CRYPTOCURRENCY AND ITS FUTURE

A cryptocurrency is a digital currency that is created and managed through the use of
advanced encryption techniques known as cryptography. Cryptography is associated with the
process of converting ordinary plain text into unintelligible text and vice-versa to make the
text more secure and safe. Earlier the cryptography was effectively synonymous with
encryption but nowadays cryptography is mainly based on mathematical theory and computer
science practice, and has played an important role in the growth and development of
cryptocurreny all over the real and cyber world.  Most cryptocurrencies aren’t regulated by
national governments, they’re considered alternative currencies – mediums of financial
exchange that exist outside the bounds of state monetary policy. Cryptocurrency is marking
its value effectively all over the world.
Bitcoin is considered as the pioneer of modern cryptocurrency it first originated in year 2008
and first used in year 2009, in 2011 Bitcoin showed a tremendous surge, a gain of 3200%
within three short months and attracted the investor community toward the future of
cryptocurrency and now bitcoin covers 65% of total cryptocurrency market and one bitcoin
cost about 51,051.60 United States Dollar (thirty seven lakh five thousand Indian rupee).
Bitcoin is the most popular and widely used cryptocurrency but there are numerous digital
currencies that are playing their role in the market and making the world of cryptocrrency
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more vast and broader some of them are Ethereum, Litecoin, Binance Coin, cardano etc.
The Ethereum blockchain is the most commonly used worldwide. Launched in 2015,
Ethereum makes some noteworthy enhancements on Bitcoin’s basic design. especially, it
utilizes “smart contracts” that enforce the performance of a given dealings, compel parties to
not reverse their agreements, and contain mechanisms for refunds ought to one party violate
the agreement. Smart contracts represent a vital move toward addressing the shortage of
chargebacks and refunds in cryptocurrencies, it remains to be seen whether or not they’re
enough to resolve the matter utterly.
Besides all this different types of cyber currencies cryptocurrency work in a definite manner
with the use of famous concept which is called blockchains.it maintain its own record
keeping through the use of a blockchain which is an online ledger and transaction log.
Blockchain create digital record of all the transaction, contracts or certificates which can only
be added upon and can’t be altered or deleted because every block or transaction arrange
itself on the basis of last or previous transaction. It hides information of both buyers and
sellers and record it as hash or row of letters and numbers generated by a complex
mathematical function which is not so easy to solve or decode it requires super computers to
generate or decode this codes.
With the system of cryptocurrency it is potential to pay or get where you're, and one don’t
even would like a laptop to use it. Everything may be managed with our hand from mobile
device, which means that even for those with very little within the manner of technology,
they're still able to access their finances and create choices in real time. This accessibility
could be a key feature for the adoption of cryptocurrency, and is being employed across the

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https://economictimes.indiatimes.com/definition/cryptography
globe to supply opportunities for those that would antecedently have struggled to become on-
line shoppers. Having associate degree unregulated currency that's not certain by customs
changes and unsteady political changes may be a positive and a negative.
 Cryptocurrency is totally anonymous, which is nice for people who worth their on-line
privacy and are cautious of redeeming an excessive amount of of their digital data. whereas
the extra layer of security that namelessness provides is a wonderful benefit, it's conjointly
junction rectifier to the inevitable adoption of the technology by the criminal fraternity. The
black market and also the dark internet are huge users of cryptocurrency, and criminals
clearly value their anonymity the maximum amount as they value the flexibility to send vast
sums of cash anyplace within the world with many faucets of their phone. For additional law-
abiding citizens, the advantages of namelessness are many, however maybe the foremost
attractive is that the incontrovertible fact that there's no probability of identity theft, and that’s
of major interest to anyone trying to find safer ways in which to stay on-line safely.
While the employment of cryptocurrency is anonymous, the transactions themselves square
measure all hold on associate open ledger. This suggests that the info is obtainable to look at
by anyone at any time, and that’s a serious boon for those want for an additional clear
banking industry. it's thanks to this transparency that bitcoin is taken into account one in
every of the most well liked topics in world currency. It is cheaper than general electronic
transfer and much secure than other transactions. It is a gem for investors and venture
capitalist it is well established fact that lesser or limited the thing more is its value same in the
case of cryptocurrency or say specially with the bitcoin as its numbers are only limited or
conserve to 21 million bitcoin and only 18.5 million bitcoin are in circulation worldwide
which makes it more precious, collectable and increase its hype as well as economic value,
this is the reason that big multinational companies are shifting and investing there economic
resources in cryptocurrencies
Every budding technology can have a degree of uncertainty regarding the future, and
cryptocurrency is not any different. Whereas the recognition is growing, and businesses race
to stay up with growing demand for its use, it's going to be too early to understand simply
however huge of a sway cryptocurrency can have. As a possible money revolution, it’s price
keeping a watch on, and perhaps finance in currently before interest spreads worldwide.
