is no need to go to any bank or other government institution to use it. Therefore, with the help of cryptocurrency, your money can be easily kept hidden.
Crypto currency allows to secure online payment. Which is denominated according to virtual ‘Token’. Which makes internal laser entries for the representation system. Cryptocurrency crypto defines different algorithms and cryptographic techniques.
Which protects some entries, such as, Elliptical curve Encryption, public-private pairs and Hashings Functions. A key feature of cryptocurrencies is that they are not issued by any central authority, which makes them theoretically immune from government interference or manipulation.
Who created Cryptocurrency
Many people say that Cryptocurrency was started by Satokshi Nakamoti in 2009. But this is not completely true, because earlier also countries and investors had worked on digital currency. For example, in 2000, Netherlands had linked cash to smartcard for filling petrol. Similarly, the US created electronic gold in 1996. This was gold that could not be kept, but could be used to buy other things. But it was banned in 2008.
Types of Cryptocurrency
The first Blockchain based Cryptocurrency was ‘Bitcoin’. Which still remains the most popular and valuable. Today there are thousands of alternative cryptocurrencies with different functions and specifications. Some of these are clones or forks of Bitcoin while others are new currencies. Bitcoin was launched in 2009 by an individual or group under the pseudonym of ‘Satokshi Nakamoto’.
If we look at today’s time, more than 1000 Cryptocurrencies are available in the market. But there are some of these which are used the most. Their names are as follows- Ether and Ethereum, Litecoin, Dash, Jedcash, Monero, Bitcoin, SiaCoin, Redcoin, SYScoin. Among all these coins, the one that has reached the highest heights is Bitcoin. So let us know about Bitcoin.
What is Bitcoin?
Bitcoin cryptocurrency is the first global decentralized currency, created for the digital world. It can be used anytime and anywhere. With its help, one person can send money to another person anywhere without the help of any third party or bank. That means you can send money from your Bitcoin wallet to someone else’s Bitcoin wallet. For this you have to pay only two and a half cents (i.e. 1 rupee 67 paise).
It is a kind of digital currency, which is created with the help of Niemann Electronic System. This is a very fast method of money transaction. This is a process between only two people, hence no third person is required in it. In this transaction, money comes to your Bitcoin Wallet in the form of codes. This is not a printed currency. It is prepared by the people only.
Bitcoin Value
5 years ago the price of one Bitcoin was Rs 6. But now its price is around Rs 45,000. In India, the price of one bitcoin in 2015 was Rs 14 thousand, in the year 2016 it increased to Rs 30 thousand and today its price is Rs 45,000. According to an estimate, it may increase to 6 lakhs next year.
What is Bitcoin Wallet
It is a kind of software program, inside which Bitcoins are stored. Strictly speaking, it is not kept anywhere. A Bitcoin has its own private number i.e. code, which is kept safe in the Bitcoin wallet. With its help we can easily take Bitcoin or give it to someone.
Use of Bitcoin
Actually, there are such countries where it is not decided how much money can be sent out of the country and how much can be imported. Actually Bitcoin is suitable for such countries where there is no capital control. When there is a need to ask for more money, then they convert it back into money by buying Bitcoin and sending it out of the country. It is used by rich people so that they can hide their wealth.
Earlier such people used to transfer money with the help of Swiss Bank and convert black money into white money, but now it is difficult to deposit money there. Because all this comes under the radar of the administration. But this is not the case with bitcoin, because it is digital, and people who used to deposit money can buy Bitcoin from it. There is no checking fee for using it, the transactions done through it are not face to face, nor does it require any card.
Benefits of Bitcoin –
Crypto currency is not controlled by any authority, due to which there is no possibility of danger like demonetization and decrease in the value of currency. Due to Bitcoin being digital, there is less fraud in it and if someone has more money then they can invest in Bitcoin, because it does not require any third party or lawyer. There are no transaction fees for Bitcoin. In today’s era, everyone has the facility of Internet, Laptop or mobile, due to which it is very easy to use Bitcoin Wallet.
Disadvantages of Bitcoin –
Since Bitcoin is digital, it is not visible to anyone, hence people can use it for wrong purposes. Which can be risky. Like supplying drugs or buying weapons. It does not have any kind of authority or government, that is why the price of Bitcoin keeps going up and down. Another disadvantage of this is that if someone hacks your bank account, your Bitcoin can be lost, due to which you will suffer a huge loss.
Confusion Spread on Crypto
As soon as 30 percent tax on virtual assets was announced, many people assumed that whatever came under the ambit of tax became legal. However, it is not like that. According to the Income Tax Act, no matter where your income comes from, the government collects tax on it. This does not guarantee that your income is legal.
It is clear in the Income Tax provision that wherever you earn money from, you will be liable to pay tax on it as per the tax slab. Whether the income source is legal or illegal. The Supreme Court had also given a similar decision in the case of smuggling business a long time ago. Therefore, it is not correct to call the tax levied on such assets legal.
