The brand new technological jinx that is gnawing at the world’s exchequers is cryptocurrency. While the governments want to bring it under control, traders are seeking to carve fortunes out of it.
Bitcoin is but a quasi-currency and anything but actual money. It is just a collection of rules developed by certain software that has become the most favorite game of the world. Invented in the year 2009 by Nakamoto, Bitcoin has neither got any centralized bank nor any record of transactions. A rough estimate of 10k crores was recorded in trade in India when the price of Bitcoin had risen to 20000 dollars before plunging down to 6000 dollars. The price of Bitcoin is now slowly recovering owing to a strong demand in Korea.
The only process of Bitcoin creation is mining. The miner of Bitcoin receives a portion of price of Bitcoin as reward.
Although, Bitcoin is not quite legal in India, it is not totally illegal either. December witnessed the setting up of a panel to scrutinize the impact of crypto currencies and recommend regulations to control them for the sake Indian economy. The government has decided to make a firm decision of whether to keep or ban the use of Bitcoin. There are around 5 million cryptocurrency investors in India trading in Bitcoin, Ripple, Ethereum, Dash, Litecoin and others.
There is an urgent need of regulation, education and research. It is difficult to regulate cryptocurrency owing to its virtual nature. Fiat currencies possess three salient features viz a standard of transaction, a standard of cost and a specific storage value. Merchants refuse cryptocurrencies as they are neither stable nor suitable for storage.
However, Bitcoin is now being accepted by KFC outlets in Canada while South Korea has lifted the ban on the cryptocurrency. Yamada Denki of Japan is receiving Bitcoin as payment and Sberbank of Russia is evading regulations to allow trading in cryptocurrency.
The Nirav Modi scam of 12600 crores is a nip in the bud of Blockchain. As Malladi has declared the next few years will witness an explosion in cryptocurrencies and Blockchain technology in India.