“A STUDY ON THE IMPACT OF CRYPTOCURRENCY ON

INVESTORS AND THE INDIAN ECONOMY”

A PROJECT REPORT SUBMITTED TO

VELS INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES
(VISTAS)
(Deemed to be university Este. U/s 3 of the UGC act, 1956)

In partial fulfilment of the requirement

For the award of the degree of
BACHELOR OF COMMERCE (CORPORATE SECRETARYSHIP)
Submitted by

KARTHICK KUMAR.P

(Reg.No:20149250)
Under the guidance of

Dr. A. M E E N A K S H I

M.com, M.Phil.,M B A ,PGDCA , Ph. D

Associate Professor

Department of Commerce (Corporate Secretaryship)

DEPARTMENT OF COMMERCE (CORPORATE SECRETARYSHIP)

APRIL 2023
 CERTIFICATE

This is to certify that the project report titled “A STUDY ON THE IMPACT
OF CRYPTOCURRENCY ON INVESTORS AND THE INDIAN ECONOMY
” is a Bonafide record of the work carried out and submitted by (KARTHICK
KUMAR.P) (Reg.No: 20149250) to the Department of Commerce (Corporate
Secretaryship) , School of Management studies and commerce, under VELS
INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES (VISTAS),
in partial fulfilment of requirements for the award of the degree of Bachelor of
Commerce (Corporate Secretaryship) for the year 2020-2023 under the
guidance of (Dr.A.MEENAKSHI), M.COM, M Phil, PGDCA, Ph.D

Dr.A.MEENAKSHI Dr.S. VENNILAA SHREE

M.COM, M Phil, PGDCA, Ph.D M.com, M.Phil, B. Ed, Ph.D.
ASSOCIATE Professor & Professor & Head
Head Department of Department of Commerce
Commerce (Corporate (Corporate Secretaryship)
Secretaryship)

INTERNAL EXAMINER EXTERNAL EXAMINER

 ACKNOWLEDGEMENT

I own sincere thanks to DR. ISHARI K GANESH, CHANCELLOR, VELS

INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES who has
imparted me sufficient support and confidence to complete this Project.

I own my sincere thanks to our Pro Chancellors, Vice President, Vice

Chancellor, Pro Vice chancellor, The Registrar, The Controller of
Examinations, Dean (Academic Research) of VELS INSTITUTE OF
SCIENCE TECHNOLOGY AND ADVANCED STUDIES (VISTAS).

I extend my gratitude towards Dr. S. VENNILAA SHREE,

M.Com, M.Phil.,B.Ed, Ph.D., Professor & Head, Department of Commerce
(CORPORATE SECRETARYSHIP), for the encouragement and support to complete
the project successfully.

I express my heartfelt thanks to Dr.A. MEENAKSHI M.COM,M Phil,MBA,PGDCA,Ph.D for

guiding me to complete the projecy in a successfully

I also thank all the staff members of commerce (Corporate Secretaryship)

department, VELS INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED
STUDIES for their support on several occasions during my work through their
valuable suggestions.

KARTHICK KUMAR .P
 DECLARATION

KARTHICK KUMAR.P (Reg.No:20149250), a student of B.COM (CORPORATE

SECRETARYSHIP), Department of Commerce VELS INSTITUTE OF SCIENCE

TECHNOLOGY AND ADVANCED STUDIES, hereby, declare that the project

work titled “A STUDY ON THE IMPACT OF CRYPTOCURRENCY ON

INVESTORS AND THE INDIAN ECONOMY” submitted to the VELS

INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES in partial

fulfilment of requirements for the award of the degree of Bachelor of

Commerce (CORPORATE SECRETARYSHIP) is a Bonafide research project

work carried out by me under the guidance of Dr.A.MEENAKSHI ,M.com.,M

Phil.,MBA,PGDCA,Ph.D, Department of Commerce (CORPORATE

SECRETARYSHIP). No part of the research project has been submitted for any

other degree or diploma in our university or any other institutions.

Place: Pallavaram

Date:

KARTHICK KUMAR .P
 TABLE OF CONTENTS
Chapter Contents Page no

CERTIFICATE

DECLARATION

ACKNOWLEDGEMENT

INTERNSHIPS

INTRODUCTION AND
I 1
DESIGN OF THE STUDY

REVIEW OF
II 33
LITERATURE

DATA ANALYSIS AND

III 39
INTERPRETATION

FINDINGS,
IV RECOMMENDATIONS 61
AND CONCLUSION

BIBLIOGRAPHY 65-68

APPENDIX - SURVEY
69-74
QUESTIONNAIRE
 LIST OF TABLES

Table Page
Title
No. No.
4.1 GSender Wise Classification 41
4.2 Occupation wise Classification 42
4.3 Age Wise Classification 43
4.4 Do you own cryptocurrency 44
4.5 How much , If at all have you heard or read about cryptocurrencies 45
such as bitcoin or Ethereum
4.6 How likely are you to invest in cryptocurrency this year 46
4.7 Which one do you think would be more profitable 47
4.8 Cryptocurrency has no tangible form, does that diminish the value 48
that you perceive about cryptocurrency
4.9 Unlike other currencies, cryptocurrency requires much less fees to 49
operate. Would this increase your interest in using cryptocurrency
4.10 In your opinion, which is more risky - investing in the stock market 50
or investing in cryptocurrency
4.11 If cryptocurrency providers created tangible coins or notes for its 51
users with Banks and ATMs readily available but remained non-
government regulated. Would this increase your interest in
cryptocurrency
4.12 Cryptocurrency is non-government regulated which offers users 53
more freedom. Would this increase your interest in using
cryptocurrency
4.13 If cryptocurrency is government regulated but remains Intangible, 54
would this increase your interest in using cryptocurrency
4.14 In 5 years, do you think cryptocurrency will be worth more or less 56
than it is today
4.15 How do you think cryptocurrency have impacted the economy of 57
India
 LIST OF FIGURES

Table Title Page

No. No.

4.1 Gender Wise Classification 41

4.2 Occupation wise Classification 42
4.3 Age Wise Classification 43
4.4 Do you own cryptocurrency 44
4.5 How much , If at all have you heard or read about 45
cryptocurrencies such as bitcoin or Ethereum
4.6 How likely are you to invest in cryptocurrency this year 46
4.7 Which one do you think would be more profitable 47
4.8 Cryptocurrency has no tangible form, does that diminish the 48
value that you perceive about cryptocurrency
4.9 Unlike other currencies, cryptocurrency requires much less fees 49
to operate. Would this increase your interest in using
cryptocurrency
4.10 In your opinion, which is more risky - investing in the stock 50
market or investing in cryptocurrency
4.11 If cryptocurrency providers created tangible coins or notes for 52
its users with Banks and ATMs readily available but remained
non government regulated. Would this increase your interest in
cryptocurrency
4.12 Cryptocurrency is non-government regulated which offers users 54
more freedom. Would this increase your interest in using
cryptocurrency
4.13 If cryptocurrency is government regulated but remains 55
Intangible, would this increase your interest in using
cryptocurrency
4.14 In 5 years, do you think cryptocurrency will be worth more or 57
less than it is today
4.15 How do you think cryptocurrency have impacted the economy 58
of India
 CHAPTER – I
INTRODUCTION AND DESIGN OF
THE STUDY

1.1 INTRODUCTION

1
 Countless discoveries and inventions have been made throughout our history.

Some of the developments have been minor, some of them have been major, some

have been short-lived, and other events have been more critical and longer-lasting.

There have been certain developments throughout our history that have been so vitally

important to humanity that they are considered the sole factor behind all of

humankind, collectively making progress and taking a critical and everlasting step

forward.

For example, consider how the creation of farming equipment and fertilisers

allowed for the exponential growth of food outputs from fixed pieces of land. Without

these inventions and discoveries, the world would not have been able to support the

explosive population growth that we have witnessed across the globe. It was only a few

hundred years ago that scientists and economists indicated the end of population

growth, due to the fact that food production just grew at numerical rates, doubling or

tripling every certain number of years, while populations grew at exponential rates,

expanding to the power of two or more during that same period.

