What is Crypto currency? Why Indian Government Is Planning To Ban Bitcoin? Is Bitcoin A Good Investment?
Crypto currency is trending all over the World. The tweets, the hashtags and social media sentiments are surging the price of Bitcoin and alt coins. Shocking is, a Bitcoin gave almost 1600% returns last year. Bitcoin's market value reached $1 Trillion first time. Just in, Bitcoin price were at $58,000. In India it is almost ₹34,93,613.09 (As of 26 Feb, 2021).
Also Read : The Global Economy and Nature
(Image From - unsplash.com)
(Image From - unsplash.com)
(Image From - unsplash.com)
Recently, beside a Bitcoin there are several new crypto currencies are launched. Which are Dogecoin, Libra, Ethereum, Binance coin, Cardano, Tether, etc. Among these various cryptos, the highest possible return can be achieved from a Bitcoin. Also, some people are noting that a Bitcoin is overhyped and one should not invest in it.
There are $21 Billion Bitcoins are available. No one can over print or make it as they want.
What is Crypto currency?
A crypto currency is something which can be exchanged via online for buying or getting goods and services. They are also called Digital Currency. There are several companies which have issued and made their own digital currency, for example : Facebook Inc. has issued Libra. They are also called a Token.
Till date, there are at least 6400+ crypto currencies are available. You can find the details on CoinMarketCap.com which is a market research and finance website. The crypto currencies are issued via ICO or Initial Coin Offering.
If we talk about particular Bitcoin, it is the most famous and valuable asset which is aimed to provide good returns. There are several chances of a sudden growth and sudden drop in a price of it. The public sentiments and market conditions are also valuable for it.
A reason for sudden hype in the price of Bitcoin is that Elon Musk has invested $1.6 Billion in it. Last year Bitcoin surge from $7000 to $40,000. Last year Warren Buffet had invested in Bitcoin. After that, it was become an Asset class.
Crypto Currency vs Paper Currency
A paper currency has a central authority which controls the supply and circulation which is most probably the Government itself and we do trust on it. So, we need some limited and decentralized currency. Now, to solve these both problems we have Crypto currencies.
Crypto currency is just like a digital money which can be stored in our computer and internet. You also can exchange it via internet itself. There is no need of any bank or intermediate. Bitcoin works on a blockchain technology so there is one central ledger in which it maintains accounts and transactions.
From Where Bitcoin Came?
New Bitcoins are generated via comparative and decentralized process called as Mining. Mining for Bitcoin is like digital version of mining a Gold. Minors are usually processing transactions and are getting rewarded by a particular network in Bitcoin. These minors use powerful computers to compete with each other to win Bitcoin by solving math puzzles and it gets harder as you pass it or solve it.
The amount of Bitcoin won by minors can decreased over time. That is why a lot of people hoard a Bitcoin. The more people will hoard a Bitcoin, the value of it will increase at particular rate. Thus, more people are motivated to invest in it. This is how the cycle of a Bitcoin works.
How Can You Buy A Bitcoin?
You can get a Bitcoin if you know the mining process and a knowledge required for it. Generally, people do not know the mining process to earn or to collect a Bitcoin. So, we can buy a Bitcoin from the people who are hoarding it.
If you hold a Bitcoin, you will have a Private Key and Public Key. A Public Key is like an email address. You can share it to the others so that they can give you a Bitcoin and easy to transact. A Private Key is your Email and Password. You should not give away your Private Key to anyone ever. Also, you can not do the forgot password things over here as it is related to the finance sector.
So, if you lose your Private Key, then it means you may also lose your all Bitcoins.
Advantages of Crypto currencies :-
- It is decentralized so that nobody can control it.
- There is no transaction restriction. Which means it is available to everyone with any nationality.
- Secured. Which means it provides an unalterable record of every transaction made on the network.
- Privacy. The transactions are anonymous.
- It is limited. So that no one can just over print the currency as per surge. There will be only 21 Billion Bitcoins.
This reasons are telling us that why the people call it a Digital gold as it is a finite amount.
Why The Government of India Is Planning To Ban Crypto Currencies?
If you have invested or someone you know have invested in a Bitcoin or in any crypto currency, then it is at stake, India's National Security and Monitoring Policy also is at stake. India's participation in the future market and technology is at stake. Why? Because the Indian government is planning to ban Crypto currency.
According to the government, India will make its own Crypto currency with the help of RBI (Reserve Bank of India). The GOI thinks that a Bitcoin can bring financial instability. People's money would be at risk if Bitcoin permitted for too long. The money invested in a Bitcoin will go out of the nation and the government will suffer to make regularities.
There are other several reasons which is ensuring an appropriate ban on Bitcoin.
Bitcoin came in 2009 and it was revolutionary itself. 2015 brought a game changer called Ethereum. On which you can do coding and can buy and send money. It allows you to code online for a money. Bitcoin processed more transaction in 2020, which was more than PayPal.
Investors on Bitcoin
Elon Musk - Bitcoin is inevitable.
International Monetary Fund - Bitcoin can be a next step in the evolution of money.
The World Bank - Bitcoin is changing the way that production and commerce are organized.
Former U.S.A Treasure Secretary - Bitcoin is here to stay.
Peter Thiel, Elon Musk along with Twitter CEO and Master Card are on Crypto band wagon.
Why Should Indian Government Not Ban Crypto Currencies?
- It gives protection against de-plat forming. It means India can not be de plat formed. Bitcoin and Ethereum are decentralized platforms.
- Foreign Investments. Indian as well as entrepreneurs around the world supports Bitcoin. As it is a safe and secured, lot of business leaders and stock holders likes to invest in Bitcoin. It can also increase an FDI.
- Billions of crypto can be invested in India. It will push a demand for cryptos.
- Crypto enables the remote economy.
- India is a world leader in BPO and ITs. Crypto works as fast as the internet.
- India aims to be a world leader if it will not ban a Crypto currency.
- It strengthens our monetary policy.
- Deterring financial fraud.
- Technological Development.
- Foreign policy. Every country wants that they use their own currency at domestic level and there should be a common currency at International levels.
So, these could be a most favorable reasons to not ban a Crypto currency.
Binance Coin (BNB) is the stage's inside symbolic that is utilized to work with crypto exchanging on the Binance trade. The coin was dispatched during an underlying coin offering in July 2017. Binance offered 10%, or 20 million, BNB tokens to private supporters, 40%, or 80 million, tokens to the establishing group, and the excess half, or 100 million, to the different members through the ICO interaction. Practically a large portion of the assets raised during the ICO cycle was planned to be utilized for Binance marking and promoting, while around 33% were utilized to construct the Binance stage and perform important moves up to the Binance environment. Binance Coin runs and so forth Blockchain with ERC 20 norm, and has a cap of 200 million BNB tokens. As of Q1 2021, one BNB is worth around $650 and is the third most important blockchain-based token by market cap, at generally $3.6 billion.
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