University of Mumbai

“Study on consumer awareness and perspective

towards Cryptocurrency in India.”

Bachelor of Management Studies

Semester VI
(2021 - 2022)

Submitted by
kartik baikar
Roll No.75
PROJECT GUIDE
Ms. Pradnya Kudav

M.V.M. EDUCATIONAL CAMPUS, M V M

Mandali’s College of Commerce & Science
Affiliated to University of MumbaiOff Veera Desai
Road, Andheri (West) Mumbai – 400 058.

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 CERTIFICATE

This is to certify that Mr.kartik baikar, Roll no: 75 of Third Year

B.M.S. (Marketing), Semester VI has successfully completed the
project on “Study on consumer awareness and perspective towards
Cryptocurrency in India.”
under the guidance of Ms. Pradnya Kudav in the Academi Year
2021 – 2022.
I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any other Degree or Diploma of any University. It is
his/her own work and facts reported by his/her personal findings and
investigations.

Internal Guide: Ms. Pradnya Kudav External Examiner

Date: Date:

Ms. Anita Chaudhary Dr. Gopal Kalkoti

BMS Co-ordinator PRINCIPAL

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 College Seal

DECLARATION

I, kartik baikar, student of M V Mandali’s Colleges of Commerce &

Science, T.Y.B.M.S. SEMESTER – VI, hereby declares that I have
completed my project on “Study on consumer awareness and
perspective towards Cryptocurrency in India" in the Academic Year
2021 – 2022.

This information is true and original to the best of my knowledge.

Wherever there is a reference to someone else's previous work, it is
noted and listed in the bibliography.

I hereby further declare that the information of this document has

been obtained and presented following academic rules and ethical
conduct

Signature of Student

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.
I would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of this project.
I take this opportunity to thank University of Mumbai for giving me chance
to do this project.
I would like to thank my Principal, Dr. Gopal Kalkoti for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Co-ordinator for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project Mrs.
Pratiksha Poojari, whose guidance and care made the project successful.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my parents and peers
who supported me throughout my project.

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 ABSTRACT

In the history of humans, they have used commodity as currency in a Barter system. Fiat
currency (notes and coin) is the most recent development, they were first used around 1000
years ago, but today it is the most dominant form of money. This wasn’t the end of monetary
evolution. Cryptocurrency is the latest development in the monetary system. Cryptocurrency
is neither commodity money nor fiat money – it is a virtual currency. Compared to
conventional payment systems, Bitcoin lacks a governance structure other than its underlying
software. This has several implications for the functioning of the system. First, Bitcoin
imposes no obligation for a financial institution, payment processor, or other intermediaries
to verify a user’s identity or crosscheck with watch-lists or embargoed countries. Second,
Bitcoin imposes no prohibition on sales of particular items; This research explains what
cryptocurrency is, awareness about cryptocurrency in the Indian market and, the factors
which will help people in adoption of cryptocurrency

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 Contents

Chapter 1 Introduction 6-19

1.1 Instructions to Awareness of Cryptocurrency in India 6
1.2 The History Of Cryptocurrency 7
1.3 Overview Of cryptocurrency 8
1.4 Blockchain 10
1.5 Type Of Cryptocurrency 12
1.6 Industry Profile 15
1.7 Global market of Cryptocurrency 16
1.8 Cryptocurrency in India 19
Chapter 2 Research Methodology 20-24
2.1 Research methodology 20
2.2 Limitation of study 21
2.3 Research Aim and Objective 21
2.4 Statement of Problem 24
2.5 Significance of study 24
Chapter 3 Review of Literature 25-26
3.1 Review of Literature 25
Chapter 4 Data Analysis & Interpretation 27-44
4.1 Data Analysis & Interpretation 27
Chapter 5 Suggestions 45-47
5.1 Findings 45
5.2 Suggestions 46
5.2 Conclusions 47
Chapter 6 Bibliography 48
Chapter 7 Annexure (Questionnaire) 49-52

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 CHAPTER 1

1. Introduction

There is no doubt that the era of information and communication technology has brought
many golden opportunities in various fields. The financial and commercial sector is one of
the areas that will benefit from these technologies and online connectivity. The concept of a
virtual world has been stimulated by the growing number of online users, leading to a new
commercial phenomenon.
As a result, new forms of trade, trading, and currencies emerged. Cryptocurrency is an
attractive financial instrument that has evolved in recent years. Cryptocurrency is any form of
electronic money, virtual or real, that can be used for various financial transactions. The
paper explores aspects of consumer awareness of cryptocurrency in India.
The lack of central authority behind it, the lack of legal regulation, and the hacking of some
exchanges, called the means of illegal money laundering, raises questions about the perceived
trust and risk of cryptocurrencies. Therefore, risk factors that are perceived to affect the
buying and selling of cryptocurrencies on online platforms have been interpreted as a matter
of consumer behavior and it has been decided to conduct an investigation.
Online trust factors, on the other hand, are factors for online entrepreneurship, electronic
services, and electronic communications success, and the increased perceived risk also
encourages people to avoid manipulation. Trust is one of the most important issues in online
shopping in this context. Cryptocurrencies and processing stock markets carry trust issues
and risks. This situation can affect consumer behavior in the developing crypto market.
Therefore, a comprehensive model that defines trust and perceived risk enables consumers to
use cryptocurrencies.

