Greetings, friends! are you able to imagine a thing- the worth of which was zero around ten years back and today, it's value has touched almost 15 lakhs! I'm talking about Bitcoin, that has recently touched its all time high price point thanks to which it's being talked about within the market and therefore the media again So, i assumed this is able to be the proper time to form an academic video thereon and inform you what Bitcoin actually is what s its history? Merely 12 years ago, on 31st October, 2008, an individual named Satoshi Nakamoto published a paper on the web Satoshi's main motive was clearly evident from the primary line of the paper A version of electronic cash that might allow payments tobe sent directly from one party to a different party without browsing a financial organization Cryptocurrency may be a digital asset over which central banks or financial institutions haven't any control or regulation as an example , the US dollar is controlled by the financial institution folks . The Indian rupee is controlled by the RBI But there's no financial organization or any main financial institution that controls the bitcoins/cryptocurrencies some time past , cryptocurrency was merely a thought within the mind of that person.
But now, there's trading worth lakhs and crores on its crypto exchange a bit like shares are traded on the traditional stock markets so as to know the paper of Satoshi and therefore the context of crypto currency, we'll need to understand some concepts of our economic history Our financial systems are supported trust The currency notes and coins have value in our society because they're guaranteed by the govt and therefore the financial institution Take a glance at any note in your wallet. for instance , a 200 hundred rupee note. ,It reads- "I promise to pay the bearer a sum of 200 hundred rupees." this is often often a promise made by the Governor of the financial organization , that is, the Federal Reserve Bank . there's his signature right below This note holds no value without this promise/guarantee This note are going to be reduced to a standard paper if it doesn't carry this signature there's alittle , but interesting story during this context After the second war , America became the foremost powerful country within the world and therefore the remainder of the countries were supposed to align their currency with the US dollar And what was the US dollar aligned / guaranteed? A reserve of gold. the particular value is that of gold or silver.
But it's not practical to hold gold or silver around in your pocket The currency notes were printed for convenience. But US did away with this gold standard rule back in 1971 then , the central banks of the remainder of the countries could print their notes as per their wishes But what do cryptocurrencies and Bitcoin need to do with this? It helps you to guess how powerful the govt and therefore the banks- especially, the central banks of the country are as far as monetary policy cares the very fact of the matter is that when you deposit your money within the banks, you give the banks permission to play thereupon money, in one sense Making use of thes deposits, the banks give loans to companies and individuals this is often what fetches returns, that is, interest on the cash that you simply have deposited Very recently, we've seen that these banks use these savings and deposits during a very irresponsible manner It happens very often that banks give loans to big industrialists without performing adequate checks then these loans become bad debts / NPAs And who falls victim to such situations? Depositors like us.
within the last 15 months, three deposit taking institutions have failed- Yes Bank, PMC bank and Laxmi Vilas bank But even the choices of the govt can put the commoner in peril does one remember November, 2016? Demonetization! the govt laid to waste the five hundred and 1000 notes in one single strike 86% of Indian currency became unusable Those in favour of the Bitcoins and cryptocurrencies are so because they are doing not want the govt or the central banks to exercise such a lot control over their money or currency does one now understand the primary idea/vision of Satoshi? Satoshi imagined Bitcoin as an alternate economic system which would be supported software technology and would be outside the control of third parties you would possibly be ready to recall the worldwide Economic Meltdown of 2008 Mega investment bankers like Lehman brothers had become bankrupt Cryptocurrencies were born right after this scenario Bitcoin was the primary to arrive. then many other crypto currencies surfaced- Ethereum, Litecoin and Ripple actually , within the beginning of the year, quite 2000 cryptocurrencies were available on the web allow us to advance to the most point now: How does crypto- technology work? If truth be told, so as to know this, one must have knowledge of advanced mathematics and computer science- which i do not have But if you would like to start out investment or trading, then basic knowledge would suffice allow us to take the instance of Bitcoins there's one public account in digital form, of all the bitcoin transactions- this is often called a 'ledger' a replica of this ledger exists on all the systems that are a neighborhood of the Bitcoin network people who run this technique are called 'Miners' the work of the miners is to verify transactions Say,this too, entails risks. and people who criticize this as a sort of investment say that Bitcoin may be a digital currency.
