This is an Expert Contribution from Adv. Kanishk Agarwal, Founder, CriTaxCorp (A Law Firm)
In today’s generation, every citizen has moved towards digitalization so cryptocurrency which is entitled as ‘utility settlement coin’ came with the new trend which helps in a secure transaction. It is playing a huge role in changing today’s economy. Cryptocurrency is a digital or anyone can say it is virtual currency that uses cryptography for security. It’s nearly impossible to counterfeit because of this security features.
Bitcoin
The person who came up with the idea of cryptocurrency was Satoshi Nakamoto, the unknown inventor of Bitcoin. This Bitcoin was launched in 2009. Satoshi said he developed “A Peer-to-Peer Electronic Cash System”. The user has to use their credit or debit card to exchange fiat currency for Bitcoin or can mine bitcoin through mining process. A user can buy as less as up to 8-decibel points making it viable for any person to buy even with smallest of investment. After the request is sent from one user to another using the same is reflected in the blockchain network and the said transactions are approved by the “miners”, increase in transactions and mined coins makes the mining of the bitcoins even more difficult and requires more miners to join the network. The post-approval money will be taken from the user in exchange for Bitcoin. At the time of selling, the user can use same application as well in return of the cash value. Safety is no concern as there is cryptography which makes the transaction secure and safe. But to process Bitcoin is slightly difficult as the computer has to solve a difficult mathematical problem with a 64-digit solution this process is called hashing. After the problem is solved then, one block of Bitcoin is processed. The success of Bitcoin has spawned a number of competing for cryptocurrencies.
India is expected to lead the world in generating this value, as we are a developing country with a billion plus population that can infuse a huge amount of capital and general interest into any cryptocurrency making it a hit overnight. We have already seen it with Bitcoin, which has suddenly found thousands of new buyers in recent months.
Initial Coin Offerings (ICOs)
ICO’s are one of the noticeable trends of cryptocurrency. These are user or consumer friendly and have shredded a new wave in cryptocurrency market. This has promoted game zone by specifying its promising attribute towards Game Protocol. The platform will provide game creators with the tools to advertise and distribute their work while allowing developers to raise funds to implement their projects. ICO as a new business model leveraging blockchain technology will sustain as the digital way, combining crowdfunding and new hybrid asset class of equity ownership and currency.
Various ICO’s are paving the way through a protocol which is followed through Eutherium. To understand it in layman terms Eutherium is like google play store and in order to post your apps (ICO’s) the code of Eutherium is to be followed.However, a lot of scams have also been witnessed in this area with companies launching ICO’s and duping away with bitcoins of people. It is also seen that Government is also having a stringent view on ICO’s and will come with stringent rules and regulation in regard to the same to protect the interest of people.
Denta Coin
It’s a blockchain concept designed for Global Dental Industry. It is used worldwide by every individual. Denta coins focus on improving dental care and making its position worldwide. It is listed on Coin market cap and is traded on the following international exchange platforms: Cryptopia, EtherDelta, Mercatox and Coinexchange. In India, Denta Coin collaborated with cryptocurrency exchange BuyUCoin for sale of their coins in India. A lot of people are also trying to understand the routes to launch ICO’s in India.
Mutual Funds and Hedge Funds
People are facing the issue with low-interest rates on fixed deposits (F.D.) and small saving secure investment. But with the market followers Mutual Fund comes in the market with many questions in the mind, such as ‘Is it safe to invest in Mutual Fund’?, ‘Aren’t they investing in stocks’. Cryptocurrency Hedge Funds such as God Coin, Icoshark are coming up which are investing in major initial coin offerings such as EOS, Tezos, Bancor, Tierion. Icoshark is managed by a group of experienced blockchain and financial industry experts and powered by sophisticated analytical instruments.There are now more than 120 Hedge Funds focused solely on Bitcoin and cryptocurrency.
Crypto Currency Consultant
There are various consultants who are advising the small time investors about which cryptocurrency to invest in and are earning the consulting fee as well as some % of profits to be made by them with no share in the downside. These consultants study the market and understand the applicability of different alt coins and suggest as per their knowledge and experience in the crypto industry
Trading in cryptocurrency has surged because of extraordinary returns. These returns have paved a way for a lot of startups to mushroom and use the blockchain technology in various different manners, however; most are still hovering around buying/selling of Bitcoin per se. Even a lot of banks have accepted and adopted the blockchain technology innovated by Ripple and that is also one of the reasons that its price has surged 84% in one day this week.No doubt, government is yet to give its verdict on cryptocurrencies like Bitcoin and recent action of surveying activities by IT department yesterday on 9 exchanges in India is also an indication that government is becoming pro-active and is looking into the subject. To conclude blockchain technology surely looks promising, however, crypto currency regulations are to be formulated by the government which will decide how these trends are to shape in future.