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1.2 THE HISTORY OF CRYPTOCURRENCY

The concept of cryptocurrency was initially coined in the late 1980s to create money that
could be transferred anonymously (without mentioning the name and details of sender and
receiver) and without centralized institutions (i.e. Banks). David Chaum, an American
cryptographer, started the Digicash network, an anonymous cryptographic electronic money,
in 1995.
An early cryptography-based online payment needed software to withdraw money from a
bank and specific encryption keys to send money. Following it, Nick Szabo invented Bit Gold
in the late 1990s, which is frequently referred to as a direct forerunner of Bitcoin.

The process started in the year 2008. Satoshi Nakamoto was the individual who published the
paper. He defined the process of bitcoin blockchain after buying the BTC for himself.

Satoshi Nakamoto created the first cryptocurrency, Bitcoin, in 2009. Bitcoin was not
regulated by any government or institution, and there was no third party engaged; it was open
source and based on peer-to-peer transactions. Blockchain was used to create this
cryptocurrency.
Many attempts to generate digital money were made in the 19th century, all of which failed.
After observing all of the failures, Satoshi set out to create a decentralised digital money
system. An example is network-based peer-to-peer file sharing.

Bitcoin revolutionized the digital coin market by decentralising it and liberating it from
hierarchical power structures. Individuals and businesses instead use a peer-to-peer network
to transact with the coin.. Beginning in 2011, it drew a lot of attention, and a slew of altcoins
— a catch-all term for all cryptocurrencies created after Bitcoin – started appearing

Litecoin was launched in the fall of 2011 and enjoyed significant success before being
overtaken by Ripple. It had the biggest cryptocurrency market cap after Bitcoin until it was
overtaken by Ripple in 2014. Litecoin changed Bitcoin's protocol to increase transaction
speed in the hopes of making it more suitable for day-to-day transactions. Ripple, which
debuted in 2013, provided a completely different paradigm than Bitcoin and now has a
market capitalization of around $255 million, another noteworthy cryptocurrency in the
evolutionary chain uses a groundbreaking technological development to protect and sustain
its coinage. Peercoin has a hybrid network security method that combines the proof-of-work
(PoW) technology used by Bitcoin and Litecoin with its own mechanism, proof-of-stake
(PoS).

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1.3 Overview of Cryptocurrency

A cryptocurrency is a controversial digital asset designed to function as a means of exchange. that

employs cryptography to safeguard transactions, control the creation of extra units, and validate asset
transfers, according to Wikipedia. Digital currencies, alternative currencies, and virtual currencies are
all examples of cryptocurrencies.
A cryptocurrency is a digital asset that uses strong encryption to safeguard financial transactions,
control the creation of additional units, and verify asset transfers. In contrast to centralised digital
money and central banking institutions, cryptocurrencies use decentralised control. Each crypto
currency's decentralised governance is achieved by distributed ledger technology, most commonly a
blockchain, which acts as a public financial transaction database.
Bitcoin is widely regarded as the first decentralised crypto money, having been released as
open-source software in 2009. Over 6,000 altcoins (alternative variations of bitcoin or other
cryptocurrencies) have been formed since the launch of bitcoin.

FORMAL DEFINITION
According to Jan Lansky, a cryptocurrency is a system that meets six conditions.

1. The system does not require a central authority, Its state is maintained through distributed
consensus.
2. The system keeps an overview of cryptocurrency units and their ownership.
3. The system defines whether new cryptocurrency units can be created. If new
cryptocurrency units can be created, the system defines the circumstances of their origin and
how to determine the ownership of these new units.
4. Ownership of cryptocurrency units can be proved exclusively cryptography.
5. The system allows transactions to be performed in which ownership of the cryptographic
units is changed. A transaction statement can only be issued by an entity proving the current
ownership of these units.
6. If two different instructions for changing the ownership of the same cryptographic units
are simultaneously entered, the system performs at most one of them.

The majority of cryptocurrencies are clones of bitcoin or other cryptocurrencies with different
parameter values. These cryptocurrencies, known as 'altcoins,' exhibit little to no innovation.
Dogecoin and Ethereum Classic are two examples. In contrast, plenty of cryptocurrencies
have emerged that, while borrowing some concepts from Bitcoin, offer novel and innovative
features that provide significant differences.

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These can include the introduction of new consensus mechanisms (for example,
proof-of-stake) as well as decentralised computing platforms with "smart contract"
capabilities that provide significantly different functionality and enable non-financial use
cases. These 'cryptocurrency and blockchain innovations' are divided into two categories:
new (public) blockchain systems with their own blockchain (e.g., Ethereum, Peercoin,
Zcash), and dApps/Others that exist on additional layers built on top of existing blockchain
systems.

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1.4 Blockchain

Bitcoin and other cryptocurrencies are commonly associated with blockchain technology. It is
a distributed database of transaction records that is validated and maintained by a network of
computers all over the world. Instead of a single central authority, such as a bank, the records
are controlled by a vast community, and no single person has power over them, nor can
anybody travel back in time and edit or erase a transaction history. Due to blockchain's
built-in distributed nature of structure and confirmed guarantees by peers, information cannot
be changed like it can in a traditional centralised database.
In other words, unlike a traditional centralised database that is stored on a single server,
blockchain is distributed among software users. Blockchain allows anyone on the network to
view everyone else's entries, making it impossible for a single central entity to gain control of
the network. When someone performs a transaction, it is sent to the network, where computer
algorithms determine the transaction's authenticity. Once the transaction has been verified, it
is linked to the previous transaction, forming a chain of transactions. The blockchain is the
name given to this chain. Blockchain technology is based on a decentralised network, which
means it is a peer-to-peer network.

