Project Report on Cryptocurrency In India
Cryptocurrency In India
One year after the setting up of a specific type of panel to undertake the studying along with the identified investigation of cryptocurrencies, the identified Reserve Bank of India is considered to have come up with a regulation that was considered to be on the identified cryptocurrency in the month of April to facilitate the banning of cooperation that exists between the identified financial institutions that are under its identified purview as well as the businesses and the identified cryptocurrency associated businesses. Finally, it is vital to understand that the policy is usually enforced as it is planned. It took a key stand on the identified cryptocurrency for the first time as well as the recent decision of the identified Supreme Court to keep the identified ban unchanged marked a dim day to the identified cryptocurrency holders as well as developers (Bashir, 2017).
Therefore, despite the fact that individuals are involved in looking to the identified authority for not so overly type of strict associated policy on the hearing that will precede, it is highly likely that the identified future developed associated with the crypto market will head toward the identified downward trend in the prominent state of India. However, if people perceive what happened in the previous give years since the identified first launch associated with Bitcoin in the prominent state of India, they may be able to find that the identified government held and identified elusive type of attitude towards the identified crypto as well as there is a powerful correlation that exists between the identified policy along with the identified situation that the currency is considered to be in. This section offers a draft of the timeline regarding the development of the industry of cryptocurrency in India.
It was in the year 2013 that the prominent bitcoin made its first arousal of a big heat in the state of India, with individuals from all the identified social classes entered the identified market as well as made instant types of transactions or even in the speculation on it. However, it is vital to note that 2013 was also considered as being the first year for the identified individuals to begin the development of the identified technology along with the identified industry (Werbach, 2018). The given authority at the identified time initially was entailed in taking a off-hand type of measure, then they were entailed in the release of a post at the identified year-end regarding 2013, warning the identified utility regarding the given cryptocurrency which may lead to incurring of risks along with dangers, however no official form of regulatory type of policy was introduced at that moment. It is then that the identified whole India cryptocurrency type of industry walked in the identified three-year gold associated age with the identified cryptocurrencies exchanges as well as the identified start ups coming one after the other; the identified coins along with the identified technology was considered to have introduced into more utility cases in the given practical terms.
As the prominent India is considered to be a nation whereby a late number of individuals, approximately 20%, who do not possess any accounts at any of the banks or the given financial institutions but they still have high-level of the need to transfer their money, for the identified international associated remittance is considered to have led to a huge part regarding the national economies along with the identified coins and even the given technology carried out well along with adequately so as to offer instant as well as low cost services to the identified public (Werbach, 2018).
The identified token is considered to have even become an identified alternative to the prominent Rupee when the identified government was involved in announcing the demonetize of about 75% regarding the given currency that was involved in the identified circulation. Then the identified government in the given years was considered to be nice to the identified crypto along with the identified technology that was prevalent in regard to it. They are considered to have effectively invested in projects that were aimed at the further development of the identified technology as well as offered support to the identified tokens which were considered to make the public along with the individuals to have knowledge that the identified government would be entailed in the legalization of the identified crypto
However, it is vital to understand that things did not work out in the manner in which they wanted them to do so. 2017 was considered to be a huge turning point for the identified development regarding the given industry. People started to hear about the identified news reporting on the upcoming severe as well as tough types of regulations on the identified crypto type of market and experienced the instant fluctuations in regard to the identified token value as well as the identified trading volume as the identified trend became negative. Actually, it is vital to note that the given rumors that were involved in the introduction of the more strict and tougher regulators as well as the poorer and the inappropriate type of Performance regarding the given market, driving the identified price down in a significant manner. In accordance to some of the data that is presented online, the identified price associated with the bitcoin plunge from the identified highest level, an approximate of S10,000 to about $6500 (Werbach, 2018).
Then the identified RBI was involved in finally outlawing the identified crypto industry through the given introduction of the ban so as to stop the various activities that existed between the identified crypto types of businesses as well as the various institutions that were considered to be under its given supervision. It also sets an identified data for the entities to leave the given field along with forces the identified cryptocurrencies type of exchange to halt the provision of the identified services to the given public (Bashir, 2017). The identified cryptocurrency was considered to have gone back along with forth over the Identified years in the state of India. In fact, it is the identified level of ambiguity associated with the identified attitude regarding the given government towards the given industry that is considered to lead to the identified ups as well as downs in the given cryptocurrency.