At the time, this meant that sooner or later there wouldn't be enough food to feed

everyone unless more food could be obtained from fixed pieces of land every year.

Fortunately, this is precisely what happened. Science was able to deliver heavy farm

equipment, fertilisers such as ammonia, and other improvements so that food harvests

could keep up with the population growth rates. This allowed for more people to be

sustained in the same area of land as before. Without these developments, the world

would be a very different place today.

Similarly, the creation of antibiotics, penicillin, the introduction of air travel, ocean

freight, and the steam engine, and more recently, the sharing of information in the

2
Information Age that was made possible by the invention of microchips and transistors,

have all changed the world irreversibly. As a result of these innovations and

discoveries, we are more connected, better off, healthier, and have more accessible and

cheaper access to goods and services than ever before.

When it comes to the information age, things have progressed at breakneck

speed, ever since the first dot-com wave in the early to mid-90s. Everything from the

user interface tools and technologies that have defined how we interact and interface

with technology. Everything from payment solutions to banking solutions has

dramatically changed over the last 20 years.

The same can be said for social networks and primary email, along with the

advancements that have been made in fields of artificial intelligence (AI) and big data

analysis, both of which have an impact on everything from helping with governance to

online search. Collectively, we've gone from necessary solutions for all of the above to

having sophisticated software services that combine various aspects of technology to

deliver effective, robust, value- added, and seamless services to billions of people

around the world.

However, with all the progress comes new challenges. AI, big data, and the

ability of governments to implement mass surveillance initiatives, and the ubiquity of

technology all around have begun to pose serious ethical questions and technological

challenges. This leads to the question, where do you draw the line between legal and

big corporations and their relationships with private users, where is the world headed

illegal surveillance? How can we, as a society, trust the data usage collection and

manipulation practices of companies and governments when they aren’t transparent.

When it comes to the role of government?

3
 It is with this exciting and challenging background in mind that blockchain will

be discussed. In recent years, blockchain has become a popular technology and so

much more than the latest tech fad. It is, in the opinion of many subject area experts

and tech gurus, the next giant leap for humanity and something that will have a

significant impact on our children and us as the farming and healthcare developments

of the past had an effect on our great-great-grandparents more than a century ago. We

have now entered the new Information Age.

1.2 About the study

What is cryptocurrency

A cryptocurrency is a form of currency that has become popular over the last

several years. Cryptocurrency is created by using the encryption techniques of

computing and mathematics. These techniques allow us to transfer funds and verify that

the transfer did, in fact, occur. Another essential aspect of cryptocurrency is that it is

independent of governments and central banks, making them decentralised.

These days, many important banks are becoming increasingly involved with the

same kind of technology that underlies cryptocurrency. However, it is essential to

understand that any currency that arises from their endeavours won't be true

cryptocurrency because it will be controlled by the banks. The most reliable and most

dedicated advocates of cryptocurrency are determined that it will not be centralised.

How Did Cryptocurrencies Develop:-

Bitcoin is the most well-known cryptocurrency on the market. It has been the

recipient of hype, fame, and publicity. The general public has been fascinated by its

4
extraordinary increase in value over the last several years. They have been awe-struck

by the tales of significant wealth that has been generated with bitcoin, for those who

acquired it in its infancy, when it was cheap.

Despite its novelty, people quickly realise that bitcoin is genuine money. In addition to

bitcoin, there are many other cryptocurrencies, who like bitcoin, have had massive

increases in their dollar value. Legitimate governments and businesses are pursuing an

increasing involvement in cryptocurrency. Despite critics, the market for these

currencies is thriving.

Cryptocurrencies, Fiat Currencies, and Stocks:-

Fiat currencies are the currencies we use daily, like the dollar, yen, euro, and

renminbi. Despite having the word currency in the word cryptocurrency, they are more

similar to stocks and shares of the stock market than between fiat currencies and

cryptocurrency. When you purchase cryptocurrency, you get some of the coins for that

cryptocurrency, which acts like a technology stock and a digital entry into a ledger,

known as a blockchain.

What is Block chain technology

Blockchains are digital ledgers and can be formally defined as a

continuouslygrowing list of records that are linked tougher and secured using advanced

cryptography. In more simple terms, a blockchain is literally a chain of blocks. Each

record in the list of a blockchain’s chain is called a block that contains specific types

and pieces of information. Each block will usually include some sort of pointer as a

link to the previous block, transaction data, and a timestamp, which can take a variety

of forms.

5
 Another way to look at it is that a blockchain is much like a database where

each entry is linked to the previous and next entry. This means that the information

contained within the blockchain can't be changed, once a block with specific data is

added to the chain. Depending on the chain that you are looking at, there are often

useful tools for exploring that will allow you to scan the transaction data.

Blockchains are resistant to being modified because of their inherent design.

This allows blockchains to record transactions between different parties efficiently.

These transactions are not only verifiable but permanent as well. Once information is

recorded in a blockchain, the data cannot be altered after-the-fact without altering the

subsequent blocks by having the majority of nodes on the network agreeing to the

change.

This inability to change the data within a blockchain make illegal or unfair

actions almost impossible to carry out. If a hacker wished to alter information within a

blockchain, they would have to gain control of every node. This security is one of the

most useful characteristics of the blockchain.

Since blockchains are designed to be verifiable and permanent, they are

especially suitable for recording events, maintaining medical records, drawing up

agreements, fundraising, and keeping track of other documents.

Blockchain Basics:-

6
 Whether you are aware of it or not, you conduct business every day, even if you

don't work. At some point, everyone gets online and initiates some kind of transaction.

Whether it is purchasing something from Amazon or buying something from iTunes,

you are engaging in the business of blockchain technology.

Even though the term “blockchain” is relatively new, the technology has been around

for about a decade. The digitised ledger that Satoshi Nakamoto created in 2008 was the

basis for the spreadsheets that manage cryptocurrencies and other online trading

transactions. The technology is used in cryptography, which is how text is coded on the

Internet.

Cryptography is used in blockchain technology to create distributed trust

networks. This, in turn, allows any contributor to the system to operate the transactions

securely without having to obtain authorization from someone else in the digital ledger.

These transactions are then verified, approved, and then recorded in an encrypted

block. This block is saved intermittently and then connected to the previous block,

which in turn creates a chain.

Components of a Blockchain:-

Two main parts make up a blockchain. The first component is the decentralised

network. The decentralised network is what facilitates and verifies the transactions that

are made. Having blockchains on a decentralised network means that the software isn't

limited to one computer system. Instead, it can be controlled on multiple computer

systems, and more importantly, it isn't controlled by the government.

The second component is the indisputable ledger where the transactions are processed and

recorded in a location that is secure. This security makes it almost impossible for someone

who is not connected to the chain to make changes or steal information.

7
 Since there can be numerous contributors involved in any blockchain, any of the

contributors can control the information that is entered into the ledger. Since every

transaction is processed securely, and given a permanent time-stamp, it can become

challenging for another contributor to alter the ledger in any way.

Blockchain technology can be used for various computerised and internetbased

applications. One of these applications is smart- contracts. Smart contracts allow

businesses to automatically verify and execute agreements that function independently

in a secure environment. Blockchain technology acts as a middleman for implementing

all business deals, protocols, and programmed exchanges of information in smart

contracts. As more and more transactions are completed online, to not only run our

personal lives but professional lives as well, more and more deals are being signed and

created online.

Blockchain applications have begun to become increasingly popular in the medical

field in recent years. Researchers are now investigating these applications dealing with

digital identity, insurance records, and medical records. There are many medical offices

today that use some kind of digital machine to verify that the information they have on

file is, in fact, your information.

Types of Blockchain:-

There are three major types of blockchain. There are private blockchains, public

blockchains, and consortium blockchains. Public blockchains are created by the public.