Blockchain is a revolutionary concept that has successfully brought transparency to users and
has become a game-changer in many industries. Blockchain promotes entrepreneurship by
reducing corruption and tearing down bureaucratic barriers, thereby establishing common
mass ownership. This peer-to-peer technology has created new opportunities and a personal
foundation for economic empowerment. It is too early to predict what lies ahead, but the
future of blockchain appears bright, and it is safe to say that blockchain technology is here to
stay.

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How blockchain works:

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1.5 Types of Cryptocurrency

According to CoinMarketCap, the total number of cryptocurrencies available to date is 7,812,

with a total market cap of $324.716 billion (as of January 20, 2021), and the number is
growing by the day. The following are explanations of some of the various cryptocurrencies:

Ethereum (ETH) is an open-source, decentralised blockchain system with its own coin,
Ether. ETH serves as a platform for a variety of different cryptocurrencies as well as
decentralised smart contract execution.
The concept of a blockchain smart contract platform was first introduced by Ethereum. Smart
contracts are internet-based computer programmes that automatically carry out the steps
required to complete a contract between many parties. They were created to eliminate the
need for trusted middlemen between contractors, lowering transaction costs while enhancing
transaction reliability.
The ERC-20 compatibility standard allows Ethereum's blockchain to hold additional
cryptocurrencies, known as "tokens," in addition to smart contracts. To date, more than
280,000 ERC-20-compliant tokens have been launched on the ETH platform, making it the
most popular usage of the network. USDT, LINK, and BNB, for example, are among the
top-100 cryptocurrencies by market capitalization.

Hedera (HBAR) is the most widely used, long-lasting, enterprise-grade public network
for the decentralised economy, enabling individuals and businesses to build powerful
decentralised applications (DApps).
It is intended to be a more equitable and efficient system that eliminates some of the
limitations that older blockchain-based platforms have, such as slow performance and
instability.
Hedera Hashgraph, unlike most other cryptocurrency platforms, is not built on top of a
traditional blockchain. Instead, it introduces a brand-new type of distributed ledger
technology known as a Hashgraph.
This technology can outperform many blockchain-based alternatives in key areas such as
speed, cost, and scalability. The average transaction fee for Hedera transactions is $ 0.0001
and usually completes within 5 seconds. Overall, Hedera Hashgraph claims to be able to
handle over 10,000 transactions (TPS) per second compared to the most popular
Proof-of-Work (PoW) -based blockchain, which can only handle 5-20.

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Polygon (formerly Matic Network) is the first well-structured, easy-to-use Ethereum scaling
and infrastructure development platform. A basic component of the framework, the Polygon
SDK is a modular and versatile framework that can be used to build a variety of applications.
Polygons basically turn Ethereum into a fully functional multi-chain system (also known as
the blockchain internet). Polygon uses a customized version of the Plasma framework based
on the Proof of Stake checkpoints on Ethereum's main chain. Polygon's sidechain can handle
up to 65,536 transactions per block with this state-of-the-art technology. Polygon's sidechain
is built to enable a wide range of decentralized finance (DeFi) protocols available in the
Ethereum ecosystem.

Ripple (XRP) is a cryptocurrency and a digital payment network for financial transactions
that was launched in 2012. It's a global settlement network that's designed to make money
transfers quick, secure, and inexpensive. Ripple, unlike other currencies, allows any sort of
currency to be traded, from USD and Bitcoin to gold and EUR, and connects to banks. Ripple
is also distinct from other digital currencies in that its primary focus is on large-scale money
transfers rather than person-to-person transactions.
Ripple was designed to be a faster, less expensive, and more scalable alternative to other
digital assets as well as existing monetary payment.

Solana (SOL) protocol is designed to make the construction of decentralised apps

(DApps) easier. It intends to increase scalability by combining a proof-of-history (PoH)
consensus with the blockchain's underlying proof-of-stake (PoS) consensus.
Small-time traders and institutional traders alike are interested in Solana because of its
revolutionary hybrid consensus mechanism. The Solana Foundation is working hard to make
decentralised finance more accessible on a bigger scale.
Solana is well-known in the cryptocurrency world due to the blockchain's extraordinarily fast
processing speeds. Solana's hybrid protocol enables substantially faster transaction and smart
contract execution validation. With lightning-quick processes, you'll be up and running in no
time

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The Basic Attention Token (BAT) is the token that powers a new blockchain-based
digital advertising platform designed to fairly reward users for their attention while also
providing advertisers with a better return on ad spend.
This experience is delivered via the Brave Browser, where users can watch
privacy-preserving advertisements while earning BAT rewards. Advertisers, on the other
hand, can deliver targeted ads to maximise engagement and reduce losses due to ad fraud and
abuse.
The Basic Attention Token is the reward unit in this advertising ecosystem, and it is
exchanged among advertisers, publishers, and users. Advertisers pay for their campaigns with
BAT tokens. A small portion of this budget is distributed to advertisers, while the remaining
70% is distributed to users. — whereas intermediaries, which typically drive up advertising
costs, are removed from the equation to improve cost-efficiency.