In the great news from the prominent Tom Lee, the identified Fundstrat Global Advisor’s analyst was entailed in reporting that a lack of an effective type of regulatory clarity is associated with imposing pressure on the identified market with a comprehensive type of policy. As the identified supreme Court was involved in vetoing the identified petition for the given cryptocurrency, then the identified ban was involved in being released by the prominent RBI that was considered to have been enforced on the month of July on 6th (Werbach, 2018). There is evidence that there have already been two types of exchanges that are aimed at frozen their various accounts as well as attain the users that will help in getting their identified money out; they are involved in closing the identified channel with a key aim of processing the identified fiat-to-crypto type of trade as well as take part in launching the sole crypto- sole trade until the identified lift, if it is to effectively impose the identified ban in the times to come.
A cryptocurrency is identified as being a digital form of asset which is usually formulated to operates as being a key medium of exchange whereby the identified individual coin type of ownership records are usually stored in the identified ledger existing in an identified form associated with the identified computerized form of database utilizing the powerful type of cryptography to facilitate the securing of the identified transaction types of records to help in controlling of the identified creation regarding the additional types of coins as well as in the verification of the identified transfer associated with the identified coin ownership. It usually does not exist in the identified physical form such as the identified paper Money and is often not provided by the identified Central authority (Bashir, 2017).
The cryptocurrencies usually utilize the decentralized form of control as is opposed to the identified centralized digital associated current along with the identified Central banking systems. When an identified cryptocurrency is usually considered to be minted or even formed via the issuance or even it is issued by the identified single type of issuer, it is usually considered as being centralized. When the aspect is Implemented with the identified type of decentralization control, each of the identified cryptocurrency usually operates via the identified distributed form of ledger associated technology, usually a blockchain type of technology that is entailed in serving as being a public financial transaction type of database. Bitcoin is considered to have first released as an open type of source software in the year 2009 and is the first type of the decentralized type of cryptocurrency. There have been other types of cryptocurrencies that have been created ever since then (Bashir, 2017).
With a high level of identified dependency on the identified virtual type of interface as well as the identified growing arena associated with the aspect of digitalization, it is considered pertinent to effectively comprehend as well as reflect upon the identified types of cryptocurrencies. The significance associated with the same is usually aggrandized by the identified fact that the identified discussion that is considered to be surrounding the identified cryptocurrencies as the identified currency for the identified future has already caught the right set of momentum. This section offers a comprehensive as well as a fundamental understanding regarding the identified cryptocurrencies including its current and future status in the state of India.
In light regarding the most current judgment that was passed by the identified Apex Court in the month of March in the year 2020 as well as consequently the identified circular that was passed by the prominent Research Bank of India which is currently defined as being the RBI, in the earlier days banning its identified entities from undertaking any kind of the provision of the various types of services to any of the persons or even organizations that are considered to be dealing with the identified virtual associated currencies has been set aside on the identified ground regarding proportionality as well as that it is involved in curbing the identified fundamental right that is considered to be enshrined under the prominent article 19 regarding the Indian constitution. Now that the identified individuals can foresee the given arrival associated with the identified cryptocurrency in India, there is the need to put into consideration the identified legal framework for it to be effectively regulated (Werbach, 2018).
Undoubtedly, whereby on the other hand, it seems to be a big level of opportunity for the identified investors, on the other hand, the identified caveat for its identified misuse is considered to still stand. It is considered to be true that with the identified growth along with Development regarding the digital world, it is highly inevitable to offer prevention of a person from taking part in the identified virtual currencies, thus, the sole plausible way is considered to be regulation of it. To effectively comprehend its identified functioning as well as its anomaly, there is the need to effectively comprehend what is usually meant by the identified term cryptocurrency along with the manner in which it is considered to be distinct from the flat money (LEISING, 2020).
The identified term cryptocurrency is used to define the kind regarding the virtual currency which is usually secured by an identified encryption code. These are usually on the basis of a decentralized type of system regarding networks which usually are based on the identified Blockchain form of technology. What is considered to be involved in the segregation of the identified cryptocurrencies from the identified ordinary online forms of transaction is considered to be its identified modus operandi. The key difference that exists between the identified cryptocurrencies as well as the normal types of digital transactions is that in the identified cryptocurrencies there is no presence of a single or even a central form of ledger that is available instead the recording regarding the identified transactions is been carried out by all the identified users that are taking part in the identified system as well as at the same time which are involved in demising of the identified chances associated with it getting hacked (LEISING, 2020). So, it is vital to note that this is involved in answering one of the key questions that usually arise when it comes to the identified safety as well as hacking of the identified cryptocurrency. The currencies are usually on the basis of a safer type of interface as compared to the other types of currency.
