04 February 2018

Cryptocurrency: Appreciated by All, But…

6:51:00 PM Posted by Kamal Paneru 1 comment

Born in the year of 2009, Bitcoin is the father of the cryptocurrency revolution, which started with the sharp strategies of entrepreneur Satoshi Nakamoto. Just as some four centuries ago organization Dutch East India Company had introduced the concept of stock exchange with offering on Amsterdam Stock Exchange and gave a new thrust to market, in a similar way, Bitcoin became the biggest game player and market changer within few years of its inception. Now, there are only few who are aware of market but not Bitcoin. However, it is bitter truth that not all people who have invested in Bitcoin really know what does cryptocurrency mean, how it works, how it gives profit and loss, who are the people behind and who to approach when trapped.

A system that requires cryptography in order to exchange the medium is called cryptocurrency.

Bitcoin gave people a new way to invest in and somehow ensured them that there is high profit in it rather than stock market.
Following Bitcoin, there emerged number of new cryptocurrencies in market, that is, Litecoin, Namecoin, Bytecoin, Peercoin and Koinex. Year 2017 remained best for Bitcoin in order to have tremendous transactions. People all over the world showed their interest in it and gave it new heights of business. Whenever it went down, it led people to think about other cryptocurrencies. Struggling for their existence in the market and favourite list of users, other cryptocurrencies kept wandering in the thousands of articles and online advertisements. Cryptocurrency won the trust of users in 2017 when Bitcoin price reached up to 14 lac at the year end that was only one to two lac at year starting time.

People who think less before investment and want short-term growth considered Bitcoin a better platform to convert the value of their money up to nth time. Also, the news of Bollywood celebrity Amitabh Bachchan earing some crore rupees from Bitcoin also gave people assurance about their investment.

There is a saying “nothing is permanent,” this saying seemed perfect when downfall of Bitcoin started. It reached its peak and now was time to come back at normal. One Bitcoin that cost 14 lac soon came up to 10 lac. Another jerk to Indian people was when Arun Jeitley, minister of corporate affairs, on Budget 2018–2019 announced that cryptocurrency is not legal in India and people who are doing it will be solely responsible for their loss. Also, he instructs banks not to do any transaction for cryptocurrency and states people who are involved in it are doing criminal activity that is against Indian law.

Downfall in Bitcoin price led many people lose their savings and that resulted people skipping from cryptocurrency. Due to the volatility of Bitcoin, few more countries came forward and put a ban on cryptocurrency. Cryptocurrency is volatile because it is not governed by any government body in any country.
For example, SEBI looks after all the transaction over stock market in order to let people have fair transactions without any bluff, but there is no any platform where you can be sure that yes, your transaction is worth of it.

In order to keep people safe from financial losses, social media website Facebook is also coming forward and putting ban over running ads for cryptocurrency.

When many of the government bodies are more concerned about the welfare of people, people must think hundreds of times before investing in any cryptocurrency.

It is quite better to study stock market and then come into it rather than blindly going for cryptocurrency like Bitcoin for trading.