it's no inherent value of its own for instance , you'll physically touch the gold in your hands. If you purchase a house as an investment, it'll be physically available to you Bitcoins, on the opposite hand, aren't physical. Everything is occurring on the pc It could still be mentioned as a "niche product" that doesn't have a widespread acceptance within the society Cryptocurrency isn't yet a medium of exchange, that is, you can't attend the nearby shops and buy bread and eggs with Bitcoins But this trend might change within the future because there are several restaurants and hotels within the Western countries that have begun to simply accept Bitcoins as an alternate sort of payment there's a technical challenge here that creates it difficult to use Bitcoins as a medium of in daily transactions The Bitcoin transactions on the block chain take time to urge confirmed. One block process takes around 10 minutes for the computers to calculate So, you'll understand that it's not practical to attend for 10 minutes for a transaction to urge completed in lifestyle But at an equivalent time, there are some present day usecases for Bitcoins where they work better than our traditional ways the simplest example of this is often our Foreign Funds transfer once you need to transfer money from one country to a different , the banks deduct a payment within the name of foreign transfer fees They charge tons of fees and take tons of your time to transfer money from one country to a different The Bitcoins are more economical during this case. Bitcoins don't charge any transfer fees and ten minutes may be a much lesser time as compared to the 1 to 2 days that the banks take an identical thing applies to the mastercard fees Cryptocurrency are often more economical than mastercard fees this is often why banks, mastercard companies and remittance companies are against the Cryptocurrencies and are so even today because Cryptocurrency can become a rival to their business model within the previous couple of months, especially thanks to the Covid pandemic, situations have changed.
While several industries and mutual funds are struggling, the worth of Cryptocurrencies like Bitcoins and Ethereum has been on the increase From the first of March, until November 30, the worth of Bitcoin has risen quite 120%, that is, it's quite doubled in value Paypal, the world's biggest digital payments company, has introduced the feature of crypto transactions in November J P Morgan Bank wont to be the most important foe of Bitcoins. When Bitcoin was on a Bull Run in 2017, that is, when its price was rising exponentially, the CEO of J P Morgan had said that it had been a fraud And now, just a couple of months ago, J P Morgan has opened corporate accounts for famous crypto exchanges like Coinbase and Gemini Trust So you'll see how the doors that had earlier been shut for cryptocurrency have now been opening up An open mindedness is being observed with reference to cryptocurrency within the general public and therefore financial industry Speaking of India, a change of mindset was also observed this year in India and in April 2018, the RBI had eliminated the crypto industry from banking industry RBI has instructed banks in a circular to stop working with crypto-related platforms or transactions General media reports that the RBI has imposed a ban on cryptocurrency but it had been technically inaccurate to mention so Cryptocurrency had never been directly banned in India.RBI had merely blocked the banking access of the crypto ecosystem The results of this was that the general public couldn't deal in INR that's , in Indian Rupees on the crypto platforms.
The banks treated the crypto platforms with lot of harshness With the platform accounts frozen, they weren't ready to pay their employees or pay rent to their landlords So, an issue arises: Why did the RBI do this? the truth is that cryptocurrency has some negative points also that are mainly related with concealment and security within the dark web on the web , the people had started accepting payment in Bitcoins for purchasing weapons and medicines It became very difficult for the enforcement agencies to trace transactions because they were outside the normal economic system Issues associated with hacking also surfaced one more reason is that anybody can come up with their own cryptocurrency. this is often why, tons of bogus and fraud companies took money from the general public with a promise that when trading started therein particular currency, the worth of their money would double/triple in order that they claimed that the cash invested would double/triple an individual named Amit Bhardwaj came up with an identical fraud crypto scheme by the name of "Gain Bitcoin" there's an allegation of a fraud of two ,000 crore against Bhardwaj Bhardwaj claimed that he had "mining farms" in China.
