Impact of Cryptocurrency in India | Coin Gabbar Blogs
Nowadays Cryptocurrency is one of the most trending topics which had huge discussions and debates held in India in no time. However, it came across as a financial tool that can be obtainable andworthwhile to many time gourmets. It is to be considered as the capability to enable economic growth along with social growth across the world by ensuring quick access to capital and financial services. Cryptocurrencies and Bitcoincertainly have a high functional and obstructing quality that initially started to prevent the way traditional financial systems work.
There are few cryptocurrencies that simply made their way to India in 2013-2015, nobody has ever wondered that it would become home to crypto-innovation inflation in the last many years. These cryptocurrency startups chopped up visibly in metros and small towns. Even theCovid - 19 pandemic couldn’t control its growth, despite the lack of certain government regulations.
Cryptocurrencies like Unocoin and the Indiancrypto interchanged and cryptocurrency wallet will now permit its users to buy each day consumer items by using Bitcoin. Apart from a straight buy as one may do with cash for a product, these cryptocurrencies allow users to purchase vouchers by using a digital coin. These vouchers can be utilized to buy consumers items and products.
Use of Cryptocurrency in India
If we talk about the most popular cryptocurrency“Bitcoin”, then it can be clearly observed that the purpose of bitcoin is just like Gold, which is to store value. In fact, it is more convenient than gold as you only require a mobile phone and internet to acquire it. Gold can be liquidated more easily but that's what makes crypto more volatile as well.
Cryptocurrencies are to be said that it has their own value and purpose as Bitcoin is seen as the alternative to Goldmeanwhile Ethereum is seen like a supercomputer and can be utilized to manage any global programs just by buying cryptocurrency either.
Apparently, some cryptos and Indian crypto exchanges, and cryptocurrency wallets will now be permitting their users to buy regular consumer items using Bitcoin. Rather than from normal purchases as one might do in their day-to-day life using cash to buy products, now these cryptocurrency allows users to purchase vouchers using digital coins. However, it is to be noticed that Unocoin is the first in respect of being an Indiancrypto wallet.
We Indians are already using several wallets and digital ways of payment and with the introduction of these cryptocurrencies, not only the competition will increase but also users will get more benefits from them.
As per reports of Q1 2021, there was a massive hike in the numbers of crypto traders and crypto transactions. It clearly indicates that Covid situations encouraged people to try some better way to make passive income. They were looking for opportunities to generate some decent passive income and saw cryptocurrency as divine help. The important thing is that somehow cryptocurrencies have not let them down this time.
The number of crypto traders is increasing at a rapid pace and as we are already very comfortable with the digital payment system, it is obvious that we will not take much time to adopt this crypto revolution.
How will it impact us?
The impact of cryptocurrency in India is clearly showing as the prices of the cryptocurrency market have now fallen down. As the Indian government made it very clear with their action of not furnishing a legal status for cryptocurrency in India.
And the reason for being into this kind of commitment comes across from the government as because the challenge of monitoring the delegation transactions in cryptocurrencies is difficult to trace which could be advantageous for hackers, criminals, and also for terrorist activities. The other reason might be as the cryptocurrency market could be the top competitor for the banking service industry.
No country or government wants a competitor in its fiat currency, but in reality, many of them are not placing any restrictions on its use. Thus the picture is not clear yet and we are enjoying the benefits of cryptocurrency while living in a gray area of rules and regulations. However, there are few things that will have a solid impact on the traditional structures.
A few of them are listed below:
● Blockchain
Blockchain is referred to as distributed ledger technology (DLT), which makes the record of any digital asset fixed and natural via the use of decentralization and cryptographic hashing. If we take this blockchain into a business perspective then it is significant because it drags into next-generation business process enhancement software. Collaborative technologies such as blockchain pledge the ability to enhance the business processes that happen between organizations, completely decreasing the ‘Cost of trust. This is why it provides crucially higher returns after every investment dollar spent than most established internal investments.
Blockchain works -
It carries three important concepts which are blocks, nodes, and miners.
In blocks, every chain comprises numerous blocks and these blocks have three basic parts which are -
- Data in the block.
- A 32 - bit whole number is referred to as nonce which is incidentally generated once a block is produced, which later initiates a block header hash.
- The hash is a 256 - bit number nuptial to the nonce. It should be started with a massive number of zeros. ( i.e., be extremely minor).
When the first block of a chain is produced, once initiates the cryptographic hash. The data in the block is signed and continuously united to the nonce and hash until it is mined.
Nodes - The most important concept in blockchain technology is decentralization. Nodes can be considered as any type of electronic device that balances the copies of the blockchain and keeps the network functioning. Each node has its own copy of the blockchain and so the network should algorithmically allow any fresh mined block for the chain to be updated, trusted, and verified. As the blockchains are transparent, it is easy to view and check every action in the ledger.
Miners - Miners are known for creating new blocks on the chain through a process called mining. In a blockchain, each block has its own distinctive nonce and hash, however, it also references the hash of the prior block in the chain, and this is why mining a block in teasy, especially on large chains. It has been seen that miners use special software to decode the puzzling math problem of finding a nonce that starts an accepted hash. As the nonce has only 32 bits and the hash is 256, there are hardly four billion possible nonce-hash amalgams that should be mined prior to the exact one being found.
Blockchain is a technology with ample potential and benefits and it has been observed that many reputed banks are interested to use this technology in their operation. It will not only provide better security but also makes all the process very smooth and hassle-free.
Low transaction cost
Cryptocurrencies and blockchain do not require any support such as brick and mortar buildings to exist as the cost associated with transactions is minimal. In that case, there is no requirement for employees' wages, utility bills or any kind of rent to be paid. So, those savings are organically transformed into transaction fees.
As a result, this encourages more people to believe in these fresh financial tools and initiate transitioning, enabling the global economy to be more closely entwined. And relying on the broker you select, you can even trade with no minimum deposit requirement as many of the new platforms are offering.
● Increased transparency of transaction
As all the blockchain and cryptocurrencies transactions are motorized and digitized, they are all followed in a distributed ledger. The best part is that it cannot be handled by either people or organizations which highly declines the risk of fraud and deception. It clearly shows that underdeveloped countries also have a higher chance of entering the financial transactions game and enhancing their own economy and social prospects. What’s more, citizens will be able to keep track of state funds and will thus have a say in their political climate.
Conclusion
Currently, India is on the way to the next phase of the digital revolution for which the nation has the potential to channel its human capital, and human capital professionals and resources into the revolution and come up as one of the warriors. And for that, all that India requires is to get the policymaking in the right way. Blockchain and crypto assets will be an important part of the fourth Industrial Revolution which Indians shouldn’t make simply bypass it.
The utter changes in cryptocurrency in the future of virtuality cannot be determined in near future. Virtual currency is illegal in almost all countries across the world. Even though there are few countries that are serving this currency, there are also countries that totally ban them in transactions.
So, if cryptocurrency in the modern era has become famous then it is quite impossible for all the countries to fully ignore it. The legitimacy of the use of bitcoin is a debate but the acceptance of cryptocurrencies can probably happen in the next few years in the world. one important thing we find about the use of cryptocurrency is that people who are investors in cryptocurrency are having an income that is far from others and they also own the other methods of investment.