Anyone can part Because there isn’t a single person in charge of these blockchains, decisions

are made by many decentralised agreement tools such as proof of work, which is a computer

algorithm that is used by cryptocurrencies like bitcoin. Public blockchains are open and

crystal clear in content, making it easy for anyone who looks at them to understand what they

are and what they can do.

8
 Public blockchains, on the other hand, are privately owned by an individual or

organisation. With public blockchains, there is a single, designated person in charge.

While there can be several contributors to this type of blockchain, the final transactions

are either approved or disapproved by the person in charge and then recorded.

The purpose of consortium blockchains, also known as federated blockchains, is

to remove the only autonomy given to just one contributor by the use of private

blockchains. This type of blockchain allows for more than one contributor to be in

charge. Instead, there is a group of companies or individuals that gather and make

decisions that benefit the entire network.

The Business opportunities:-

The 21st century has seen exceptional technological

advancement, specifically in terms of information technology. The latest discussions

about Blockchain technology demonstrate significant technological advancement. This

technology has grown to be among the most popular services in recent years.

Blockchain technology makes it feasible for two parties to have a financial exchange in

digital domains without having an intermediary validate the transaction. Being

decentralised in quality, a blockchain is extremely secure as no single user can change

or remove an entry in the blockchain. Due to its highly secure and encrypted core,

blockchain technology has been used as the basis for the world’s most popular

cryptocurrency, Bitcoin. Blockchain development technology is going to grow in the

fields of business, finance, banking; law, medicine, and real estate.

As it minimises the chances of theft, threats and hacking various cryptocurrency

use blockchain as a base. Along with that various industries out there prefer blockchain

development to make their service offering more secure and verified. Blockchain

9
development offers quick data transfer contract management, audits the origin of a

product and even enhances the voting platforms as well. The core functionality of

verification and traceability lure various industries to utilise their offering. Even though

you want to enhance your service offering through blockchain development, you won't

be able to do it easily. Blockchain development deals with various advanced

technologies such as Artificial intelligence, machine learning, NFT and various others.

So, it is a must for you to find a reliable partner that can offer precise solutions

integrating all the required third-party solutions. Blockchain development companies in

India have a reputed name when it comes to dealing with advanced technologies. To

help you decide on your blockchain development company partner, the team of

TopSoftwareCompanies.co has listed the top most reliable blockchain development

companies in India in 2023. All the development companies on the list belong to

different cities in India, like Delhi, Pune, Bangalore, Ahmedabad, Mumbai, Jaipur, and

many others. The listed companies provide top-notch blockchain development

solutions to worldwide clients leveraging their notable years of experience and

expertise.

Other Business opportunities:-

Growing Money

Many experts believe that blockchain technology will become the way of the

future. Cryptocurrency is rapidly increasing because people want to put their money in

a place that is not only safe and secure, but that will also gain value like a savings

account. However, savings accounts aren't as secure as they would like. By the end of

2017, future markets had already been created for bitcoin. That was also the year the

finance industry saw a dramatic increase in Initial Coin Offerings, (ICO). In the last

10
year, ICOs have gained more money than venture capital investments. While

cryptocurrencies continue to improve in their abilities to quickly process transactions,

eventually they will compete against credit card companies processing transactions.

The Cloud and Blockchain

At some point, everyone has used the cloud to back up data that they don't want to

lose. If you didn't know, the cloud actually runs on a blockchain. Experts say that we have

started to take luxury for granted. In the past, you couldn't merely click a button and

automatically save data to a backup site like iCloud or OneDrive. Instead, you were required

to transfer the information on a compact disk or flash drive. Then, you would have to take

the disk or flash drive to another computer to download the data.

While you can still do this today, there isn't a guarantee that this type of

technology will last. Like the floppy disks of the past, compact discs and flash drives

may become obsolete, but internet saving applications will always be updated because

we now live in a tech-savvy world.

Blockchain and Gaming

eSports and online fantasy sports have grown significantly over the last decade with

more and more people creating online fantasy sports teams. Online games, like Fantasy

Football, were some of the first sites to adopt the earliest versions of bitcoin and other

cryptocurrencies. They also use blockchain technology to run and keep up with the

gaming technology.

The uses of blockchain technology don't just stop with fantasy sports. The most

popular smartphone applications to download today are games. This is why, as the

technology grows, more developers will likely make use of blockchains, as well as

cryptocurrency

11
Supply Chain Management and Blockchain

Blockchain technology will also benefit supply chain management by providing

a way to trace goods while at the same time being cost effective. For example, sending

packages through the United Parcel Services from one business to another. In the past,

someone had to call to find out where their box was if it hadn't arrived when it was

supposed to. Today, you are provided with a tracking number that allows you to see

where the package you sent or are waiting for is in transit, which creates a blockchain.

Blockchain technology has made it easier for businesses to do business together

because it has dramatically simplified the production process, and transfer process, as

well as the verification and payment methods used.

Blockchain Technology and Quality Assurance

In business, mistakes happen, no matter how careful you are and how closely

you follow processes and procedures, and it can be challenging to pin down how the

mistake occurred. With blockchain technology, mistakes and errors can be traced back

to the point of origin. Not only does this make it easier to investigate mistakes, but it

also saves companies time and money.

What is decentralisation

In blockchain, decentralisation refers to the transfer of control and

decisionmaking from a centralised entity (individual, organisation, or group thereof) to

a distributed network. Decentralised networks strive to reduce the level of trust that

participants must place in one another, and deter their ability to exert authority or

control over one another in ways that degrade the functionality of the network.

12
What is Defi

Decentralized finance (DeFi) is an emerging financial technology based on secure

distributed ledgers similar to those used by cryptocurrencies. In the U.S., the Federal Reserve

and Securities and Exchange Commission (SEC) define the rules for centralized financial

institutions like banks and brokerages, which consumers rely on to access capital and

financial services directly. DeFi challenges this centralised financial system by empowering

individuals with peer-to-peer digital exchanges.

DeFi eliminates the fees that banks and other financial companies charge for

using their services. Individuals hold money in a secure digital wallet, can transfer

funds in minutes, and anyone with an internet connection can use DeFi

1.5 What is NFT

Non-fungible tokens (NFTs) are assets that have been tokenized via a

blockchain. They are assigned unique identification codes and metadata that distinguish

them from other tokens.

NFTs can be traded and exchanged for money, cryptocurrencies, or other NFTs

—it all depends on the value the market and owners have placed on them. For instance,

you could use an exchange to create a token for an image of a banana. Some people

might pay millions for the NFT, while others might think it worthless. Cryptocurrencies

are tokens as well; however, the key difference is that two cryptocurrencies from the

same blockchain are interchangeable—they are fungible. Two NFTs from the same

blockchain can look identical, but they are not interchangeable.

13
1.3 FUTURE IN CRYPTOCURRENCY

The global crypto ecosystem has grown tremendously in the past three years. More

than 200 million users are estimated to have an exposure in the asset class. About 10%

of this userbase is from India. Despite regulatory uncertainties, Indian investors have

shown significant interest in the space. Many Web 3.0-based businesses have also

started offering services that cater to the global ecosystem. Today, we envision a role

that Web 3.0 and crypto services can play in India and how we must prepare for this

Timely regulations will build a vibrant and transparent ecosystem

The crypto asset class has potential to give disproportionate returns to investors

over time in a democratic way. This has not been the case with any other technology

based asset in the past. For example, a US citizen had earlier access to global IT stocks

in 2000s before Indians did.

It is now up to the Indian government to encourage this ecosystem in a

compliant manner. The government has taken great strides already. Be it a TDS on

sales or the recent anti-money laundering (AML) provisions under PMLA, the

messaging from the government has been consistent: invest fairly and declare the

profits.

