Cryptocurrency General Knowledge 2022 Bitcoin and many other details About Digital Currency Coins Cryptocurrency (in short Cryto) is a digital currency in which transactions are verified and records thereof are being maintained by a decentralized system using cryptography, rather than by a centralized authority like banks.
What is Currency?
Currency is a medium of exchange for goods and services. In short, it’s money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment. For example Rupees in India and Dollar in USA which are represented by its currency sign i.e. ₹ and $ respectively by mentioning its value on the paper or coins.
Are the value₹10 is equal to $10?
Not at all, exchange value of various currencies is largely determined by demand and supply conditions of that currency in the foreign exchange market. Apart from that the central banks of state also plays critical roles in determining the value of their currency. Cryptocurrency General Knowledge
How Cryptocurrency works?
Cryptocurrency is a form of payment as like currency that can be exchanged online for goods and services. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. In case of real currency, transactions are managed, recorded and governed by the state banking system whereas in case of Cryto, transactions are neither recorded nor managed state banking systems.
Cryptocurrency and international law:
Present laws cannot be applicable in case of cryptocurrency as they have been developed by keeping the flat currency in consideration and this is the reason that international trade laws need to amend and recognize the cryptocurrencies in order to remove all the possible confusions.
First country where cryptocurrency is legal tender:-
El Salvador has become the first country in the world to make the cryptocurrency Bitcoin legal tender.
Cryptocurrency and India:
Cryptocurrency General Knowledge 2022 : About Digital Currency Coins
It isn’t a valid currency in the conventional sense, which means that you cannot pay with cryptocurrency to buy and sell anything in India. The currency of a country is legal tender backed by a sovereign guarantee. In India, only the central bank (RBI) can issue any currency. But as there is no legislature that covers cryptocurrencies in India meaning, therefor having cryptocurrencies is not illegal but at the same time in the absence of a legislative framework, crypto owners may not be able to enjoy the same level of safeguards that owners of other asset classes do.
However in India, many cryptocurrency exchanges such as WazirX have flourished in recent past in the absence of a policy framework and people are doing trading of Crpto in a seamless manner through these cryptocurrency exchanges. As per news report during the Over the past one year, trading volumes on Indian cryptocurrency exchanges has increased from $100 million to $40 billion and increasing day by day.