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Have you ever thought about buying essential goods with cryptocurrency? All this is possible. Seven and eight years ago, no one would have believed that we could transfer money just by scanning a QR code. But nowadays UPI apps like PhonePe, Google Pay, and Paytm are available everywhere. With the rapid speed with which the world is growing, the currency has also taken a digital form. This type of digital currency is known as cryptocurrency. Let’s review the definition of currency before learning about digital currency and cryptocurrency. Also, let us understand the benefits and dangers of cryptocurrency Adoption.
What is Currency?
Currency refers to any sort of money approved by the government and utilized by the general public for exchange. Money can be served in the form of notes or coins. Each country has its currency. India’s currency is the rupee, America’s is the dollar, Bangladesh’s is the taka, Russia’s is the Ruble, China’s is the Yuan, Japan’s is the Yen, and the majority of European countries use the Euro.
What is Cryptocurrency and how does it work?
Cryptocurrency is a virtual currency that was introduced in 2009, and Bitcoin was the most popular first cryptocurrency. It is not like real coins or notes. It means that we cannot hold this currency in our hands nor carry it in our wallet. However, it remains safe in our digital wallet, so we can refer to it as an online currency. It is only accessible online.
Everyone is aware that the government controls every aspect of our currency, including the Eurodollar and the Indian Rupee. But the government has no control over cryptocurrencies like Bitcoin. Government authorities like the Central Bank or any other agency of any country have no control over this virtual currency. This means that Bitcoin does not follow the traditional banking system. Rather, transfers keep happening from the computer wallet to another wallet. It is not that Bitcoin is the only such cryptocurrency, but there are more than 5000 different such cryptocurrencies available. There are some of the popular cryptocurrencies available: Ethereum, Ripple, Litecoin, Tether, and Libra. You can invest in it like Bitcoin and can also buy and sell it easily.
Yes, it is a different thing that Bitcoin is currently the most popular cryptocurrency. You can also assume the popularity of the currency by looking at the sheer number of global companies that have started accepting Bitcoin payments. And the number of companies will continue to increase significantly in the future.
You can use Bitcoin for shopping, trading, food delivery, and travelling. Bitcoin payments are becoming increasingly popular in India. One of the reasons for cryptocurrency’s slow growth in India is its illegality. Because cryptocurrencies were previously banned by the RBI, the Supreme Court lifted the ban in March 2020. This means that the use of cryptocurrencies is now legal in India, which is why the number of cryptocurrency users has started increasing in India.
Bitcoin is less popular in India than in other countries because the concept here is that if you want to invest money, then you should do it in fixed deposits (FDs), mutual funds, shares, and gold only. This is not wrong, but investing in a new currency of the new era has its advantages. With this, you can make transactions easily and quickly. International transactions can be completed within a few minutes. In this, you will have to pay negligible transaction fees.
There is no middleman involved in this transaction, and hence it is more secure and confidential. Yes, Bitcoin is a good investment, although it is not a new concept. Many companies, including Facebook, PayPal, Amazon, and Walmart, are associated with this cryptocurrency. This cryptocurrency is used by popular celebrities like Elon Musk, who is the richest person in the world today, Jack Dorsey, Mike Tyson, and Kanye West. The countries with the largest number of Bitcoin users include China, Japan, Spain, and Romania. After knowing this, you too might be thinking about investing in Bitcoin, so let us assure you that using Bitcoin is also quite simple. This means that by using the CoinSwitch Kuber application, you can invest in Bitcoin with a single click. You can also buy and sell it.
You will find it as simple as buying your favourite products from Amazon. This application has millions of users worldwide, but you must have this question in your mind: will Bitcoin be expensive? How can I buy it? The current price of one Bitcoin is Rs 32 lakh, and its value is rising quickly. However, the good news is that you may start investing using this application for just Rs 100/-, and hence you will not have to pay any transaction fee. Here you should know that the price of Bitcoin keeps increasing rapidly, and its price keeps increasing and decreasing according to its demand.
Now let us understand Benefits and Dangers of Cryptocurrency Adoption.
Benefits of Cryptocurrency Adoption
- It’s all about speed; imagine sending money around the world in minutes instead of days; that’s the power of cryptocurrency. Remember that banks charge us those pesky transaction fees. Well, cryptocurrency transactions often have very low fees, which means more money stays in your pocket, and who doesn’t like that?
- Cryptocurrency is global; It makes no difference if you are in a big metropolis or a remote place. You can utilize it as long as you have access to the internet.
- It’s like having a universal currency; these advantages have made cryptocurrencies extremely popular, particularly among tech-savvy people who want more control over their money.
Before you invest your life savings, let’s take a look at the other side of the coin.
Dangers of Cryptocurrency Adoption
We are aware of the tremendous potential of Cryptocurrencies, but everything is not roses and sunshine.
- The primary concern is Regulatory risks add another level of uncertainty. Governments throughout the world are still finding out how to manage Cryptocurrencies, which could lead to unexpected regulatory changes.
- The next concern is marketing volatility. Every time the price of Cryptocurrency keeps going up and down, there is always a risk of hacking and scamming. Never risk more than you can afford to lose when investing.
- Security concerns cannot be ignored, either due to the risk of hacking or the possibility of loss of funds, making it important to have strong security measures in place.
Understanding the risks will help you navigate the complex world of Cryptocurrency. Hope this article explained to you the Benefits and Dangers of Cryptocurrency Adoption and now you can make up your mind.