However, India-based exchanges, which have been the most compliant, have

experienced a significant drop in volumes since July 2022 as investors migrated to

using non-compliant global exchanges for their trades. This must be addressed quickly

Indian businesses that operate with local offices are best suited to be the partner of

choice for the government and the ‘platform of trust’ for the investors. Given that

14
services offered by Indian platforms are on par with global exchanges in terms of

products and ease of use, they must be actively encouraged.

The future is blockchain

Blockchain, the core technology behind crypto and Web 3.0, is already

implemented across industries and is touted as the base of the is already implemented

across industries and is touted as the base of the next big Metaverse trend.

In this context, crypto and Web 3.0 services originating from Indian businesses

can serve a multitude of use cases globally. India will no longer have to be an offshore-

based economy but a leader of an industry.

1) This will attract foreign investments into India and

The benefit of these are plenty

2) The sector will create new jobs that will serve

the economy and the youth well.

This needs a consistent approach in terms of education and in incentivizing businesses.

We must prepare our youth for this 5-10 years ahead.

Digital transactions and the eRupee

Another key benefit of crypto is the ability to enhance payments infrastructure

in terms of time and cost. Cross-border payments via crypto have already given a boost

to some countries. Bitcoin, the beacon of crypto asset class, has been at the forefront of

this change over the years. Now, central bank digital currencies (CBDCs) are being

regarded as a means for governments to enter the ecosystem and gain visibility.

India’s retail CBDC (CBDC-R) started its pilot stage in December 2022 with around

50,000 retail participants across four cities: Mumbai, New Delhi, Bangalore, and

15
Bhubaneswar. Users can transact with eRupee through a digital wallet offered by the

participating banks which are stored mobile phones. So far, more than INR 7-lakhworth of

transactions have been facilitated in the retail pilot.

The eRupee is expected to have several benefits, including faster and cheaper

transactions, improved financial inclusion, and reduced reliance on cash. It is also

expected to make it easier for the government to track transactions and crack down on

money laundering.

The eRupee can naturally become the de facto onramp for crypto and Web 3.0

transactions – i.e. investors can transact with crypto and NFTs only via eRupee. This

can also be extended to sectors such as online gaming. With the rise of blockchain

technology, we expect the e-Rupee to be integrated into decentralized applications,

making it an integral part of the Web 3.0 ecosystem in the future.

1.4 PROBLEM DEFINED

While blockchain & cryptocurrency holds tremendous potential for creating

new financial, supply chain and digital identity systems, it's often erroneously seen as a

panacea for business problems.

1. Understanding cryptocurrency takes time and effort

Cryptocurrencies can take a while to get your head around. If you’re not a

digital native, the concept of cryptocurrency (let alone the blockchain) can feel

anything but second nature. And trying to invest in something you don’t really

understand is itself a risk. There are plenty of online resources available to help

you, but you’ll still need to dedicate some time to truly understand the pros and

cons of investing in cryptocurrency.

16
 2. Cryptocurrencies can be an extremely volatile investment

cryptocurrency market fundamentally thrives on speculation, and its relatively small size makes it

more vulnerable to price fluctuations. That in turn can wreak havoc with the value of coins—one

of the major disadvantages of cryptocurrency.While the price of a cryptocurrency can spike to

dizzying highs (with associated benefits for investors!) they can also crash to terrifying lows just

as quickly. So if you’re looking to make stable returns, this might not be the best bet.

3. Blockchain has an environmental cost

At least, the way it is being used today, it does. Blockchain relies on encryption

to provide its security as well as establish consensus over a distributed network. This

essentially means that, in order to “prove” that a user has permission to write to the

chain, complex algorithms must be run, which in turn require large amounts of

computing power. Of course, this comes at a cost. Taking the most widely known and

used blockchain as an example – Bitcoin – last year it was claimed that the computing

power required to keep the network running consumes as much energy as was used by

159 of the world’s nations.

Yes, Bitcoin’s blockchain is a hugely valuable network – with a current market

capacity at the time of writing of over $170 billion – so sophisticated and

computationally intense security is essential. Smaller scale blockchains – such as those

that an rganization may deploy internally to securely monitor and record business

activity – would consume a fraction of that. Nevertheless, it’s an important

consideration and the environmental implications as well as the energy costs can’t be

ignored

17
1.5 RELEVANCE OF THE STUDY
This study is relevant to understand deeply the impact of cryptocurrency on

investors decision making and the economy.

It plays vital role in financial investments nowadays and helps raising digital capital and
does

1. Affects the growth of the economy.

2. To meet the current requirements of the digital era and influence decisions

of the investors.

3. Analysing the strengths and weaknesses of cryptocurrency in India.

4. Analysing the current position of cryptocurrency and its investors.

5. Providing information about the economic position of the economy post

introduction of cryptocurrency.

6. Studying the change cryptocurrency has made on investors and economy.

1.6 OBJECTIVES OF THE STUDY

The objectives of this study are as follows:

1. To learn the impact of cryptocurrency on Indian economy

2. To study the current status of cryptocurrency in India and the future it holds

3. To understand the significance of cryptocurrencies according to the perception

of investors.

4. To analyse the perception of investors towards cryptocurrencies.

5. To study the factors considered by the investors & those which ultimately influence

him while investing.

6. To predict the future prospects of the cryptocurrency investment market.

7. Examining the current profitability of various cryptocurrencies. Analysis helps

18
 in finding out the earning capacity and returns of cryptocurrencies.

1.7 NEED OF THE STUDY

1. This study will help us to gain knowledge about cryptocurrencies and its impact

and will help us understand various topics such as-

2. Will India have any positive financial leverage by the usage of Bitcoin?

3. Should India say yes to Bitcoin?

4. The crafting of this study is to make us have better understanding towards-

○ Bitcoin, Lakshmi Coin and Cryptocurrency.

5. This study provides an opportunity to develop analytical skills, technical skills

and give exposure towards digital currency revolution.

6. To give an overview of the cryptocurrency market in India.

7. To find out the financial position of the company.

8. To find out the profitability of the company.

9. To know the assessing operating efficiency.

1.8 SWOT ANALYSIS

Bitcoin strengths: cryptocurrency can’t be tracked or stolen.

Bitcoin uses blockchain (a peer-to-peer) network between the sender and the receiver.
Only these two parties are involved. It’s unlike any other method of transferring currency —
which involves a third party, like a bank. A middleman is prohibited from Bitcoin transactions.
And since that pesky third party doesn’t exist, it makes Bitcoin a tax-free currency. The

government doesn’t control or regulate Bitcoin. For most Bitcoin users, this is an insane positive

because it’s not folly to economic turmoil. Bitcoin’s worth is agreed upon by the sender and the

19
receiver. Not an institution. Even if the economy crashes, Bitcoin can survive. Surprisingly, this

isn’t why Bitcoin’s popularity skyrocketed within the last few years.

The real strength is the secrecy.

Every person in the Blockchain network has a private wallet address. Trading

Bitcoin is fully anonymous.It’s 100 percent untraceable. Unless you decide to make

your wallet address — but the majority of users don’t. Because the anonymity makes

your financial data fully hidden.

A unique PIN number assigned to each Bitcoin masks the identity of the seller.

Once the Bitcoin is sold, the PIN changes anew. At this point, only the buyer knows the

PIN. It’s irreversible, unless the current owner decides to change the ownership back.

Although this means nothing can be done once the Bitcoin is sent, it also means

you can’t steal this currency. You can steal your physical wallet. You can steal credit

card info and hijack your online bank account. But you can’t steal Bitcoin. It’s because

of this increased security that pushes people towards cryptocurrency.

Bitcoin weaknesses: crippling slow transactions and accessibility loss.

Bitcoin transactions aren’t as fast as they were a few years ago. This is one of

the downsides of Blockchain: the more people use it, the more Blockchain limits your

transactions speeds.

Basically, the blocks get bigger the more it’s in use. Making the whole process

clunky and slow. Until this the problem is resolved, it’s unlikely Bitcoin currency will

usurp conventional credit card usage.