It is interesting to understand that in India, the buying as well as the selling or even the trading of the identified cryptocurrencies has never been disallowed at any point. On the month of April in the year of 2018, the prominent RBI was entailed in the release of the statement that was referred to as the Statement on Development and Regulatory Policies, which is involved in banning all of its identified regulated entities from having to deal with or even taken part in the provision of any kind of services to any of the given persons or even the business associated entities that are dealing with or involved in settling if the virtual types of currencies as well as to also ask them to be involved in exiting of any such type of a relationship it already they have been a part of it (Werbach, 2018).
Later on in the same month, the RBI through the exercise of the identified type of power which is usually concerned to it by the identified Reserve Bank of India Act as well as the payment and the settlement type of act, 2007, whereby the prominent RBI being the identified authority for the identified regulation as well as the identified supervision regarding the payment system that is issued a circular that is involved in directing the identified entities not to handle any kind of virtual currencies or offer any kind of services for the identified facilitation of any kind of individual or even a corporate that is dealing with the same (Werbach, 2018). For clarity, the identified services entail the registering as well as the maintenance of the accounts, trading, settling down and giving of loans against the virtual types of tokens, opening of an identified account for the exchanges that are dealing in the virtual types of currencies or even sale and even in buying it the same. Prior to this type of circular, most of the inter-ministerial meetings along with the circulars have been released from time to time that is involved in illegalizing the identified virtual currencies that are in India.
Aggrieved by the identified restriction that is imposed by the identified RBI as well as the identified internet and even the identified mobile associated association regarding India in the year 2018 was involved in filing a petition that is questioning the identified legality regarding the circular that is issued by the identified RBI. Subsequently, another kind of petition was usually filed by the identified shareholder as well as the founder associated with the given companies that were engaged in the identified online crypto exchange types of platforms as well as with the few types of individual traders the identified case has been filed in the identified year 2018 under the identified name regarding the internet and Mobile Association of India.
The key contention associated with the IMAI was that the identified power associated with the identified RBI involved in the prohibition of the identified activity regarding trading in the identified virtual types of currencies were considered to be outside the identified regulatory type of framework associated with the identified RBI Act or even the Banking Regulation type of Act of 1949, since it does not in any way fall under the identified credit system or even the identified payment type of system under the identified PSS Act. It was also contended that the identified complete ban on the identified business type of activity via the subordinate legislation is identified as being a violation of the famous Article 19 regarding the identified constitution of the great state of India. The identified RBI response to this was that this type of action of theirs is needed to offer protection of the identified interest associated with the general public as well as consumers and even regulated types of entities since the identified nature associated with the identified virtual types of currencies is considered to be highly volatile as well as it is considered to be able of being utilized for the illegal types of activities because of their identified anonymity (LEISING, 2020).
RBI further contended that the identified currency associated exchange does not possess any kind of formal or even structured type of mechanism to take care of any kind of customer associated grievances. It can also hold the ability which is considered to erode the identified monetary stability associated with the currency as well as the identified credit associated system. The supreme court on India observed that the identified cryptocurrencies are to be put into consideration as being a form of a digital kind of representation regarding the type of value which is able of functioning as being a medium of exchange as well aa the identified unit regarding account or even the storage of value. It was effectively noted that the identified cryptocurrencies are able of carrying out all the identified functions associated with the actual money via not the legal tender (Werbach, 2018).
Moreover, the identified court was involved in noting that the identified RBI has the identified requite type of power to facilitate the identified regulation of the identified currency type of system associated with the nation as well as the identified argument regarding the IMAI as well as the other types of stakeholders are considered to not be acceptable. However, it is vital to reflect upon the identified contention associated with the identified petitioners that it was considered to be not reasonable or even not acceptable to fully ban the identified right to attain accessibility of the identified banking associated system which is regarded as being a key part to the identified right to carry on any kind of trade or even profession as well as any kind of legislation whose effect is involved in impairing the right that is granted on the same type of lieu would be put into consideration as being a violation of the article 19 regarding the Indian Constitution.