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1.6 Industry Profile of Cryptocurrency

Cryptocurrency is digital money that is entirely intangible in form and uses

cryptography and blockchain. To make virtual currencies more intelligible,
Rosenzweig, the CEO of the IMVU game firm, compared them to airline miles, which
are considered a sort of virtual money, and defined them as "symbolic currencies [that]
you may collect and then transfer into something you care about. For users, virtual
currencies make trading and completing financial transactions easier. At the same
time, they made it easier and more efficient to earn, spend, exchange, and accumulate
money. They're utilized to buy virtual products within the same environment or to
trade money between platforms. They can also be used to purchase both digital and
physical things. As a result, virtual currency provides excellent potential for
businesses and operators to monetize their applications and so boost their profits.
Cryptocurrencies in social networks, cryptocurrencies in social games, loyalty points,
and cryptocurrencies in peer-to-peer networks are examples of cryptocurrencies used
on different platforms. There are two types of cryptocurrency platforms: centralised
cryptocurrency platforms and decentralised cryptocurrency platforms. A centralised
cryptocurrency is a cryptocurrency system with a centralised repository that functions
similarly to a central bank. The repository's administrator has complete control over
transferring Cryptocurrency value between people or from one location to another.
Decentralized cryptocurrency, on the other hand, is a cryptocurrency system that does
not have a centralised repository or a single administrator.

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 1.7 Global Market of Cryptocurrency

Cryptocurrency is a digital currency that is entirely intangible in nature and includes

cryptography and blockchain as the main technological backbone in its creation and further
processing as transactions, distribution, and security of various cryptocurrencies.
Many nations around the world have taken a positive stance on cryptocurrency acceptance
and regulation, while many others, including India, remain skeptical. Many difficulties such
as volatility, security, and legal issues are associated with cryptocurrencies.

Estimating a company's true market size is difficult, and in the case of cryptocurrencies, it is
a gargantuan effort due to their highly volatile nature. Their value fluctuates wildly from time
to time. In recent years, especially in the last two years, cryptocurrency, especially bitcoins,
has become a prominent participant in global market capitalization. The number of coins
available in the market multiplied by the current market price of that coin in the current
market gives the market cap.

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 Total Cryptocurrency Market Cap

The chart below shows the percentage of Total Market Capitalization of Bitcoin and other
popular altcoins.

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 Major Cryptoassets By Percentage of Total Market Capitalization

The below graph shows the individual proportions of the largest ten crypto assets relative to the total
market capitalization of all assets. Since BTC was the first asset, it has remained the largest by market
cap, which is why its dominance in the market is a number that many people follow. We describe the
assets tracked in this chart as crypto assets because it includes tokens and stable

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1.8 Cryptocurrency in India

India's cryptocurrency investments increased by 612 percent in one year, from

$923 million in April 2020 to $6.6 billion in May 2021, a 400 percent increase
in just one year.
More than 15 million people in India are now buying and selling digital coins,
representing a growing portion of the country's population. India's statistics
are gradually catching up to the 23 million crypto traders in the United States
and the 2.3 million in the United Kingdom.
The most interested in cryptocurrency are the country's 18-35-year-olds, the
bulk of whom have more money.
The majority of the country's 18-35-year-olds, who have more money, are the
most interested in cryptocurrency. In an interview with the CEOs of India's four
largest cryptocurrency exchanges (Unocoin, Wazirx, Bitbns, and Coindcx), it
was revealed that one of the major factors driving the significant shift to
crypto is the epidemic.

Over the last five years, India's CryptoTech industry has grown at a rate of 39 percent.
Currently, crypto technology employs nearly 50,000 people in India. In India, there are over
230 CryptoTech startups, with over 15 million retail investors. Moreover, international
organisations are now hard at work hiring younger back-end engineers to support the
technology used by contractors to accept cryptocurrency payments. The economy is also
benefiting greatly from the inflow of foreign funds into the newly established India-based
crypto platforms.

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 CHAPTER 2

2.1 Research Methodology

This study's research design is mostly based on the exploratory research approach, which in
most cases entails qualitative examination. It's the most basic and loosely arranged design.
The information was gathered by primary data gathering, which included a
questionnaire-based survey method. Each question has two types of options: multiple choice
and we allowed Respondents to select/provide multiple answers. The survey was distributed
across India in the form of a Google Survey Form to measure people's understanding and
perceptions of cryptocurrencies. The questionnaire was created with all demographics in
mind, such as males and females, age groups, working (public/private/educational
institutions), business people, non-working, students, and so on. Different annual income
groupings have also been considered.
The two variables under study were accurately assessed using tables and graphs, and the
results were evaluated.
Results and interpretations, findings, conclusions, and recommendations are all based on
the findings and interpretations. There have been some recommendations made. There
have been some recommendations made.
In addition to primary data, secondary data has been gathered to examine the general
growth pattern of the cryptocurrency market in India and around the world. Secondary data
is primarily gathered through internet platforms such as websites, blogs, and publications.
Data was also gathered from books, journals, and newspapers.

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2.2 Limitations of the Study

1. There are a few limitations to the study, such as the fact that the sample used was
convenience sampling, which may or may not represent the actual population of India.
2. Because the poll was sent out via Google Survey Forms, which requires an internet
connection. As a result, this research is confined to internet users exclusively.
3. Some of the respondents in the sampling units filled out the survey without any interest or
expertise, resulting in some sampling error.
4. Although cryptocurrency is a global product, this study is based mostly on Indian
residents, therefore it will not provide a clear picture of its adoption on a bigger scale, since
individuals genuinely desire to use it as a currency or investment instrument.
5 Due to time limitation

2.3 Research Aims and Objective

● To study the level of awareness among Indian consumers regarding cryptocurrency

● To study the perspective of Indian consumers regarding cryptocurrency.
● To know consumers' opinions about the future of cryptocurrency
● in India
● To understand the consumer's opinion regarding government intervention and
involvement to develop bitcoin as a legal mode for cash-less transactions.
● Examining, analyzing, interpreting, and potentially generalizing the former to reach a
logical conclusion for a larger group.
● To suggest feasible recommendations to make the situation better.
● To identify factors that will help to increase potential investors in the Indian crypto
market.

