Analyse various crypto currencies, their uses and concerns over their regulation and issues associated.

Cryptocurrency is a digital currency. Encryption techniques are used to regulate its use and generate its release.�It is not regulated or controlled by any bank, government or centralized financial authorities. It relies on the power of internet to guarantee its value and confirm transactions.
Uses:

  • Purchase of products and services
  • Money Transfers and cryptocurrency tipping
  • Get paid in cryptocurrency
  • Investment opportunities

Concerns:

  • Cryptocurrency mining and transactions can only happen on network, illiterate people will find it difficult to understand the working mechanism
  • Cryptocurrency exchange rates can vary greatly, which means the amount you pay or receive one day could be wildly different next day
  • These are prone to losses arising out of hacking, loss of password etc
  • There is lack of any authorized central agency to regulate the payments
  • These can easily be used for illegal activities anonymously
  • There is no underlying asset for Cryptocurrencies, making the value a matter of speculation

�Some important cryptocurrencies are Bitcoins, Litecoin, Namecoin, Swiftcoin, Bytecoin, Gridcoin. Recently Facebook�has announced a digital currency called�Libra�that will roll out for use in 2020. In India the creation, trading or usage of cryptocurrencies including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority.
 

Published: June 19, 2019 | Modified:December 1, 2019

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