20
The system isn’t the only issue.

Don’t forget about the Bitcoin wallet password problem. Since the transactions

are encrypted, recovering a lost password isn’t possible. You’d be surprised how often

people forget their password and lose access to their Bitcoins. In fact, one man bought a

few Bitcoin years ago when it was dirt cheap. Now it’d be worth millions... if only he

could find his password to his wallet. And what about the survivability of Bitcoin? The

value of Bitcoin has shifted relentlessly over the years. And despite the rocky nature,

media the pushes out stories claiming Bitcoin is the future of money. It’s just like

stocks, however; unpredictable and unreliable. Tomorrow, the value could skyrocket.

The day after, it may plummet. The reliability of this currency is too questionable to

replace traditional money.

Bitcoin opportunities: Safety from compromising data breaches

As a society, we’re moving away from physical money in favor of cashless

currencies. In fact, big names like Amazon are already accepting Bitcoin as payment

for their goods. If companies the size of Amazon are recognizing Bitcoins’ viability,

it’s safe to assume others will follow. And what about the growing hostility between

the public and the banking institutions?

People are looking for safe, secure, and practical means to avoid using banks.

Data breaches, involving customer data, is consistently occurring with brands like

Facebook and Wells Fargo. How long until the breaches steal credit card info? No one

wants to find out. And others are moving towards Bitcoin. Even with the hangups, it’s

safe. Anonymous. And doesn’t involve third parties.

21
And the opportunities don’t stop there.

The blockchain is a phenomenal technology with much promise. The blocks

may be able to keep data like criminal records, birth certificates, and public records

private. It may pave the way for impenetrable encryption. That’s something the masses

are leaning towards for data protection.

Bitcoin threats: the anonymity against governments and banks.

 Anonymity is a benefit. An opportunity. But it’s also a problem. In the

wrong hands, anonymous buying is dangerous.

 Knowing the transaction is untraceable will attractthe attention of criminals.

Because let’s be honest: the more people accept Bitcoin, the more it’ll likely be used for more

nefarious reasons.

 It’ll also be a problem for the government or law enforcement, after all.

If more criminals adopt Bitcoin into their illegal purchases, law

enforcement will face a challenge in finding and prosecuting these

criminals. As such, we may see more policies and laws regarding

cryptocurrency. Although it may be difficult to enforce thanks to the

anonymity, the government will still try.

 People fear the consequences of these bills. New tech policies miss the

mark. Not enough government officials understand the implications of

using Blockchain and cryptocurrency. Instead of learning, they’re more

likely to slap on a bill and hope for the best.

 Bitcoin isn’t the only cryptocurrency on the market. After its rise in

popularity, alternatives like Ethereumand Peercoin hit the markets. If the

value of these alternative skyrockets, Bitcoin may be in trouble. To be

honest, the overall value of cryptocurrency and lack of reliability is a

22
 threat to Bitcoin and its competitors. And just because cryptocurrency

appears infallible now, doesn’t mean it will in the future. As more

information about it surfaces, the holes will reveal themselves. People,

such as criminals, will takeadvantage of the issues ASAP.

BENEFITS OF CRYPTOCURRENCY

Job opportunities– With many startups re-entering the market, competition for

top talent in the area of blockchain technology and cryptocurrencies may increase.

From blockchain developers to programmers, production engineers and project

managers, there will be many suitors for top talent in the field of blockchain. Industry

consultants, advertisers, content developers and group administrators among others will

now have a major role to play in the national embrace of cryptocurrencies that will now

be sought by many startups. The RBI will now be encouraged to help control the world

of opportunities that cryptocurrencies generate. The stance made clear by the Supreme

Court should that the RBI rethink its restrictive approach to cryptography and then

come up with more balanced and well-thought-out rules to protect the public interest

and that of other ecosystem stakeholders. The RBI can take a leaf out of its global

peers, as many central banks have launched their cryptocurrencies in other countries.

Nonetheless, the expectation here is that the latest measures will press for more

acceptance and tighter enforcement.

Immunity from theft – At present, the financial system, and the resultant

economy, is not immune to robberies or fraud. As we know the planet is becoming

more vulnerable to complex leaks and hacks. With several ransomware attacks, data

leaks from top-notch banks and credit card companies, news headlines have been abuzz

in the last few years. India was going digital at the time, the base of which was built on

Aadhaar authentication, Jan Dhan accounts etc. However, the same does give rise to

23
flaws in technology, with criminals planning to break the authentication mechanism of

Aadhaar or Jan-Dhan accounts. In making cryptocurrencies all verified transactions

must be deposited in a public ledger. To ensure the legitimacy of record keeping, all

identities of the coin owners are encrypted. You own it because the currency is

decentralized. It has no power over either the government or bank.

Accessibility – Blockchain is the reason why crypto-currency is worth something. Ease

of use is the reason why there is a high demand for crypto-currency. All you need is a

mobile screen, an internet connection, and you easily make payments and money

transfers to your accounts. There are more than two billion people with access to the

Internet who cannot use conventional forms of trade. These people are clued-in to the

crypto-currency market.

Global economies Crypto-currency presents Indians with a golden opportunity

to be on par with the global economy, particularly the present burgeoning millennial

generation. A cryptocurrencies-led economy is a decentralised economy. There is

plenty of time and money to secure third-party approvals, and all the time and energy

spent in negotiations will no longer be needed when buying, for example, a house etc.

Considering some of the trailblazing and epoch-making trends of the past, including the

emergence of the internet, the technological economy, the creation of Silicon Valley

etc., India has just sought to balance the pace of global innovations.

CRITICISM OF CRYPTOCURRENCY

Criticism of cryptocurrency

The semi-anonymous aspect of cryptocurrency transfers makes them ideal for a

variety of illegal practices, such as money laundering and tax evasion. Cryptocurrency

24
supporters, though, also strongly respect their anonymity, citing privacy advantages

such as protection for whistleblowers or dissidents living under oppressive regimes.

Some cryptocurrencies are more intimate.

The cryptocurrency form is not exempt from any financial and security issues. I

reviewed many studies and cryptocurrency networks and even explored several markets

for selling cryptocurrency to investigate the difficulties and problems that occur in this

interactive phenomena.

Money laundering

Money laundering is one danger that is highly likely to increase with the usage

of VC especially with platforms that allow users to exchange virtual currency with real

money. In realistic situations, the police detained a group of 14 people in Korea in 2008

for stealing $38 million from virtual currency transactions. The group translated the

$38 million that gold farming produces from Korea into a paper firm in China as

purchasing payments.

Black market

Perhaps one of the biggest drawbacks and security issues affecting blockchain is

its potential to promote criminal activity. There are several anonymous trades on the

grey and black markets denominated in Bitcoin and other cryptocurrencies. For

example, Bitcoin was used by the notorious “dark web” platform Silk Road, promoting

illegal drug sales and other criminal acts before being shut down in 2014.

Cryptocurrencies are now highly common money-laundering devices. They unlawfully

acquired money by funnelling through a “safe” conduit that conceals the origins. For

example, when a gamer wants to leave a game, he/she may want to sell the virtual

currency that he/she owns by selling it in the game forums. The way payments are

25
collected is dangerous because many fraudulent users can not complete the payment, or

challenge after payment. They will then get their money back plus the virtual currency.

Tax evasion

Since national governments do not oversee cryptocurrencies, cryptocurrencies

typically remain outside of their direct jurisdiction, attracting tax evaders naturally. In

Bitcoin and other coins, several small companies pay workers. They do so to reduce

payroll tax responsibility and to help avoid income tax obligation for their workers.

Even they embrace tokens from online traders to attempt to escape selling and income

tax responsibility.

No refunds

The notion of such an arbitrator violates the decentralizing spirit at the heart of

the new theory of cryptocurrencies. What this means is that if you’re robbed in a

crypto-currency deal you don’t have someone to turn to. Although cryptocurrency

miners play a role in cryptocurrency transactions as quasi-intermediaries, they are not

responsible for arbitrating conflicts between the transacting parties. An example is to

pay upfront for an item that you never get. Large payment providers such as

MasterCard, Visa and PayPal also move in to help solve conflicts between buyers and

sellers. Their method of paying for, or refunding, is intended to avoid vendor fraud.