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2.4 STATEMENT OF PROBLEM

As cryptocurrency has been innovative in all of its endeavors and has attained a unique
place on the global platform, and people are excited about its presence, the journey of
cryptocurrencies has been a roller coaster ride, and the same is expected in the near future.
There are many challenges associated with cryptocurrency like :

● Regulation- Cryptocurrency regulation is currently the most important aspect of the

cryptocurrency industry. As some countries have already regulated its use and
transactions in the current financial market, others are coming forward to make a
friendly call for its regulation. Until and unless it is regulated globally, it will be
perceived as an illegal means only.
● Theft-This is also a significant setback for cryptocurrency owners. The storage of
cryptocurrency keys is a huge risk because once stolen, they cannot be recovered, and
it is not a completely regulated product around the world. As a result, theft is a
significant challenge in protecting this digital asset.
● Volatility-Because its regulation is still awaited around the world, it will not be
regarded as a stable system, and there will be high fluctuations in its demand and
supply, resulting in its volatile nature, in which its value changes sharply within a
short period of time.
● Upgradation of technology- Since this entire concept of cryptocurrency is based on
technology, we all know how dynamic technology is. It must be upgraded on a
continuous basis. Upgrading always comes at a higher cost.
● Cost- Nothing is free, and the asset that is entirely the creation of technology will be
more valuable as well. All of the innovative technologies used in it are expensive, so
it comes at a cost. Every time you send or receive cryptocurrency, you will be charged
a gas fee. The same is true for crypto trades (swaps) and any other process that
requires smart contracts, such as minting NFTs. So, if you are involved in any
transaction over a blockchain network that involves sending or receiving some
amount of data – large or small (depending on network traffic), you will almost
certainly be paying gas fees.
● Taxation- The cryptocurrency industry's taxation laws differ from one country to the
next. Some countries tax cryptocurrency transactions, while others have only
considered taxation law. In India, if such an instrument is notified by the RBI, any
trading or investment in cryptocurrency, such as bitcoins, is considered a capital asset
if purchased for investment or trading purposes. Any gain derived from the transfer
will be taxed at a flat rate of 30%.
● Money laundering- Money laundering is one risk that is very likely to increase with
the use of cryptocurrency, particularly with platforms that allow users to exchange
cryptocurrency for real money. In a real-world example, in 2008, the police arrested a

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 group of 14 people for laundering $38 million obtained from the sale of
cryptocurrency. The group transferred $38 million in gold farming profits from Korea
to a paper company in China as payment for purchases.
● impact on real-world monetary systems: Because some cryptocurrency are linked
to real-world monetary systems, they may have an impact on the demand and supply
of real-world money. Allowing users to buy virtual and real goods and services with
cryptocurrency on some platforms, for example, may reduce the demand for real
money. Users will no longer depend on real money to buy what they want, but will
instead use cryptocurrency. On the other hand, some platforms allow users to
exchange their virtual currency for real currency, which increases demand for
real-world currency. This change will have an impact on the real monetary system.

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2.5 Significance/ Need for the Study

This study is significant as there lies great potential in cryptocurrency it brings many global
business opportunities. Cryptocurrency is a new generation of technology-based digital
currency that is rapidly gaining acceptance among the common people. However, the
government and regulatory agencies remain uncertain of its use, and there are numerous legal
and security risks associated with it. Cryptocurrencies are mostly used as investment
instruments, and they are quite volatile in nature. It's important to study the perspective of
consumers towards cryptocurrency.
As we know Cryptocurrency is a digital currency that is not recognized as a legal means of
transaction for day-to-day transactions in the majority of countries throughout the world. It
has not been well received by the Indian government or regulatory authorities. As a result,
research of its awareness and perception among people has been conducted, with a focus on
India. It will provide us with some insight into how people in our own country view its
presence. The conclusions of this study will have an impact on how Indians are viewed in
general.

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 CHAPTER 3
3 Literature Review

1. Akshay A., ShivashankaracharY. - “A Study On Security Issues In Investments And

Transactions In Bitcoins And Cryptocurrencies” They focused on the unique characteristics
of Bitcoin as a cryptocurrency, as well as the key security issues associated with Bitcoin
transactions and investing, in this document. The primary focus of research is on Bitcoin
security. Because its origins are primarily technological, it remains vulnerable during the
transaction process. The security issue is not limited to mining and trading bitcoins; storing
them online also poses a significant security risk. India. As a result, there are no
considerations for bitcoin-related complaints of any kind. Other issues include a lack of public
awareness of bitcoins, volatility, illegal bitcoin transactions as part of a decentralised system
with no central regulation, and so on.
2. Christian Catalini, MITExpert- “Blockchain, Explained” In this blog (MIT
Digital), the author has detailed the blockchain technology and its origin in the
context of the origin of the cryptocurrency, emphasizing that the blockchain
technology has delivered the core values ​inherent in the cryptocurrency such as low
cost for verification and networks, privacy and security, etc. He has also explained
how this blockchain technology will benefit other sectors like banking, finance,
money transfers, money payments, identity and privacy, the internet of things,
robotics, artificial intelligence, etc. will interfere. He predicted that blockchain
technology will boom worldwide in the next decade.
3. Peter De DeVries- "An Analysis of Cryptocurrency, Bitcoin and the Future".The
author of this research report conducted a SWOT analysis of Bitcoins and other
cryptocurrencies. Bitcoin's strength lies in its design and the small number of products
available. which will not be able to withstand inflationary pressures The weakness of
Bitcoin is in its transaction process, in which each transaction is visible to all public
record chains, allowing for cyberattacks and theft. The research paper mentions the
possibility of extending innovative cryptocurrency technologies such as cryptography
and blockchain to the banking and financial sector. The threats are related to the
highly volatile nature of these cryptocurrencies, which can be globally stabilised if
they are uniformly regulated.
4. Everett J. & Team, Department of US Treasury - “Risks and Vulnerabilities of Virtual
Currency- Cryptocurrency as a Payment Method”. The authors of this paper
examined the risks and challenges of using cryptocurrencies as an alternative to
traditional currencies for illegal users, consumers, the public sector, and financial
institutions. By examining the cryptocurrency needs and requirements for each of
these groups, it is easy to understand which groups are most likely to navigate to