That is, an area where several computer servers were solving equations and said that the bitcoins that were earned as a results of mining operations would tend to the investors as a return But all his promises were in vain. He took money from tons of individuals and fled India there have been such allegations on him. Finally on April 2018, he was arrested As per the newest update, he's out on bail and therefore the case is pending within the courts So, thanks to reasonsthus, there has been a negative psychological bend towards cryptocurrency and bitcoins and in response, the RBI has decided to impose a bank ban on crypto Crypto exchanges i.e., platforms there you'll invest in cryptocurrency and convert rupees into Bitcoins had been operational in India since 2013 Some exchange founders decided to challenge the banking ban in courts. it had been not only a matter of their livelihood, but also a matter of principles They got an opportunity to elucidate how the crypto technology and blockchain works to the govt and therefore the RBI They were of the opinion that the negative points concerning cryptocurrency also are valid on other asset classes also There are often concealment over property, fake notes are often printed, there are often concealment there also There are many fraud schemes that operate during a lot of other things.
The software of banks or stock exchanges also can be hacked There are chances of that also . So, the issues that exist with Bitcoins exist with other things also In response to the present , the reputed Indian platforms included tons of safeguards. for instance , KYC (know your customer) process was made mandatory during check in The case reached the Supreme Court. Several prominent high-profile attorneys have refused to fight the case because there have been a lot of bad news about cryptocurrency within the media and tons of rumors were there as well. have been adjournments. Some exchanges weren't ready to survive during this point and consequently, that they had to finish up Finally, a 3 bench judge heard the case in January 2020 and therefore the court accepted the exchange status and agreed that the RBI ban was "unfair" because the RBI was not ready to prove to the court that crypto investments and trading had negatively hampered the financial systems or banks Under Article 19(1)(g) of the Indian Constitution, it's the elemental right of each citizen to enjoys any business/occupation or trade The court ruled that the RBI ban on banks violated this fundamental right. this is usually a big deal because it is not uncommon to defeat an RBI in court. Therefore, it was a historic day on March 4. the Indian crypto industry.
The court clearly declared that there's no legal prohibition on cryptocurrency trading and investment This business is legal and therefore the RBI would need to repeal its banking ban Overall, this is often excellent news for all folks . we will freely invest in cryptocurrencies, if we wish to we've this chance to diversify our financial investment you'll invest some money in cryptocurrency as an experiment After the choice of the Supreme Court, several exchanges have burgeoned and this process has become extremely straightforward and straightforward in India one among these is Coinswitch Kuber, an app on which you'll deal in additional than 100 cryptocurrencies quite 7 lakh users have signed abreast of Coinswitch Kuber within 6 months and therefore the ir safety measures also are extremely stringent The Aadhar and PAN of the purchasers are verified and the minimum investment allowed is of 100 rupees- all with none fees Furthermore, rupee withdrawals are instant.
That is, there's no problems of lock ins lately , crypto investment has become as easy and painless as online food ordering this may become evident upon seeing the clutter free interface of Coinswitch Kuber Ofcourse, you'll need to follow some rules of sense . for instance , don't trade by taking loans from Banks or others. If there's a requirement for you to require loans, to take a position in cryptocurrencies or Bitcoins, don't do this . Then, this is often often not for you simply invest that much money that you simply are comfortable losing because this is a particularly risky investment the worth of the cryptocurrencies fluctuate tons and it's extremely volatile.
So, it's pretty clear that it's both a chance also as a risk Your risk appetite and investment goals decide whether you would like to play a brief term or an extended term game Overall, it are often said that cryptocurrencies and Bitcoins could play a crucial role within the way forward for finance It remains to be seen whether cryptocurrency can become a medium of exchange which will be subject to widespread use or will it remain a store useful investment? Will you be ready to buy bread and eggs from your nearby shops with Bitcoins within the future? or will it not be possible? That day could be very far but it can't be ruled out as impossible that easily I hope you'd have enjoyed this.