The Evolution of Bitcoins
Twelve years back, on the 31st of October, 2008, we came across the Cryptocurrencies’ concept. Who knew it would be a part of the financial market?
Traditionally currency is maintained in paper or metal form digital marketing agency One Search Pro, like notes and coins, or in electronic form in bank accounts. A cryptocurrency is a form of electronic money too. Bitcoins advanced as a variant of electronic money that would permit payments to be made from one party to another without going through a monetary institution. Through this, neither the government nor the central bank can control our money.
It has become an alternate financial system based on software technology. The record of cryptocurrency is kept up all the while by many computers rather than a centralized entity or a bank. Accordingly, the record of cryptocurrency cannot be meddled in by any individual or authority. You can call them Digital coins.
What are the benefits of Bitcoins?
- It works as an investment.
- It also works as an alternate form of payment.
- It’s a store of value.
- Any authority or institution does not control it.
Why bitcoins are “not so popular”?
- Like any other investment, it is also risky.
- It has the risk of money-laundering and security.
- It does not have a physical value and a wide acceptance.
- They tend to have a limited supply. This has raised its value in the face of large money printing by central banks around the world.
- It also faces technology challenges, like every transaction in blockchain takes around 10 minutes. So, it is not practical to wait so long for every transaction.
It is on the verge of getting acceptance by conventional finance people, and the trend may change in the future. Doors that were shut for them are now opening.
Especially due to this COVID-19 pandemic, it has been on the rise. During the foreign transfer, the banks deduct a sum in the name of the foreign transfer fee. It takes considerable time and amount too. So here, Bitcoins are more economical than credit card fees. This is also a reason why banks are against crypto-currency because it is against their business model. They have admirably doubled their value in this pandemic. When the question comes to security, reputed Indian platforms have included KYC safeguards as a mandatory step.
Current Scenario
Talking about India, in 2018, the Reserve Bank banned banks from processing payments linked to cryptocurrency. The Supreme Court overturned this ban in 2020 as violative of the rule of freedom of business and profession.’ Since then, the cryptocurrency sector has operated legally in India.
In January 2021 again, India’s government intends to introduce a bill to Lok Sabha that would boycott private digital currencies such as bitcoin. The government is also wanting to make a national cryptocurrency. It does not perceive cryptographic money as lawful and will take all measures to abolish digital-money use. In addition to it, the bill attempts to deny all private cryptographic types of cash in India; be that as it may, it considers certain uncommon cases to advance the innovation of digital currency and its implications”.
However, Cryptocurrencies such as bitcoins are decentralized, while national digital currencies will typically be centralized. This is not the first time Indian lawmakers have taken such a strong position against digital money or cryptocurrencies.
Globally, the surge in Bitcoin is due to the open-mindedness observed concerning cryptocurrency in the general public and the financial industry. So, we can diversify our investment through Bitcoin but follow the government’s rules and regulations.