25
specific cryptocurrencies and then develop an appropriate response. The emergence of
cryptocurrencies as a new payment method has far-reaching implications for users,
consumers, governments, and financial institutions. There are significant risks and
challenges to be overcome when accepting cryptocurrencies for large-scale financial
transactions. Cryptocurrency protocols and regulations will need to change to meet
the requirements.

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 CHAPTER 4

DATA INTERPRETATION, ANALYSIS,

1. Shows the number of respondents on the basis of gender.

Among all the respondents 33 are male,14 are female.

Gender No of Respondents Percentage

Male 32 68.1%

Female 14 29.8%

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1.2 Shows the number of respondents based on their age.

Age 0-20 21-30 31-40 41-50

No of Respondents 15 27 3 2

Among all respondents, 15 belong to the age category of 0-20 years, 27 belong to the 21-30
years age category, 3 belong to the 31-40 years of age category and only 2 belong to the
41-50 years.

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1.3 Shows the number of respondents based on their Occupation.

Occupation Student Employed Self-employed Unemployed

No of Respondents 27 10 9 1

Percentage 57.4% 21.3% 19.1% 2.1%

From the above Table and Graph, it is observed that among all respondents 57.4% are
students, 21.3% are employed (public/private/educational institution), 19.1% are
self-employed, and 2.1% are Unemployed.

29
1.4 Shows the number of respondents based on their annual income.

Annual income 0-3 lakhs 3-8 lakhs 8-12 lakhs

No of Respondents 33 10 4

Percentage % 70.2% 21.3% 8.5%

From the above Table and graph, it can be observed that among all respondents, 70.2%
earn in between 0-3 lakhs, 21.3% fin between under 3-8 lakhs and 8.5% are in between 8-12
lakhs.

30
1.5 Shows the number of respondents based on their educational background.

Education 10th 12th Undergraduate Bachelors masters

No of Respondents 1 10 28 1 7

Percentage % 2.1% 21.3% 59.6% 2.1% 14.9%

We asked respondents in the study about their highest level of education. The highest level of
education completed by 2.1 % is 10th. 21.3 % completed 12th grade as their highest level of
education. 59.6 % have an undergraduate degree as their highest level of education, 2.1 %
have a bachelor's degree, and 14.9 % have a master's degree as their highest level of
education.

31
1.6 a) shows the number of respondents on the basis of their awareness of
Cryptocurrency

Awareness yes No Maybe

No of Respondents 40 4 3

Percentage % 85.1% 8.5% 6.4%

Majority of the respondents, i.e. 85.1% are aware of crypto. Only 4 respondents are not aware
of it and 3 respondents are not sure about their knowledge about crypto.

32
1.6 b) awareness of Cryptocurrency gender-wise

Gender male female

No of Respondents 28 12

Percentage % 70% 30%

In the previous chart we show that out of the total respondents 85% (40 Respondents ) are
aware of cryptocurrency. This chart shows gender-wise awareness. Out of 40 respondents,
70% (28) respondents are male and 30% (12) respondents are female.

33
1.7 Indicates where they first heard about cryptocurrency.

Source Social media Youtube News Newspaper/ radio

magazine

No of Respondents 28 10 7 2 0

Percentage % 59.6% 21.3% 14.9 % 4.3% 0%

Majority of the respondents first heard about crypto, i.e 59.6% on social media, 21.3% heard
om Youtube, 14.9% heard on news channels, and 4.3% read it in newspaper/ magazine.

34
1.8 Shows the number of respondents based on their knowledge of cryptocurrency.

Knowledge level Basic framework Just have an idea Detailed knowledge No knowledge

No of 20 12 7 8
Respondents

Percentage % 42.6% 25.5% 14.9% 17%

It may be seen from the above Table and Graph that 25.5% of respondents have an idea about
Cryptocurrency, 42.6% respondents know about its basic framework and 14.9% are well
knowledgeable in Cryptocurrency.

35
1.9 The number of respondents who invest or trade in cryptocurrency.

Investment in yes no
cryptocurrency

No of Respondents 13 34

Percentage % 27.7% 72.3%

In the study, we asked, "Do you invest/trade in cryptocurrencies?" Of the total respondents,
27.7% had already invested or traded in cryptocurrency, while 72.3 percent have not invested
or traded in cryptocurrency.

36
1.10 Shows the number of respondents who use Cryptocurrencies in what ways.

In this question, we try to figure out how people use cryptocurrency. For this question we
allowed Respondents to select/provide multiple answers.
According to the study, the majority of respondents do not use cryptocurrency; however,
many of the respondents use cryptocurrency as an investment and for trading. Only a small
percentage of those responded to the survey use it as a means of transferring funds, either
globally or locally.

