What are cryptocurrencies and what will be the effect of active trading of cryptocurrencies in India?



What are cryptocurrencies and what will be the effect of active trading of cryptocurrencies in India?

The mode of retail payments in the world is changing at a very fast pace, and here is a new innovative mechanism which has come into limelight these days. The new innovative mechanism is cryptocurrency.
What are cryptocurrencies?
Let us first understand what are digital currencies. Digital currencies are the currencies which are in the global a financial system (mobile wallet like PayTm, Freecharge, etc.) and not held in physical form.
Cryptocurrencies are just a part of these digital currencies, which are based on certain algorithms. A cryptocurrency is a fully digital currency, which is not issued by the government and there is no government intervention. It is designed to work as a real currency.
It is designed to work as a real currency. It is a currency that has no intervention from the banks or any other financial institution unlike in the case of other money. It has real value but is fully digital. It is on your computer and because of a network that is set up, it is easy to see how much money is there at one time and who has that. Cryptocurrencies are irredeemable and cannot be held in physical form.

What is Bitcoin?

It is the first implemented example of a cryptocurrency. There are only a limited number of bitcoins that can be mined. You don’t have to buy these bitcoins; you mine them which is done based on certain algorithms. They are made using cryptography. Online payments are sent directly from one party to another without going through a financial institution.

Bitcoins have been observed to reach their peak point at least once a year. The current value of bitcoin is above $5900 (27th October). The awareness for these digital currencies is increasing day by day and a surge of customers is getting into this market. The digital currency market has few limitations but carries many advantages as compared to current payment mechanisms, so our study will describe all the uses, the limitations, advantages, of bitcoin, and a detailed primary and secondary study on the awareness of digital currencies among the people.
what will be the effect of active trading of cryptocurrencies in India?
Bitcoin will have a positive impact. There is transparency, as all the information is known. There is also freedom in payment as you can control when and where to send and from where to get money. There is less risk for merchants and he would suffer less potential losses as their personal information is not known and also, there is no fees or very less fees giving it a competitive edge over the other currencies. But the negative impacts overshadows these positive impacts. Due to the active trading, people would want to launder their money making their money white. This would further increase black money in India and people might indulge in illegal activities due to the anonymity of this currency.
Bitcoin is relatively young and new, therefore people need to get educated about it and more awareness needs to be spread.

 Follow @rdhmfinance on instagram for latest updates.
Thanks for reading!
Please comment on any financial query you had like me to address. I will try to post something worthwhile. 


Coming up Next: What is financial leverage and why do companies use it?


Comments

Post a Comment

Popular posts from this blog

What is a marketing funnel and how can you implement it in your business to increase sales?

Image
What is a marketing funnel and how can you implement it in your business to increase sales? "Yo dude, you need to increase your funnel size". Today, we will understand what does this phrase mean when some entrepreneur asks you to increase your funnel size. There are various ways of marketing available to capture potential customers, some being more effective than the other. A business's objective includes selling its product or service to maximum number of customers possible in order to garner the benefit of economies of scale and increase the revenue as well as the profit. Now, coming straight to the topic, a marketing funnel is a journey of any person who is the ultimate buyer of your product or service. The marketing funnel is so important that companies like Amazon, Ford, Bigbasket and Reliance Jio also use it. Observe the image below carefully that the funnel narrows down as you go down i.e. with each level of filtering the number of potential purchasers reduce. The ...
Read more

What factors to consider when taking a health insurance?

Image
What factors to consider when taking a health insurance? The following are the factors that need to be considered when taking a mediclaim or health insurance. Pre and post expenses:  The policies usually have a time frame under which the expenses are covered. You should see for how many days prior to diagnosis of illness and for how many days post diagnosis the expenses are covered. A good policy will cover 30 days pre-illness to around 90 days post illness expenses for a claim. Premium: There are many companies that offer these insurance policies, however you will notice that the premiums for the same sum assured will vary from company to company. Therefore, you should do a prior research about the premiums and then look for where you can save money. Bed or per day room charges: There are policies that will mention that we cover the hospitalisation expenses only if you use the general ward, however, better services are provided to people with private rooms. So, read the documents ...
Read more

Top 30 things to keep in mind when trying to start your first business?

Image
Have you been thinking of starting a business, but you get bogged down by the process, then you have landed to the right article. Listed below are the top 30 things to keep in mind when trying to plan and start your dream company: Product/Service: The first and foremost thing is to decide on what you plan to sell or provide to your clients. Basically, it is the idea that you want to implement. The way successful entrepreneurs approach this aspect is to solve a mass real life problem or a mass real life convenience that people didn't know they needed. Since business is something that you plan to do for a long period of time, choose a product or service that you are passionate about. This way your work doesn't feel like work but its fun to see things coming together. Sourcing of product/service: There are two options that you can either make your own product or ask a supplier for the same, but even if you are going to make your own product, in most cases you will have to get ra...
Read more