TOPIC RELATED CRYPTO-CURRENCY
Cryptocurrency & regulation of official digital currency bill 2021
What is cryptocurrency?
Cryptocurrency is a word made up of two words. Crypto is a Latin word derived from cryptography and which means hidden. Whereas currency also comes from Latin currentia, which is used for money-money. So cryptocurrency means hidden money. or secret money. Or Digital Rupee. Generally, cryptocurrency is a kind of digital money, which you cannot touch, but can keep. That is, it is a digital form of currency. It is not in your pocket in a solid form like a coin or paper currency. It happens completely online.
Understand it in simple language in such a way that every country has its own currency. Like India has Rupee, America has Dollar, Saudi Arabia has Riyal, England has Euro. Every country has its own currency. That is, such a money-system which is valid by a country and the people there can buy essential things using it. That is, which has any value, it is called currency.
Who made it and why?
The cryptocurrency was started by Satoshi Nakamoto in 2009, but it is not. Even before this, many investors or countries had worked on digital currency. The US created in 1996 prime electronic gold, gold that could not be kept but could be bought from other things. Although in 2008 it was banned. Similarly, in the year 2000, the Netherlands had linked cash to smart cards to fill petrol.
Bitcoin Most Expensive Virtual Currency
Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms. It stays online only in Digit form. There is no control of any country or government on this. Initially, it was declared illegal. But later due to the increasing popularity of Bitcoin, it has been legalized in many countries. Some countries are even bringing their own cryptocurrencies. Bitcoin is the most expensive virtual currency in the world.
How does Cryptocurrency work?
The popularity of cryptocurrency currencies has increased over the past few years. They are used through blockchain software. These digital currencies are encrypted ie coded. It is managed through a decentralized system. In this, each transaction is verified by digital signature. Its records are kept with the help of cryptography. Kshitij explains that buying through this is called Cryptocurrency Mining because every information has to be created digitally in the database. Those who do this mining are called miners.
To understand more in simple language, cryptocurrency is a virtual currency based on blockchain technology that is secured by cryptography. All this work is done through a powerful computer. Hackers and computer experts even say that it is almost impossible to copy its code.
How is the transaction done?
Whenever a transaction occurs in cryptocurrency, its information is recorded in the blockchain, that is, it is kept in a block. The work of security and encryption of this block is done by the miners. For this, they solve a cryptographic puzzle and find the appropriate Hash (a code) for the block.
What happens after finding the hash?
When a miner secures a block by finding a strong hash, it is added to the blockchain and verified by other nodes in the network. This process is called consensus.
What happens after consensus is reached?
If the consensus is reached, the block is confirmed to be secure. If it is found to be correct, then the crypto coin is given to the miner who secures it. It is a reward that is considered to be proof of work.
How many are like?
Now a question is also arising in the mind that if it is in digital form then how many types are there. If seen, there are more than 1800 cryptocurrencies available. Which you can also use apart from Bitcoin. There are Ethereum (ETH), Litecoin (LTC), Dogecoin, Faircoin (FAIR), Dash (DASH), Peercoin (PPC), Ripple (XRP).
How to trust cryptocurrencies?
People predicted that bitcoin would end around $180-$200. But with the mass adoption by the masses, it is gaining more trust. In the last quarter, about $700 million dollars were added to the market cap of bitcoin. However, the price has almost more than doubled since September 2020.
Many countries are going to bring cryptocurrencies
Although it has been debated that this bubble is in space and can burst at any time, it has become more valuable with the widespread acceptance and entry by new investors. It has to be trusted because many countries are now considering bringing their own cryptocurrencies. Earlier the government was contemplating banning it, but now it has seen softness.
Who are the Indian market players?
Bitcoin Wallet is very similar to our mobile wallet. Where we store our money and do transactions from it. WazirX, Unocoin, Zebpay are Indian companies that are in the business of bitcoin.
What did the founder of Wazirx say about cryptocurrencies?
Nischal Shetty, Founder and CEO of WazirX said in an interview, 'There is a lot of confusion about this in India right now. Because there is no regulation for this in the country. People get scared when they hear about it. In fact, a lot of things on the Internet are unregulated. E-commerce including ola, uber are also unregulated. The most important thing for investors is that if not regulated, the chances of fraud and scam increase.
How to buy and sell crypto?
The answer to this question has also become easy now. Due to the increasing popularity, there are now many crypto exchange platforms in the market. In such a situation, it is quite easy to buy and sell cryptocurrencies like Bitcoin and Dogecoin in the country. Popular platforms include WazirX, Zebpay, Coinswitch Kuber, and CoinDCX GO. Investors can also buy other cryptocurrencies such as Bitcoin, Dogecoin, and Ethereum from international platforms such as Coinbase and Binance.
The most important thing is that all these shopping platforms are open round the clock. The process of buying and selling cryptocurrencies is also quite easy. All you need to do is sign up on these platforms. , after completing your KYC process, money will have to be transferred to the wallet. After that, you will be able to shop.
What can be done with crypto?