Although some newer cryptocurrencies seek to resolve the surrounding chargebacks or

refunds problem, the solutions remain incomplete and still unproven.

Data loss

Considering a virtually uncrackable source code, impenetrable authentication

protocols (keys) and sufficient security protections (which Mt. Gox lacked), keeping

money in the cloud or a physical data storage unit is better than in a backpack or back

26
pocket. Also, those who store their data in a single cloud provider will risk failure if the

server is physically compromised or removed from the internet. The early advocates of

crypto-currency believed that, if properly protected, digital alternate currencies agreed

to helpa definitive step away from traditional cash, which they find to be unreliable and

potentially dangerous. All this means cryptocurrency consumers are taking reasonable

and appropriate measures to avoid data loss. For example, if their computer is lost or

robbed, the consumers who store their private keys on single physical storage devices

will incur a permanent financial loss.

High price and not exchangeable

The most popular cryptocurrencies, those with the highest dollar market

capitalisation, have dedicated online exchanges allowing direct exchange for fiat

currency. The remaining cryptocurrencies have no dedicated online exchanges. Many

cryptocurrencies have few extraordinary units and are concentrated in the hands of a

handful of individuals (often currency developers and close associates). For fiat

currencies, they are therefore not explicitly exchangeable. Instead, before the fiat

currency conversion, consumers could turn them into more widely used

cryptocurrencies, including Bitcoin. These holders manage currency stocks efficiently,

making them vulnerable to fluctuations in wild valuation and simple manipulation. This

suppresses competition for some less-used cryptocurrencies, and thus the valuation of

others.

1.9 HYPOTHESIS

Hypothesis 1-

27
H0- There is a positive impact of cryptocurrency on the Indian economy. H1-There

is a negative impact of cryptocurrency on the Indian economy.

Hypothesis 2

H0 - cryptocurrencies have significantly impacted the investment decisions of

investors.

H1- cryptocurrencies have the least impact on investment decisions of investors.

1.9 METHODOLOGY OF THE STUDY

TYPE OF RESEARCH USED

Research can be classified in many different ways on the basis of methodology

of the research, the knowledge it creates, the user groups, the research problem it

investigates, etc. Following is the methodology that we have used in research:

Quantitative Research:

In natural and social sciences, and sometimes in other fields, quantitative

research is the systematic empirical investigation of observable phenomena via

statistical, mathematical, or computational techniques. The objective of quantitative

research is to develop and employ mathematical models, theories, and hypotheses

pertaining to phenomena. The process of measurement is central to quantitative

research because it provides the fundamental connection between empirical observation

and mathematical expression of quantitative relationships.

Quantitative research is generally closely affiliated with ideas from 'the scientific method',

which can include:

28
1 The generation of models, theories and hypotheses.

2 The development of instruments and methods for measurement.

3 Experimental control and manipulation of variables.

4 Collection of empirical data.

5 Modelling and analysis of data.

29
30
TYPES OF DATA USED

Here, we have used both Primary and Secondary Data while conducting research.

31
What is primary data?

Primary data is the data collected directly by the researchers from main sources

through interviews, surveys , experiments, etc. primary data are usually collected from

the source –where the data originally originated from and are regarded as the best kind

of data in research. In this project questionnaire method for survey is used for

collection of primary data.

What is Secondary Data?

Secondary data is the data that have been already collected by and readily

available from other sources. Such data are cheaper and more quickly obtainable than

the primary data and also may be available when primary data cannot be obtained at all.

Here, various websites,books and journals are been referred for secondary data .

32
 CHAPTER – II
REVIEW OF LITERATURE

33
REVIEW OF LITERATURE

Review of literature is very important aspect for every research report without thisshould not

carry out any research reports. The literature review helps the researcher todrawn the appropriate

study related variables. Based on the literature review furtherstudy should be carried out.

Therefore this study drawn some literaturereview related to Cryptocurrency.

Fletcher, E., Larkin, C., Corbet, S. (2021)

Countering money laundering and terrorist financing: A case for bitcoin regulation The paper

deals with the inconsistency of effective classification of bitcoin (on the one hand currency, on

the other hand, assets) which leads to bureaucratic war between different regulatory bodies,

where it is proven that criminals and terrorists use the unique properties of Bitcoin terrorist

financing and money laundering schemes.

Adams, M.T., Bailey, W.A. (2021).

Emerging Cryptocurrencies and IRS Summons Power: Striking the Proper Balance between

IRS Audit Authority and Taxpayer Privacy This article examines the history of the IRS

summons power, which is an attempt by the tax administration to try to use a huge amount of

customer data from Coinbase, a cryptocurrency exchange platform

Ramassa, P., Leoni, G. (2021).

Standard setting in times of technological change: accounting for cryptocurrency holdings

This article considers the regulatory issues arising from disruptive technological

34
innovations (i.e. cryptocurrency) and explores how the International Accounting Standards

Board (IASB) has dealt with the emerging issue of accounting for cryptocurrencies

Jalal, R.N.-U.-D., Alon, I., Paltrinieri, A. (2021)

A bibliometric review of cryptocurrencies as a financial assetThis paper researches: (1) the

determinants of cryptocurrency returns, (2) the efficiency of cryptocurrencies, (3) tests

of portfolio diversification and sheep flock behavior, and (4) the regulation, governance, and

socio--economic impact of cryptocurrencies.

Bagus, P., de la Horra, L.P. (2021).

An ethical defense of cryptocurrencies This paper examines the advantages and disadvant-

-ages of cryptocurrencies vis-a-vis central bank fiat money, analyzes cryptocurrencies as

facilitators of tax evasion and the ethical implications arising therefrom, and explores

the use of cryptocurrencies for nefarious consumption

Yee, T.S., Heong, A.Y.K., Chin, W.S. (2020).

Accounting treatment of cryptocurrency: A malaysian context This research examines factors

that affect the accounting treatment of cryptocurrencies in Malaysia

Kimani, D., Adams, K., Attah-Boakye, R., Frecknall--Hughes, J., Kim, J. (2020).

Blockchain, business, and the fourth industrial revolution: Whence, whither, wherefore, and

how? Authors analyse the prospects of blockchain for various business functions, including

banking and the capital markets, corporate governance, international trade, and taxation

35
Catton, J.L. (2020).

Cryptoliquidity: the blockchain and monetary stability This paper aims to investigate

whether cryptocurrencies present an opportunity to profitably implement rules that

promote macroeconomic stability but also investigates the possibility of reduction in taxes

placed on the use of cryptocurrency and cryptocurrency protocol

Hairudin, A., Sifat, I.M., Mohamad, A., Yusof, Y. (2020)

Cryptocurrencies: A survey on acceptance, governance and market dynamics This research

deals with a public

Barth, J.R., Herath, H.S.B., Herath, T.C., Xu, P. (2020)

Cryptocurrency valuation and ethics: a text analytic approach This paper examines the extent

to which ethical considerations associated with the use of cryptocurrencies affect the valuations

attached to such currencies but also explores ethical and unethical behaviour associated with

the use of cryptocurrencies due to the lack of its regulation

Drobyazko, S., Blahuta, R., Gurkovskyi, V., Marchenko, Y., Shevchenko, L. (2019)

Peculiarities of the legal control of cryptocurrency circulation in Ukraine This paper discusses

the issues of the legal control of cryptoairrency in the system of civil rights under Ukrainian

lawʼ and bills submitted to the Parliament of Ukraine.

Silva de Souza, M.J., Almudhaf, F.W., Henrique, B.M., Sobreiro, V.A., Kimura, H.(2019).

Can artificial intelligence enhance the Bitcoin bonanza This paper investigates how Machine

36
Learning (ML) techniques perform in the prediction of cryptocurrency prices but also connects

it with the accounting process.

