Cryptocurrency

As we know in ancient times, people used barter systems for trade and economic management but with time the mode of transaction changed and our people started to use seals, tokens, coins and after that, we reached paper note currency which is the most popular among us. We currently use debit cards, credit cards, and UPI. Here, an interesting point is that after the 2008 economic crisis Satoshi Nakamoto released a white paper on public Blockchain technology, and cryptocurrency is based on this. His motive behind this was that the ownership of currency would not be central, meaning no central authority would regulate it.

It would be regulated by the owner. So it is called decentralized currency.

“Cryptocurrency is a medium of exchange that works through computer networking based on encrypted cryptographic style and doesn’t reliant on a central authority.”

Some cryptocurrencies are Bitcoin(16,12,537.12INR 13 October 2022) and Etherium.

(Blockchain technology - it’s a ledger in which transactions and value of money are stored  securely by encrypted technology.)

Challenges in cryptocurrency –

Cryptocurrency is a good option as a medium of exchange but some challenges are here like legality issues, safety, and stability these are the main challenges in cryptocurrency at current

• Most countries like Japan, UAE, and Morocco(absolute ban) in the world don't allow it and they call it illegal. The main reason behind this is crypto has not been approved by any central authority. but some countries allow it limits like Russia, USA also thinks abt its legality. In the Indian context, it's not legal but investors can invest, and the government levies a 30% tannin crypto so it is also not banned in India.

• Crypto often rises suddenly very high and down also and investors some time got loss very much so its stability is very necessary for the future if we talk about fraud, and increasing demand for crypto in online global marketing some companies had exploited transaction malleability problems as an instance Mt.Gox declared bankrupt due to this hacking it had lost $473 million.