The world's most expensive diamond has been bought with cryptocurrency in July. It has become clear from this that material things can also be bought from this in future. However, cryptocurrencies cannot be printed as paper currency and coins. But still, it has its value. With Cryptocurrency, you can buy, trade, and invest goods, but you cannot keep them in your vault. Nor can they be kept in the locker of the bank. Because it stays online in the form of Digits. It is also called digital money, virtual money, and electronic money. Its value is much more than the physical currency. Some of the top cryptocurrencies are worth thousands of times more than a dollar.
What is Cryptocurrency Market?
The place where the trading and trading of cryptocurrencies takes place. It is known by names like Cryptocurrency Exchange, Digital Currency Exchange (DCE), Coin Market and Crypto Market.
What is the future of crypto?
Two things are most important about Bitcoin - one, it is a digital currency used through the Internet and second, it is seen as an alternative to traditional currency. Cryptocurrencies are currently facing a crisis of trust. Governments view this with suspicion and consider it a threat to the traditional currency. Governments also feel that cryptocurrencies are part of a virtual world that is trying to break free from government control and is trying to run parallel to the real world.
What is the stand of the government?
The important thing is that the central government can completely ban cryptocurrency in the new proposed bill. In this regard, a committee was constituted by the Center in the year 2017. This committee had proposed to ban cryptocurrency. In such a situation, cryptocurrency experts believe that in the coming days, the government can take a decision to ban all cryptocurrencies.
India plans a law that will prohibit 'all private cryptocurrencies,' with 'certain exceptions'
India plans to introduce, evaluate and enforce a bill to prohibit “all private cryptocurrencies” in the country, according to a legislative agenda for the winter session.
The Indian government said Tuesday evening that the proposed law will permit “certain exceptions” to promote the underlying technology of cryptocurrency and its applications. The bill — called Cryptocurrency & Regulation of Official Digital Currency Bill 2021 — will also create a “facilitative framework” for the creation of the official digital currency for the country, the legislative agenda adds.
It’s worth pointing out that the description of the bill is identical to the one New Delhi listed for the previous parliamentary session earlier this year. The winter session of the parliament starts on November 29.
Lawmakers in India have for several quarters been discussing risks of cryptocurrency trading and trialing a central government-backed digital currency.
An increasing number of Indians, many of whom have never invested in the stock market or any other asset class, have started to trade cryptocurrencies in recent quarters, prompting concerns among some that they might end up losing their money.
Local cryptocurrency exchanges have reported growing volumes of transactions and user bases this year and raised record capital from high-profile investors. CoinDCX, backed by B Capital, and CoinSwitch Kuber, backed by a16z and Coinbase Ventures, became unicorns this year.
India’s Prime Minister Narendra Modi, and several other lawmakers, as well as several industry stakeholders, have held several meetings in recent quarters to discuss the cryptocurrency space and some of the recent developments.
At least one top Indian minister recently held conversations with a prominent venture capitalist and suggested that India is likely to formulate a law that will support innovation following China's decision to ban cryptocurrency trading and mining, according to a source directly familiar with the matter.
Many lawmakers, in the meantime, have also expressed concerns about the nature of ads carried by cryptocurrency exchanges. A consensus was reached in that meeting that these “irresponsible advertisements”, which promised wild profits to consumers by investing in crypto, were misleading youths in the nation and must be stopped, TechCrunch reported earlier.
Several Bollywood stars, including legendary Amitabh Bachchan, Ayushmann Khurrana and Ranveer Singh, who have starred in several of the country's biggest blockbusters, have promoted cryptocurrency trading in TV and newspaper ads.
Lawmakers have also expressed concerns around potential misuse of using crypto trading vehicles for laundering money and financing terrorism efforts.
Shaktikanta Das, governor of the central bank Reserve Bank of India, said last week that the country needs to have much deeper discussions on the issue of cryptocurrencies.
“When the central bank says that we have serious concerns from the point of view of macroeconomic and financial stability, there are far deeper issues involved,” Das said at an event. “I’m yet to see serious, well-informed discussions in the public space on these issues.”
Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin's original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.
A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange.
History of bitcoin:- In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later, in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.
In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review (Vol. 46, Issue 4).
In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system.Shortly thereafter, Nick Szabo described bit gold. Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.
In 2009, the first decentralized cryptocurrency, bitcoin, was created by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme. In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It used scrypt as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin, used a proof-of-work/proof-of-stake hybrid.
On 6 August 2014, the UK announced its Treasury had commissioned a study of cryptocurrencies, and what role, if any, they could play in the UK economy. The study was also to report on whether regulation should be considered. Its final report was published in 2018, and it issued a consultation on cryptoassets and stablecoins in January 2021.
In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.
In August 2021, Cuba followed with Resolution 215 to accept Bitcoin as legal tender, which will circumvent U.S. sanctions.
In September 2021, the government of China, the single largest market for cryptocurrency, declared all cryptocurrency transactions illegal, completing a crackdown on cryptocurrency that had previously banned the operation of intermediaries and miners within China.