Ram, A.J. (2019).

Bitcoin as a new asset class The author explores the understanding and classification of bitcoin

-related to its regulation

Chornous, Y., Denysenko, S., Hrudnytskyi, V., Turkot, O., Sikorskyi, O. (2019)

Legal regulation of cryptocurrency turnover in Ukraine and the EU The paper explores and

investigates the legal status of cryptocurrencies

Salawu, M.K., Moloi, T. (2018)

Benefits of legislating cryptocurrencies: Perception of Nigerian Professional Accountants

This research wants to ascertain the view of Nigerian Professional Accountants towards

legislating cryptocurrency in Nigeria, where the researchers concluded that the legislation

of Cryptocurrency or its modified form by the Federal Government of Nigeria is desirable

for the protection of her economy as well as the interest of her citizens

Ram, A.J. (2018)

Taxation of the Bitcoin: initial insights through a correspondence analysis. This paper presents

a conceptual approach for developing a taxation policy for Bitcoin, using a multi-jurisdictional

analysis.

37
Holub, M., Johnson, J. (2018).

Bitcoin research across disciplines Paper deals with Bitcoin under a few areas such as technical

fields, economics, law, public policy, finance, accounting, and others.

Smith, S.S. (2018).

Implications of next step block-chain applications for accounting and legal practitioners: A case

study The paper explores the implications that blockchain technology and cryptocurrencies have

on authentication and compliance reporting.

38
 CHAPTER – III
ANALYSIS AND INTERPRETATION
OF DATA

39
 DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS:-

Analysis of data is a process of inspecting, cleaning, transforming, and

modelling data with the goal of discovering useful information, suggesting conclusions,

and supporting decision making.

The process of evaluating data using analytical and logic reasoning to examine each

component of data provided... Data from various sources is gathered, reviewed and

then analysed to form some sort of finding or conclusion.

Why do we analyze data?

The purpose of analyzing data is to get usable and useful information. The analysis,
irrespective of whether data is quantitative or qualitative, may:

1. Describe and summarize the data.

2. Identify relationships between variables.

3. Compare variables.

4. Identify differences between variables.

5. Forecast outcomes.

The research method used was survey through questionnaire.

A sample size of 102 people was taken.

These are the questions asked in the survey questionnaire and the results are as follows

40
4.1 Gender Wise Classification

4.1 Table

Gender
No. Of Respondents Percentage

Male 45 44.1

Female 57 55.9

Total 102 100.0

Interpretation:-

There are total responses of 102 out of which 55.9% are female & 44.1% are male.
There are more responses from female than male

4.1 Diagram

41
4.2 Occupation wise Classification 4.2
Table

Occupation No. Of Percentage

Respondents

Student 71 69.6

Employed 23 22.5

Unemployed 8 7.8

Total 102 100.0

Interpretation:-

The above table shows, 69.6% of the respondents belong to the students,22.5%

of the respondents belong to the employed group and 7.8% are responses from the

unemployed group. This shows that student are more aware of further & current affairs

4.2 Diagram

42
4.3 Age Wise Classification

4.3 Table

Age No. Of Respondents Percentage

18-24 76 75.0

24-30 6 5.9

30-36 7 6.9

Above 36 13 11.8

Total 102 100.0

Interpretation:-

The above table shows, 75.5 percent of the respondents belong to the age group

of 18-24 years, and 11.8 percent of the respondents belong to the age group of above 36

years. 6 percent of the responses from 24-30 age group & 7 percent of the responses

from 30-36 age group. This shows that age group 18-24 & 36 age group are more

aware of current FIGURE 4.3

43
4.4 Survey on do they own cryptocurrency:-

4.4 Table

owns cryptocurrency No. Of Respondents Percentage

Yes 29 28.4

No 73 71.6

Total 102 100.0

Interpretation:-

The above figure shows that only 28.4% have owning a cryptocurrency &

71.6% have said no.As most of the people from the sample were learning students

majority of them did not own any type of cryptocurrency, yet there are some who did

own cryptocurrency

4.4 Diagram

4.5 How much , If at all have you heard or read about cryptocurrencies such as bitcoin or
Ethereum

44
4.5 Table

read about No. Of Respondents Percentage

cryptocurrencies

A lot 26 25.5

Some 36 35.3

Not much 30 29.4

Heard about it right now 10 9.8

with this survey

Total 102 100.0

Interpretation:-

As shown in the above figure Majority of the people from the sample are aware

about the concept of cryptocurrency and have good knowledge about it as most of them

are learning students and people of the current generation.

4.5 Diagram –

4.6 How likely are you to invest in cryptocurrency this year ? 4.6 Table

45
invested in cryptocurrency No. Of Respondents Percentage

Extremely likely 14 13.7

very likely 18 17.6

somewhat likely 33 32.4

not at all likely 37 36.6

Total 102 100.0

Interpretation: -

Most of the people are somewhat not likely to invest in cryptocurrency this year as

shown in the above figure and some are considering to buy cryptocurrency this year.

4.6 Diagram

4.7 Which one do you think would be more profitable?

4.7 Table

Profitable No. Of Respondents Percentage

46
stock market 40 39.2

Cryptocurrency 20 19.6

both are equally 42 41.2

profitable

Total 102 100.0

Interpretation: -

As shown in the above figure, 41.2% of the people believe that both are equally

profitable. And 39.2% of the people say that the stock market is more profitable to

invest than cryptocurrency as shown in the result. 4.7 Diagram –

4.8 Cryptocurrency has no tangible form, does that diminish the value that you perceive

about cryptocurrency? 4.8 Table

Cryptocurrency has no No. Of Respondents Percentage

47
tangible

Yes 18 17.6

No 26 25.5

Maybe 53 52

Indifferent( unaffected ) 5 4.9

Total 102 100.0

Interpretation: -

The intangibility of cryptocurrency did not strongly affect the majority of the

people and had mixed results. As shown in above figure that 52% of people are ready

to try emerging cryptocurrencies, 17.6% are willing to use cryptocurrencies & rest of

them are not willing to use cryptocurrencies

4.8 Diagram –

4.9 Unlike other currencies, cryptocurrency requires much less fees to operate. Would this
increase your interest in using cryptocurrency?

4.9 Table

Interest in using No. Of Respondents Percentage

48
 cryptocurrency

Definetly 31 30.4

slightly 45 44.1

not at all 20 19.6

indifferent ( unaffected ) 6 5.9

Total 102 100.0

Interpretation: -

The above pie chart shows that 44.1 % of samples are slightly willing to use

cryptocurrency, 30.4% of samples are ready to use cryptocurrency as day today

actives,19.6% of samples are not at all interested in cryptocurrency & rest of the

samples 5.9% are indifferent(unaffected) which means any ways they are not willing to

use cryptocurrenc

4.10 In your
opinion,
which is
more risky
- investing in
the stock
market or
investing in

cryptocurrency?

10.1.Table

Risk in investing No. Of Respondents Percentage

Stock market 17 16.7

49
Cryptocurrency 36 35.3

Both are equally risky 49 48

Total 102 100.0

Interpretation: -

The above figure shows that 48% of the sample are saying both are equally

risky investing in the stock market as well as in cryptocurrency, 35.3% of sample are

saying that cryptocurrency is risky to invest & rest 16.7% of the sample are saying

stock market are risky.

4.10 Diagram –

50
4.11 If cryptocurrency providers created tangible coins or notes for its users with

Banks and ATMs readily available but remained non government regulated.

Would this increase your interest in cryptocurrency?

4.11 Table

Cryptocurrency as a No. Of Respondents Percentage

tangible

Yes 25 24.5

No 29 28.4

Maybe 43 42.2

indifferent(unaffected) 5 4.9

Total 102 100.0

Interpretation: -

We understood from the above pie chart that 42.2% of sample are willing

cryptocurrency as tangible coins or notes even though they are not regulated by the

government, 28.4% of the samples are not willing to use cryptocurrency as a tangible

asset, 24.5%of the samples are ready to try cryptocurrency as tangible coins or notes

even though they are not regulated by the government & rest of the sample are

indifferent(unaffected)

51
4.11 Diagram –

52
4.12 Cryptocurrency is non-government regulated which offers users more freedom.
Would this increase your interest in using cryptocurrency?

