What is Cryptocurrency and is it Worth Investing in 2021

Ever since man discovered the internet, it has opened up a wide range of opportunities to establish, grow and excel. The internet provides great potential to make money. Today, with the right know-how, anyone can make money on the internet. Gone are the days where people worked under others. Today, the internet equips us all to be our own bosses and become entrepreneurs. This is especially true since the past 3 years wherein all of mankind has been facing a global pandemic, COVID-19. The COVID-19 pandemic has caused the global economy to fall, thus resulting in repercussions across the globe. As a result, many have lost their jobs and experienced financial issues.

What is cryptocurrency and is it worth investing in 2021

The big drop in global finances has resulted in the value of currency falling due to inflation in many countries, especially India. It just proves that no matter how hard you may have toiled, a fall in the currency value due to inflation can be disastrous to your earnings and savings. What is the alternative? How else can we save money such that it remains secure and less affected by such global recessions? That’s where ‘Cryptocurrencies’ come in.

 

What is cryptocurrency?

Have you ever wished for a form of currency that remains unaffected by world governments and economic changes. Are you looking for a form of currency that is very secure? You may have even dissed away such ideas as fantasy or stuff that just might be possible only in the future. Well, welcome to the future. The future is here today and it brings with it the solution called ‘Cryptocurrency’. Cryptocurrency is a digital or virtual currency that is decentralized and encrypted. Hence it is the one of the only forms of investment that are safe from global recessions.

 

Is cryptocurrency safe ?

Cryptocurrency is a virtual currency that remains independent from government influence. This is because the cryptocurrency is not issued by any central authority. Hence cryptocurrency is decentralized, making it immune to government interference and manipulation. But how does the cryptocurrency achieve this? The cryptocurrency is decentralized thanks to it being majorly based on ‘Block chain technology’. Block chain technology refers to a decentralized system wherein information is recorded in such a way that it becomes difficult or impossible to change or manipulate. Cryptocurrency achieves this via a network that is distributed across numerous disparate computers. This explains why cryptocurrency remains unscathed despite global financial recessions and is considered to be the future of safe investment and commerce.

While the cryptocurrency is safe from government influence, is it safe from the clutches of hackers? Wouldn’t it be easy for hackers to steal the virtual currency? The answer is no. The block-chain technology, on which majority of the cryptocurrencies are based, is immune to hacking by third-parties; be them government or non-government bodies. Hence cryptocurrency is not so easy to cheat or hack. Cryptocurrency is secured by cryptography, which refers to a method of protecting data through the use of code language. Hence only those for whom the data is intended to or belongs to can access it. Hence it is impossible to counterfeit or double-spend cryptocurrency.

 

Should you invest in cryptocurrency?

Cryptocurrency, due to being virtual, has a lot of benefits to offer. It is considered to be the future of investment, especially since everything is gradually becoming digital and also due to the fact that the virtual world continues to expand. Here are top reasons why you should invest in cryptocurrency:

Cryptocurrency is revolutionary:

Cryptocurrency is considered to be revolutionary due to its greater security, faster processing times and cheaper ‘beyond the border’ transactions.

Cryptocurrency is marked by high liquidity:

It is relatively easy to buy and sell cryptocurrency due to it being marked by high liquidity. Hence there is always a high demand for cryptocurrency.

Cryptocurrency investments lead to high returns:

The increased volatility of cryptocurrency makes it possible to get higher profits on investments, provided that one plays the game safe.

Cryptocurrency empowers you:

Cryptocurrency is independent from government manipulation and does not rely on banks. Hence you can have more control over the virtual currency.

Cryptocurrency can diversify your investment portfolio:

Cryptocurrency is a form of investment. Hence it is a great way to diversify your investment portfolio and make some extra money. The cryptocurrency market is open 24/7 all around the year. Hence you can choose to invest in it at any time. One can trade full-time or part-time.

Cryptocurrency is everywhere:

Cryptocurrency is almost everywhere. Many major organizations accept cryptocurrency transactions. A few examples include Microsoft, Etsy, Paypal and Starbucks. It is only a matter of time before every major organization begins dealing in cryptocurrencies.

 

 

Cryptocurrency in India

Indians have also joined in the races as almost 7 million citizens have already invested an aggregate of 1 billion dollars in cryptocurrency. Due to the sudden interest in and growth of cryptocurrency among the Indian populace, the government is taking necessary steps to ensure that cryptocurrency investments can occur without any security concerns.

Cryptocurrency is not illegal in India. So anyone can invest in cryptocurrencies. But due to its increased misuse by large corporations, the Indian government has started making efforts to regulate the flow of cryptocurrency. As a result, bans had been placed on cryptocurrencies in 2018. But as of 2020, the government has decided to revisit its ban and, rather than stand against cryptocurrency, take efforts to regulate and legalize it. In March 2020, the Supreme Court permitted banks to handle cryptocurrency transactions. In February 2021, the Governor of Reserve Bank of India, Governor Shaktikanta Das, stated that the RBI is currently working on its digital currency.

 

Indian Law Regarding Cryptocurrency

The Government of India is taking efforts to bring in the “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021”. This is expected to clear the government’s stance against cryptocurrency and other virtual currencies once and for all.

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