There are various questions that are raised time to time regarding use and security of this
cyber currencies as there are many issues with cryptocurrency. Crypto currencies are one of
the most valuable assets of many individual and institution in present time so being so
expensive and valuable the chances of hacking and breaching its security are sky-high.
Blockchain had been considered much safer and secured compared to the paper record but
once hailed as unhackable, blockchains are now getting hacked.News of hacking and
breaching are on highlight every now and then because as the technologies get more
sophisticated, so do hackers therefore the users and newcomers are demanding more and finer
security for their transaction, storage and assets
As with each rising technology, there area unit those who use quality and ignorance to scam,
cheat and steal your hard-earned cash. This has definitely proved to be the case with digital
currencies, thus it’s vital to bear in mind of the security risks. Treating your bitcoins as real
cash can get you within the right frame of mind, as you merely need to follow customary
security protocol as you'd with currency. For those mistreatment cryptocurrency to shop for,
sell or gamble on-line, merely be as careful as you'd with any investment. For on-line
casinos, look out for the recent tricks updated to the digital age, and don’t trust firms that
provide phantasmagoric bonuses, odds, and offers. With a touch basic security, you'll
minimize your probabilities of creating a loss that may become.
Now the big question is, should we shift from paper currency to cryptocurreny? So the
answer is yes the peoples and governments of different nation and sates can adapt
cryptocurrecy in response to paper currency as managing the paper currency are frantic and it
takes more time and expense but managing cryptocurrencies are far easier. Easy accessibility
to use and manage the cryptocurrrencies is the main feature because of which the use of
cryptocurrency are spreading worldwide, it is not regulated according to national boundrie’s
or by any particular government organisation or institution, one can complete a transaction
worth million dollar within a second without and intermediate. Most importantly more and
more peoples and millionaires are understanding that cryptocurrency is the currency of future
and has the capacity to effectively dominate the world of economics with its brilliant and
markable performance and features.
Many big economics of world like china believe that cryptocurrencies can be trusted and
Chinese government could make changes to the cryptocurrencies at the basic level by
implementing its will on the data miners who keep them running, getting the thumbs up from
regulators should definitely help in building confidence. Many investors are searching for
trusty crypto partners to dip their hands into the crypto waters, several big firms have
purchased hundreds of millions of dollars bitcoin recently few of them are microstrategy,
tesla who recently invested 1.5 billion us dollars on bitcoin, galaxy digital holdings,
coinshares, ETC group bitcoin ETP etc which high rocketed the value of bitcoin in year 2021.
Besides investment and increasing interest of major multinational companies and institution
there are some governments who has banned the use or trade of cryptocurrency in there
nation, Kyrgyzstan, Bolivia, Bangladesh, Iran, Nepal, Thailand, Denmark are some of them
because if we see from economic wide perspectivr cryptocurrencies aren’t regulated by
national governments and typically exist outside their direct management, they naturally
attract tax evaders several little employers pay staff in bitcoin and alternative
cryptocurrencies to avoid liability for payroll taxes and facilitate their staff avoid taxation
liability, whereas on-line sellers usually settle for cryptocurrencies to avoid sales and taxation
liability.
According to the agency, the U.S. government applies identical taxation tips to any or all
cryptocurrency payments by and to U.S. persons and businesses. However, several countries
don’t have such policies in situ and also the inherent obscurity of cryptocurrency makes some
jurisprudence violations, significantly those involving anonymous on-line sellers,
troublesome to trace.
In India’s perspective if we completely move to cryptocurrency, it will cause loss to “ senior
age revenue” and Reserve bank of India had to ask government to finance them rather then
them financing the government at present scenario, as today RBI makes its profit by issuing
cash currencies and then collecting tax from it, after keeping small amount to regulate itself
all the money goes in the hand of central government, but when we shift to digital currencies
the bank has to borrow money from the government to regulate itself. That’s why in future it
is possible that government and reserve bank of India can introduce there own modified
system of cryptocurrencies that could be regulated by RBI itself, but it is far away from the
present time and need a drastic development in logistic and digital accessibility of our
country. In the absence of regulation by the government of India the future of cryptocurrency
seems to be in a disarray. The government is yet to introduce a bill properly dedicated to
rules, use aned regulation of cryptocurrency.
Cryptocurrencty is emerging as a global currencies many companies are set to accept there
payment in cryptocurrencies, many are already practicing it, different governments are
recognising it as future economic, investors believe it as a digital gold and its value are
increasing every second. Speedy and safer transaction, global use high value and many other
characters makes it future ready to replace the paper currency, some economist still believes
that future of cryptoureencies are not so trustworthy as it seems because you want currency to
be the store of value and if it is highly variable, you don’t know tomorrow it can go half of its
value today, you are not so happy to hold it, also the major attraction of this currencies are
that it is hidden to the investigation agencies. New Silk road was the users of bitcoin it was
the shop that sold illegal drugs, a wrong transaction from a user can lead to loose of million
dollars which can’t be gain back. There are both pros and cons of this future currencies but
still it need to be get recognition and acceptance from different authorities.