4.12 Table

Cryptocurrency is No. Of Respondents Percentage

nongovernment regulated

Yes 33 32.4

No 29 28.4

Maybe 34 33.3

Indifferent(unaffected) 6 5.9

Total 102 100.0

Interpretation: -

From this pie chart we understand that 33.3% of the samples are ready to try

Cryptocurrency even they are not non-government regulated, 32.4% of the samples are

ready to use Cryptocurrency, 28.4% of the sample are not willing to use cryptocurrency

& 5.9% of the sample are indifferent(unaffected)

53
4.12 Diagram

4.13 If cryptocurrency is government regulated but remains Intangible, would this

increase your interest in using cryptocurrency?

4.13 Table

If cryptocurrency is No. Of Respondents Percentage

government regulated

54
Yes 49 48

No 22 21.6

Maybe 31 30.4

Total 102 100.0

Interpretation: -

The above pie chart shows that 48% of the sample are ready to use

cryptocurrency and government regulated but remains Intangible, 30.4% are willing to

try cryptocurrency & 21.6% rest of the sample are not willing to use cryptocurrency

even if they are regulated by government

4.13 Diagram

55
4.14 In 5 years, do you think cryptocurrency will be worth more or less than it is today

4.14 Table

Cryptocurrency worth No. Of Respondents Percentage

significantly more 49 48

Same 28 27.5

significantly less 18 17.6

no change 7 6.9

Total 102 100.0

Interpretation: -

It shows that 48% of the sample are saying there will be significantly more

growth in cryptocurrency, 27.5% of the sample saying their same growth rate in

cryptocurrency,17.6 % of samples say there be significantly less growth in cryptocurrency

& 6.9% of the samples says no changes in cryptocurrency

56
4.14 Diagram

4.15 How do you think cryptocurrency have impacted the economy of India? 4.15
Table

Impact in the economy No. Of Respondents Percentage

1 23 22.5

2 13 12.7

3 43 42.2

4 14 13.7

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5 9 8.8

Total 102 100.0

Interpretation: -

On a scale from 1-5 where 1 being most negatively impacted and 5 being the

most positively impacted, the results are mostly neutral and indicate, cryptocurrency

have not drastically impacted the economy of India.

4.15 Diagram

Hypothesis analysis

Testing of Hypothesis

Hypothesis 1-

58
H0- There is positive impact of cryptocurrency on Indian economy.

H1-There is negative impact of cryptocurrency on Indian economy.

According to the research analysis here H1 stands true and verified as

cryptocurrency have negative impacted the economy of India because of 2022, the

crypto market suffered throughout. With a market crash early on in the year, it's safe to

say that the market has seen better days. Though there is a drastic changes as such but

still a lot of scope for a good effect of cryptocurrency market in India.

H0 stands nullified as per the research as there do not seem any major positive impact

of cryptocurrency in the economy of India and currently seems there are scope in

upcoming days.

Hypothesis 2

H0 - cryptocurrencies have significantly impacted the investment decisions of investors .

H1- cryptocurrencies have least impact on investment decisions of Investors .

According to the data collected and research analysis ,here H0 stands true and verified

as the introduction of cryptocurrency and changes in its nature have clearly shown

significant impact on the investment decisions of the investors .

59
H1 stands nullified as the statement that cryptocurrency had least impact on investors stands

to be proven false clearly as per the data collected.

60
 CHAPTER – IV
FINDINGS, RECOMMENDATIONS
AND CONCLUSION

FINDINGS

1. 44.1% of respondents belongs to FEMALE and 55.9% of respondents belongs to

MALE

2. Majority of respondents belongs to 18-24 years

3. 69.6% of students had responded

61
 4. Only 28.4% respondents are owning cryptocurrency

5. Some of the respondents have heard about cryptocurrency with this survey only

6. Most of the respondents are not interested in investing crptocurrency this year

7. Most of the respondents think that stockmarket is more profitable than

crptocurrency

8. Majority of respondents get more interest in using cryptocurrency after knowing

that cryptocurrency requires much less fees to operate

9. Majority of respondents think cryptocurrency is more risky than stock market

10. Most of the respondents get interest if cryptocurrency is government regulated but

remains intangible

SUGGESTIONS

1. Most of the people had not heard about cryptocurrency itself due to lack of

awareness. So the government should take initiative to make awareness among

the people.

62
 2. The willingness of the people in investing cryptocurrency is significantly less

because there are several risks associated with investing in cryptocurrency like

loss of capital, government regulations, fraud and hacks.

3. Now there is no central authority to regulate the cryptocurrency with proper

rules and regulations. But most of the people prefer it to be government

regulated.

4. The cryptocurrency providers should create tangible coins and notes for its users

with banks and ATMs readily available to increase their interest.

5. Most of the people believes that the cryptocurrency will be worth more than it is

today. So, To make that belief true certain measures should be taken by the

cryptocurrency providers.

CONCLUSION

Crypto-currency is such an invention which has become a global phenomenon. Earlier

RBI warned the Indians from using cryptocurrency that to be associated with money

63
laundering and terrorist financing. However, cryptocurrency is a modern technology and

a tool which needs to look forward for. Even though there has been no regulatory

response from the Indian government, the number of investors in cryptocurrency is

increasing rather swiftly over the last few years. Indian government should take

responsible steps now to regulate such currency as its user in India is rapidly growing.

Future of cryptocurrency in India looks promising and there is ray of hope.

Crypto currencies could provide a significant benefit by overcoming the lack of social

trust and by increasing the access to financial services (Nakamoto, 2008) as they can be

considered as a medium to support the growth process in developing countries by

increasing financial inclusion, providing a better traceability of funds and to help

people to escape poverty .

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 APPENDIX

SURVEY QUESTIONNAIRE

1.Name :

2.Gender :

o Male

o Female

69
3.Occupation:

o Student

o employed

o unemployed

4.Age:

o 18 to 24

o 24 to 30

o 30 to 36

o above 36

5.Mail ID :

6 .Do you own cryptocurrency ?

o Yes

o no

70
7. How much , If at all have you heard or read about cryptocurrencies such as bitcoin or

ethereum ?

o A lot

o some

o not much

o heard about it right now with this survey

8. How likely are you to invest in cryptocurrency this year ?

o Extremely likely

o very likely

o somewhat likely

o not at all likely

9. Which one do you think would be more profitable?

o stock market

o cryptocurrency

o both are equally profitable

10. Cryptocurrency has no tangible form, does that diminish the value that you perceive about

cryptocurrency ?

o Yes

o no

71
 o maybe

o indifferent( unaffected )

11. Unlike other currencies , cryptocurrency requires much less fees to operate.Would this

increase your interest in using cryptocurrency ?

o Definetly

o slightly

o not at all

o indifferent(unaffected )

12 In your opinion , which is more risky - investing in stock market or investing in

cryptocurrency ?

o Stock market

o Cryptocurrency

o Both are equally risky

13 If cryptocurrency providers created tangible coins or notes for its users with

Banks and ATMs readily available but remained non government regulated.

Would this increase your interest in cryptocurrency ?

o Yes

o no

72
 o maybe

o indifferent(unaffected)

14 Cryptocurrency is non government regulated which offers users more freedom Would this

increase your interest in using cryptocurrency ?

o Yes

o no

o maybe

o Indifferent(unaffected)

15. If cryptocurrency is goverment regulated but remained Intangible , would this

o Yes

o no

o maybe

16. In 5 years , do you think cryptocurrency will be worth more or less than it is today

o Significantly more

o same

o significantly less

o no change

73
17. How do you think cryptocurrency have impacted the economy of India?

Positively 1 2 3 4 5 negatively

74