Coining own cryptocurrency no cakewalk
With spectacular returns, new asset class attracting huge investments as level of adoption getting wider across world
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EVEN as the country gears up to have its own crypto currency in future, there are a host of challenges which are likely to come up in its way. Some of those challenges may be in forms like frauds, hacking, suspicious activity and above all, money laundering, feel the experts.
"India is also ready for their own crypto currency, it is interesting to see how Government came out with the rules on other crypto currencies as many frauds of hacking, Government found many suspicious activity and worried money laundering due to easy transfer," Prem Prakash, CEO at CapitalVia Global Research told Bizz Buzz.
In Emerging market almost all the countries are in the process of developing the regulatory framework and guidelines for the crypto and I think India is also ready for their own crypto currency, he said, Crypto currencies are designed to be free from the control of any Government or Central bank and Cryptocurrencies do not belong to any nation or so. Traditional currencies are usually related to the central banks of nations or the government, India has Indian Rupee, the USA has US Dollar, Japan has Yen, the EU has Euro and the list goes on.
The crypto market has always been highly volatile, and the overall direction is determined by a lot of factors.
During the pandemic, the cryptocurrency market was on the upswing because of growing acceptance of cryptocurrency by financial institutions and regulators. Also, it has attracted users' attention as a way to pay for goods and services as well as a way to invest. Bitcoin and other cryptocurrencies were all the rage on social media. Only time will tell if today's excitement in all things crypto is a speculative trend or if crypto may be a solid, long-term investment but in my view at least in some form, digital currencies and blockchain technology are likely to be around for a long time.
Blockchain is a method, he went on, of storing data in such a way that it is difficult or impossible to alter, hack, or cheat, it is reducing risk and cutting costs for all parties involved. Blockchain is becoming increasingly fascinating and properly so.
Prakash further says, "I remember in 1996 there e-gold which called as "Digital Currency" but it was failed to grab attention and US shut it down in 2008, The main issues was trust, cryptocurrencies created to address this issue by utilizing a blockchain, Blockchain is unique in that no one is in charge; instead, the individuals who utilize it run it and Every transaction in this ledger is signed with the owner's digital signature, which verifies the transaction and protects it from tampering. As a result, the data in the digital ledger is extremely safe." Common belief is that Blockchain and crypto are interchangeable terms, but this is not the case. Blockchain is a technology capable of supporting a variety of applications in a variety of industries, including finance, supply chain, manufacturing, and so on, but Bitcoin is a money that is secure thanks to Blockchain technology. Machine learning-powered algorithms are included in traditional trading bots used in the stock market today. As a result, it's no surprise that machine learning techniques are being used to develop trading strategies for the cryptocurrency markets. Over the last decade, cryptocurrencies have evolved as a new asset class with spectacular returns. Investment in the cryptocurrency is growing with the level of adoption widely in the world. Major player like master card and PayPal announced the support to the crypto and Tesla motors put $1.5billion in the bitcoin Some of the currency had tremendous run like dogecoin increased by +2,330 per cent and cardano increased by +766 per cent. Hedge funds are also preferring cryptocurrencies over the precious metals. Crypto is giving very good returns but Investment in crypto is very volatile and retail investor can't ignore it, he said.
Avinash Shekhar, Co-CEO, ZebPay, says that no one can predict the market or define if we have entered the bear market. Crypto markets overall have seen significant gains over the last 6-9 months despite the recent dip in prices. But, the market is still sustaining very well above the 2017 all-time high prices. This is a good sign of the market still holding a positive sentiment. We are looking forward to the upcoming upgrades to different blockchain networks and might see more fundamental strength in this space leading to sustainable growth in the future.
