Cryptocurrency is the new-normal after the COVID-19 pandemic, and the impact of it is gigantic on the youth of the new world.
According to Wikipedia, A cryptocurrency is a binary data designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Crypto is surely the future of the digital world, and it’s going to stay here even if Government bans the medium of exchange between fiat and crypto. People have started accepting crypto as a legal tender, e.g, El Salvador.
Cryptocurrency are known for their huge return than traditional FD, Mutual funds, ETFs, and Long-term investment in stocks. Even, if some of you may have not heard about cryptocurrency or know something about it, you have heard the term “Bitcoin” and recently “Dogecoin”. This is because these currencies become popular because they have huge fan following, mostly because Bitcoin is a first cryptocurrency and Dogecoin is a currency which was made as a joke, but it's not a joke any more.
What’s the impact on India by cryptocurrency?
Recently, Rapper Raftar has started accepting cryptocurrency as a mode of transaction for his concert tickets.
There are many people who have started accepting crypto as their mode of transaction, and mostly think that in future their price will skyrocket just like other popular cryptocurrency like Ethereum, Cardano, Binance coin, etc.
Recently, a common Auto Rickshaw has started accepting cryptocurrency for his fare. Netizens, especially Crypto enthusiast, has gone mad after seeing this.
Cons of Cryptocurrency
Everything has their cons too, Blockchain is the future technology and government also accepts it, what government doesn’t accept is the use of cryptocurrency.
Some reasons are:
Use of Cryptocurrency for illicit use : Cryptocurrency has a bad history of using its anonymity for dark net transactions and doing millions of dollars of fraud in US.
Speculation : They are used for speculation, they don’t have a trend. The one who has most crypto can fluctuate the prices in one day. Just when Ethereum founder donate 5% of its holding of Shiba Inu to Indian Government, he still holds 45% supply of Shiba Inu, so the person who has the majority of coins/tokens can fluctuate the market in short amount of time.
Banks fear : Banks got interest when people deposit money into the savings amount provided by them, but people lose money because of inflation. Most people have understood this concept, so they rather think that if they are going to lose money due to inflation, why not put that money in the form of cryptocurrency in their crypto wallet or exchanges. That way they have a chance of huge return. That’s why a bank opposes crypto, or some accept it, like Morgan Stanley.
Mining : An increase in cryptocurrency mining increased the demand for Graphic card(GPU). This suffers Gamers a lot, as for playing high graphics games, they need an advance graphic card. But due to heavy buying of graphics card from the market by the miners, the prices have skyrocketed, and most graphic card have gone out of stock.
By seeing this situation, Nvidia has asked retailers to do what they can when it comes to selling GPUs to gamers instead of miners. “Gamers come first for Nvidia,” said Boris Böhles, PR manager for Nvidia in the German region.
Future of Cryptocurrency in India
India has a huge market with their 50% population being young blood, they are heavy risk-takers and always try their luck. Youth of India are accepting cryptocurrency and many have already accepts it.
Recently CoinDCX, an Indian Crypto-Exchange, raised 6.70 billion rupees ($90 million), leading to a valuation of $1.1 billion and becomes India’s first Crypto Unicorn.
India just need support from Indian Government, who is still not sure whether to allow crypto in India as an investment or not. Though, FM Nirmala Sitharaman has said that the Cryptocurrency laws have been drafted, and it will be put on table in the next parliament, and she also said investors may have an option to exit if Indian government prohibit cryptocurrency.
Let’s hope for the best, thank you for reading if you have come this far, hope I’ve solved your confusions.
