Cryptocurrency in India

Due to the rapid development of information and communication technologies, many activities in our daily life have been merged online and they become more flexible and more effective. The use of virtual currency has become widespread in many different systems in recent years . There is no doubt that the era of information and communication technologies have created many golden opportunities in several aspects. One of the fields that benefit from these technologies and online connections is the financial and business sector. A growing number of online users has activated virtual world concepts and created a new business phenomena. Thus, new types of trading, transactions and currencies have been arising. One of the remarkable financial forms that have been emerged in the past few years is Cryptocurrency . Cryptocurrency (CC) can be defined as any medium of exchange, apart from real world money, that can be used in many financial transactions whether they are virtual or real transactions . Bitcoin has maximum dominance in the cryptocurrency market with around 45% of market share & market capitalization of $142.2 Billions (Rs 9.25 Trillion). Its market price is $ 8254.8 i.e Rs 5,35,767. Other cryptocurrencies excluding bitcoins are referred collectively as altcoins, it includes other 1550 currencies that are traded . some of them are Etheriun , Ripple , litecoin , Monero , Neo etc. India with a population that is over 1 billion strong has been on something of an economic renaissance in the last few years. More than 40 percent of the country’s population has access to telecoms and internet services . Bitcoin and other cryptocurrencies have been operating within the country for a number of years now. In 2012, smallscale Bitcoin transactions were already taking place within the country. By 2013, Bitcoin was beginning to gain a level of popularity that was spreading across many countries. That year, a few businesses began to accept Bitcoin payment. A vintage era pizza shop called Kolonial in the Worli area of Mumbai became the first restaurant service in India to accept Bitcoin payments. On November 8, 2016, Prime Minister Narendra Modi announced the commencement of a demonetization policy. People with large cash holdings required a new means of holding such wealth without incurring significant tax burdens . It became common practice for some to buy large orders of Bitcoin or other cryptocurrencies and then sell them at a later date . Despite its vast population, India only contributes 2 percent of the total global cryptocurrency market . Lack of large-scale mining facilities & strict government restrictions on international money flow also makes it significantly difficult for Indians to transact with many of the large foreign crypto exchange platforms. The Reserve Bank of India (RBI) has been consistent in warning citizens of the risk associated with cryptocurrencies. While the government of the country hasn’t banned cryptocurrencies but also they haven’t exactly been endorsing it.

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