We all live in a world where everything we own has value, most commonly monetary values. We are all familiar with paper money and coin currencies. However, there is another medium of currency, too. It is called Digital Money. Electronic wallets, debit, and credit cards are all examples of Digital Money and are controlled by either the central government or a known authority.
Cryptocurrency is also one kind of Digital Money. It is mostly like any other paper or coin currency but without a physical presence. Cryptocurrencies are a decentralized form of money, meaning that no single body can have authorization over it. Thus, the government or any other known authorization can not regulate cryptocurrencies.
There are numerous types of cryptocurrencies today all over India. But first, let us understand more about Cryptocurrencies.
What is Cryptocurrency?
Cryptocurrency is basically virtual money that is secured by cryptography. Wondering what cryptography is? Cryptography consists of two words- crypto meaning ‘hidden’ or ‘vault’ and graphy meaning ‘writing’. These systems allow us to make a secure payment online. Many Cryptocurrencies are backed up the blockchain technology.
If you wish to purchase a cryptocurrency, you must have a digital wallet. You can buy, sell, and use any other services of a cryptocurrency through a digital wallet.
Some of the types of Cryptocurrencies in India
There are various different types of cryptocurrencies in India. However, two of the most famous and used types of cryptocurrencies along with their values in India are as follows-
- Bitcoin- Bitcoin is the most famous cryptocurrency. Bitcoin, like any other cryptocurrency, is just virtual money. You can buy products and services through bitcoins. Bitcoins are just files on a computer system stored in a digital wallet. People can send and receive bitcoins through their respective digital wallets. Each and every transaction that takes place over a Bitcoin is recorded in a blockchain, thus, making it possible to track down every transaction there has been. This prevents any mischievous activities. This was one of the first types of cryptocurrencies. The price of Bitcoin in India is 25,36,869.22 Indian Rupees.
- Ethereum- Ethereum is called the “world’s programmable blockchain”. It was primarily built like Bitcoin but has big differences. Through Ethereum, you can not only pay/transfer money securely but can also use its other financial services, play games, and also use its other apps, too. But most importantly, it does not steal or tamper with your personal information. The price of Ethereum is currently 95,125.74 Indian Rupee
Different types of Cryptocurrency Wallets
There are numerous types of cryptocurrency wallets. Some of them being-
- Hardware wallets– Hardware wallets are hardware devices and it takes care of public addresses and keys. The hardware wallets look mostly like a USB with side buttons.
- Paper Wallets– It is printed QR coded from the wallet. Partial funds can not be sent through paper wallets. Paper wallets were quite famous but then the hardware wallets took over.
The demand for Cryptocurrency in India
Though at first, people in India were hesitant to use Cryptocurrencies, it gradually changed with time. The uses of Cryptocurrency have risen through time and for good reasons. Some of the reasons being-
- Decentralization – The best thing about cryptocurrencies is that it does not give the authority to a particular government or an organization. In most cases, the government often denies international transfers for several reasons but cryptocurrencies eliminate access to even the government. Thus, it is the most preferred mode of payment for international transfers.
- Secured transactions – There is no involvement of a third-party and thus, it eliminates the risk of manipulation. Since it is a shared data, all the data are accurate and are impossible to meddle with. Cryptocurrencies run on blockchain technology and we all know how it is almost impossible to hack into a blockchain application.
- Fast transactions- One of the many reasons to use cryptocurrencies is that it is a fast and easy way of transfer. Unlike other transactional methods, it lets you have multiple transactions at the same time without mixing up.
Are Cryptocurrencies illegal in India?
India had been using cryptocurrencies as a means of online transactions for a long period of time. However, the Reserve Bank of India was gravely worried about the protection of the investors of India. The RBI was worried that such transactions would also lead to an internet fraud or scam. RBI banned commercial banks from any type of cryptocurrency trade in 2018. However, the Supreme Court overruled the ban in March 2020.
Cryptocurrencies deserve all the fame that they have gotten worldwide. While only some may agree to the fact that cryptocurrencies are the future and will replace actual currencies in the near future. Whereas, others claim that cryptocurrencies indulge in criminal activities and are totally against the use of cryptocurrencies. All the types of cryptocurrencies seem very helpful to the public. However, the same can not be said with the government.