Cyrptocurrency News: The increasing interest of people towards cryptocurrencies has put governments in tension. PM Narendra Modi himself has expressed concern over this in the Sydney Dialogue. PM Narendra Modi said that governments around the world should work together regarding cryptocurrency. If it goes to the wrong network, then the lives of the youth can be ruined. In the winter session of Parliament starting from November 29, the Modi government can bring a bill regarding this.
First of all know what is cryptocurrency?
In cryptography, a network of computers conducts transactions using cryptography technology. In this cryptography technique, neither the identity of the payer nor the identity of the payer is revealed. Bitcoin is also a type of cryptocurrency. Like bitcoin, many other cryptocurrencies are present in the market at the moment. Like Dark Coin, Light Quai, Binus Coin and so on. The most popular cryptocurrency in all of these is bitcoin. Bitcoin has its own mining exchange.
Bitcoin is not controlled by any government, state or bank. It can neither be confiscated nor can any government stop its transaction. Who is the real owner of this currency? And to whom has he paid? It is impossible to detect it. Only those who have taken or paid that payment can see their transactions. In this, the identity of the person doing the transaction remains in the form of a digital “key”. There is no need of any name or address in this currency.
What is cryptography?
Bitcoin is a cryptocurrency. That is, its transaction is done on cryptography technology. Cryptography means confidential operation. That is, a secure communication. In this technique, data is encrypted in a network of computers in such a way that no one can see this information except only those who take and give bitcoins. Even the operator of cryptocurrency exchange stays away from it. All this work is done only through machines. The identity of the real taker and giver is not given to the machine. He thinks of them as only one number and this number is with only two people who is buying bitcoin and one who is selling it.
How is cryptocurrency mining done?
Mining means digging. Since bitcoin has no size like traditional currency does. It is a virtual ie digital currency. It is created from cryptocurrency exchange. This is what is called mining. That is, the more mining, the more circulation. Since there is a limited number of bitcoins in the exchange. Therefore, when its mining is high i.e. demand is high, then its price increases and if its demand is less then the price decreases.
What is the Indian government’s stand on cryptocurrencies?
The Indian government does not recognize bitcoin in its economy. In 2007 and 2017, the Reserve Bank had issued an alert regarding the use of this currency. It said that the circulation of this currency has not been officially permitted and its transactions are risky.
What are the dangers of bitcoin to the government?
Since it is impossible to get the information of those transacting this currency in bitcoin. Therefore, all the means of any government controlling its economy will not apply to bitcoin and in case of emergency the government will not be able to control the risk of its economy. In this currency, it will be impossible to identify the criminals and conduct of money laundering, terrorism, arms and drugs business and it will be extremely difficult to stop it.
If this currency becomes more prevalent in that country than the traditional currency of any country, then it will be impossible for the banks and governments there to include them in the income or tax system of their citizens. The economic power of the state will go into the hands of computers. That is, both the government’s power to issue currency and its sovereignty will end.
danger to common man
You are free to buy it but selling it completely depends on its buyers or the crypto exchange. That is, you can join this world of your own free will, but only your will will not work to get out of it completely. If you are cheated. If your cryptocurrency is stolen or robbed, you will never get it back. Because even the exchange would not know that you were the real owner of the cryptocurrency that was looted.
The robber will easily buy from him and no one will be able to spoil him because the exchange will not know anything about his real name and address. There is no authentic and transparent way of how its prices are rising and when they will come down. That is, you can also be robbed by creating its artificial hike and dip.
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