37
1.11 The percentage of respondents who prefer cryptocurrency as

Purpose Currency Investment tool

No of Respondents 10 37

Percentage % 21.3% 78.7%

It may be seen from the above Table and Graph that, 21.3% of respondents choose
cryptocurrency as currency. and 78.7% of respondents choose cryptocurrency as an
Investment tool.

38
1.12 Shows respondents' views on the future of cryptocurrency

In this question, we attempt to evaluate respondents' perspectives on the future of

cryptocurrency.
According to the study, the majority of respondents i.e 51.1% (24) believe cryptocurrency
with survive and grow in the future, 17% (8) of respondents think cryptocurrency is a bubble
and it will explode in the future, 8.5% (4) of respondents think cryptocurrency will grow
substantially in the future. 17% (8) of respondents think of any other reason.6.4% (3) of
respondents think cryptocurrency will decline substantially.

39
1.13 The opinion of respondents regarding the regulation of Cryptocurrency by central
authority

Opinion Agree Neutral Disagree

No of Respondents 5 36 5

Percentage % 10.6% 76.6% 12.8%

In the study we asked, opinion of respondents regarding the regulation of Cryptocurrency by a central
authority, Of the total respondents, 10.6% respondents agree with regulation. 12.8% of respondents
disagree with regulation and 76.6% of respondents are neutral.

40
1.14 The opinion of respondents regarding current regulatory and infrastructural support for
cryptocurrency in India.

Opinion Yes No Maybe

No of Respondents 13 10 24

Percentage % 27.7% 21.3% 51.1%

In the study we asked, the opinion of respondents regarding current regulatory and
infrastructural support for cryptocurrency in India of the total respondents, 27.7% respondents
thinks current regulatory and infrastructural support for cryptocurrency in India, 21.3% of respondents
think current regulatory and infrastructural do not support for cryptocurrency in India, and 51.1% of
respondents are not sure.

41
1.15 Study into what prevents respondents from using, trading, or investing in
cryptocurrency.

In this question, we attempt to evaluate reasons that prevent respondents from using, trading,
or investing in cryptocurrency. For this question we allowed Respondents to select/provide
multiple answers.
One of the big reasons that prevent respondents from using, trading, or investing in
cryptocurrency is a lack of knowledge, and another reason is legal issues regarding
cryptocurrency like legalisation of cryptocurrency. security issues and high volatility in
cryptocurrency are major reasons preventing from investing and trading.

42
1.16 A study attempted to find out what the major threats to cryptocurrencies are,
according to the respondents.

In this question, A study attempted to find out what the major threats to cryptocurrencies are,
according to the respondents. For this question we allowed Respondents to select/provide
multiple answers.
According to respondents, the biggest threat to cryptocurrencies is a legal issue caused by a
lack of regulation, as well as constantly changing policies. Another significant risk is the lack
of central authority over cryptocurrency. Because cryptocurrency is not controlled by any
central body, people are hesitant to use, invest in, or trade it.
As we all know, cryptocurrency is still a relatively new concept, and we are all continually
learning about it. As a result, compared to traditional investment instruments such as gold,
bonds, and the stock market, there is little public awareness, and the complicated process of
using/investing/trading normally necessitates expert advice. There are other dangers, such as
volatility. It's because traders and investors all over the world trade it 24 hours a day, 7 days a
week.

43
1.17 A study was conducted to see what factors will help cryptocurrency acceptance.

A study aimed to answer this issue by examining what factors will help cryptocurrency
acceptance. For this question we allowed Respondents to select/provide multiple answers.
Respondents feel Education about cryptocurrency will help in more acceptance and
awareness. Government legislation will give more confidence to use/trade/invest among
respondents. Acceptance by banks and retail websites will enhance cryptocurrency adoption
and usage. These are the major factors that will help in cryptocurrency adoption. Other minor
factors that influence adoption include a simplified procedure for purchasing
cryptocurrencies, a more stable cryptocurrency price, and improved payment networks

44
 CHAPTER 5

5.1 Important finding

From the Data Analysis and Data Interpretation, the following findings have emerged:

● The vast majority of respondents are men, still there are significant numbers of
awareness among women.
● The majority, 57.4 %, of respondents are between the ages of 21 to 30, with the
remaining 31.3 percent falling between the ages of 0 to 20.
● Most of the respondents are in the students category with 57.4% of the total
respondents.
● Most of the respondents earn between 0-3 lakhs annually.
● In a survey, we find out that 85.1% of respondents are aware of cryptocurrency.
● The majority of respondents first heard about crypto on social media.
● Among all respondents, the majority of the respondents are just know the basics of
cryptocurrency
● Majority of the respondents don’t invest or do trade in crypto.
● Majority of respondents prefer cryptocurrency as an investment tool.
● Among all respondents, the majority of the respondents believe that cryptocurrency
will It will survive and grow and 17% of respondents think its bubble and will
explode.
● Among all respondents, the majority of the respondents are neutral on the regulation
of Cryptocurrency by a central authority.

45
5.2 Suggestion

I would like to humbly present my suggestions on the subject.

The study clearly suggested that there is a lack of guidance and knowledge. This is associated
with financial literacy and education. In survey, we find of out that One of the big reasons
that prevent respondents from using, trading, or investing in cryptocurrency is a lack of
knowledge and most of this respondents age is between 0-20 and 21-30 Educating and
guiding them at early stage is very important as most of them seek for knowledge from social
media, in which chances of misinformation increase. Majority of them are students,
conduction educational program will help in awareness of cryptocurrency.

Cryptocurrency intrinsically embodies the world's most innovative technologies, baning it

completely would lose the millennial generation of the opportunity to learn about and
experience such innovative technology. A new report claimed that India government would
classify Bitcoin as an asset class in the country soon and Majority of respondents see
cryptocurrency as investment opportunity. Financial literacy become important because
cryptocurrenies price are more volatile compare to stocks, commodity, etc. due to this
taxation on crypto plays important factor. Lower taxation should be imposed. Creating a
global framework for cryptocurrency regulation rather than individual countries regulating.

46
5.3 Conclusion

Innovation always comes with two promises: one that offers enormous opportunities for
existing practices, such as making them more efficient, inclusive, or safer, and the other that
relates to potential risks and challenges that this new proposition may bring. The same is true
for cryptocurrencies, which introduce a solution capable of fulfilling the role of fiat money
but in an ever-expanding digital economy. However, as the examples show, such a novel
solution is not without complications. Cryptocurrencies attract both good and bad actors, with
the latter opting to use the new tool for illegal purposes.
Market efficiency is bound to improve as Blockchain Technology and cryptocurrency become
more widely adopted. Because of the use of this technology, a transparent and secure
environment is created. The incorporation of blockchain into the market, particularly by
business enterprises, can have a variety of benefits.
From the above findings, it can be concluded that people, in general, are aware of
Cryptocurrency. Acceptance of crypto payments by educated individuals with annual income
of 0 to 3 lakhs. currently. However, respondents expressed a desire to use cryptocurrency
payments in the near future, implying that acceptance may increase once certain (perceived)
barriers are removed.
In survey, we see people are seeing crypto as a new instrument for their investment as it
provides good return. But they are not willing to invest in Cryptocurrency due to a lack of
regulation from government and regulatory authorities. If the Government of India and its
regulatory authorities will come forward to regulate its use and transaction in financial
market, it can play a major role in an entire investment portfolio.
As it is well known that Cryptocurrency is the product of all new age innovative
technologies, and many countries of the world have already regulated its use in day to day
business and many countries are coming forward to regulate its transaction in financial
market.Cryptocurrency offers a new, effective, and attractive payment model that can
increase revenue for businesses and operators. It also offers alternative payment methods, in
addition to real money, that allows users to easily conduct financial transactions such as
buying, selling, transferring, and exchanging. Although cryptocurrency platforms provide a
new form of currency with various mechanisms and methods and open many channels for
digital financial transactions, they are not as well-controlled and regulated as they should be.

47
 CHAPTER 6

Bibliography

❖ https://medium.com/@Shardix/jan-lanskys-six-cryptocurrency-requirements-adaed50
58f7f

❖ https://techbullion.com/a-brief-history-of-cryptocurrency/

❖ https://e-cryptonews.com/how-many-cryptocurrencies-are-there-in-2021/

❖ https://community.nasscom.in/communities/blockchain/crypto-industry-india-decentra
lized-systems-centerstage-digital-evolution

❖ https://www.siliconindia.com/news/general/what-drove-indias-massive-cryptocurrenc
y-growth-nid-218221-cid-1.html

❖ https://coinmarketcap.com/charts/

48
 CHAPTER 7

ANNEXURE

❖ What is your gender? *

Male

Female

Others

❖ What is your age? *

0-20

21-30

31-40

41-50

50-60

Above 60

❖ What is your occupation ? *

Student

Self employed

Employed (Public/Private/Educational insitution )

Unemployed

❖ Annual income *

0 - 3 lakhs

3 - 8 lakhs

8 - 12 lakhs

12 - 30 lakhs

49
30 - 1 crore

Above 1 crore

❖ what is the highest level of education you have completed? *

10th

12th

undergraduate

Masters

Uneducated

❖ Are you aware of the concept "cryptocurrency"? *

Yes

No

Maybe

❖ Where did you first hear about cryptocurrency? *

social media

Youtube

News

Radio

Newspaper / magazine

❖ What is your level of understanding of cryptocurrency? *

Basic framework

Detailed knowledge

Just have an idea

No knowledge

❖ Do you trade / invest in Cryptocurrency? *

Yes

No

50
 ❖ In what ways do you use Cryptocurrencies? *

Investing

Trading

Transferring funds globally / locally

I don't use Cryptocurrency

❖ preference to choose Cryptocurrency as *

Currency

Investment tool

❖ Do you think Cryptocurrency is future *

It will survive and grow

Decline substantially

Its a bubble that will explode

Grow substantailly

Any other reason

❖ What is preventing you from using/trading/ investing in cryptocurrency *

Lack of knowledge

Legal Issues

Security Issues

Volatility

Lack of Confidence

❖ What do you think are major threat to cryptocurrency? *

Legal Issues

Volatility

Security Issues

No Central Authority

Require Expertise

51
 ❖ What do you think will help in the adoption of cryptocurrency? *

Education about cryptocurrency

Major banks and Major retail websites accepting cryptocurrency

Simplified procedure for cryptocurrency purchase

Improved government legislation

Advertising about cryptocurrency

More stable cryptocurrency price

Increased payment systems and processor

❖ Do you agree with regulation of Cryptocurrency by central authority *

Disagree

Neutral

Agree

❖ Do you agree with the current regulatory and infrastructural support for
cryptocurrency in the India *

Yes

No

Maybe

52
53