Therefore, it was put into emphasis that the identified types of measures that are adopted by the identified RBI ought to pass the identified test of proportionality (Werbach, 2018). As the identified RBI has been considered to be conferred with the very wide types of powers in the economy regarding the nations, which types of powers are in the identified form of the preventive along with curative, the identified Supreme Court made Conclusions that the identified types of measures that are taken by the identified RBI for the identified issuance regarding the RBI circular were not considered to be proportionate. And even to say accordingly, the said type of circular was considered to be set aside by the identified Apex Court on the identified ground of proportionality.
The significance associated with this type of judgement was that India being among the largest types of markets as well as the most populous nations regarding the universe, cannot be acting as a sleeping giant. It possesses no any kind of change as well as adoption of the current types of methods and even means to compete with the fast growing Technologies in the world. This will help the identified trade associated relations regarding the identified nations with the developed countries. The lifting associated with the ban will assist in the generation of a current type of technology which will act as a motivation for the youths regarding the nation to take part in the current types of start ups in the same type of field (Werbach, 2018).
Categorization associated with the identified cryptocurrency post the Covid 19 pandemic, there has been the presence of massive type of boost in the identified valuation regarding the identified cryptocurrency bitcoin which has been considered to emerge as being a hedge against the identified uncertainty associated with the pandemic. With many other types of restrictions which are usually imposed by the identified government associated with the distinct nations to stop the identified spread regarding the identified virus, the identified trade as well as the flat money type of exchange has been impacted majorly (LEISING, 2020). The outcomes identified in a huge level of change on the identified interests associated with the identified investors.
Since cryptocurrency is considered to be a virtual currency as well as it also harmless when it comes to the identified spread of the identified virus, a great number of the investors also called as the identified crypto type of investors showed their interest in the investment through the bitcoins. This has greatly affected the economy of India badly as many of the nations which are considered to be accepting bitcoins were benefitted with the identified transactions in the identified virtual currency at the challenging times associated with the pandemic. The skeptical view associated with the Indian government is considered to come as a setback for them since the nation does not possess a key Legal type of framework that is essential in the regulation of the identified transactions associated with cryptocurrency. Any kind of investors who is considered to be interested in the investment of the huge money that is needed as being a surety that there is the effective type of mechanism for the identified dispute associated redressed. The identified Indian government fail to identify bitcoin as being a currency, now when the identified ban has been lifted, there are many questions as well as issues that are needed to be addressed (Bashir, 2017).
The great dilemma associated with the Indian government is that the identified utility associated with the virtual currency can cause a variety of chaotic types of issues like money laundering along with terror financing, however this is needed to comprehend that the various types of issues are present with all the identified nations and they have implemented effective methodology as well as frameworks to help in curbing such type of activities. It is considered the me to frame the most effective set of law as well as regulate the identified cryptocurrency rather than treating from it along with banning it. Since the identified transaction is considered to b legalized but the same has not been offered a status regarding the legal tender, this become an issue when it is in association with the identified operations.
The lifting regarding the ban by the identified supreme court will not offer any kind of solution to the problem, there is the need to put into place an effective framework so as to make it work. The not so welcoming defiance associated with the identified government is considered to be making it challenging to come on an equal type of footing with the other developing nations who are not solely allowing the identified transactions in the identified virtual currency but also in encouraging the same. In the recent times, the identified Central Economic Intelligence Bureau suggested an Identified proposal to the identified Central government to help in imposing an 18% GST, the identified government can help in the generation of 40,000 crores associated with the revenue in the year. The same is considered to be very appropriate as well as necessary after the identified loss in the identified economy due to the identified pandemic. The identified CEIB further is involved in proposing to facilitate the categorization of the identified cryptocurrency under the identified intangible types of assets, the identified proposal usually suggest that with the identified implementation regarding the suggested types of conditions there can be the presence of a huge type of benefit in regard to revenue (SHRIVASTAVA, 2019).
It is important to comprehended that imposition regarding the 18% tax as well as allowing the identified trading associated with the cryptocurrency is not going to help in the solving of any kind of issue but this may help in increasing it. It is needed for the identified government to help in facilitating such types of transactions rather than imposing such types of high tax rates which will eventually force the identified individuals to trade it in the illegal means and this can lead to tax evasion. There is the need for setting proper legislation as well as a regulatory type of body which could help in the regulation of the transactions as well as in offering dispute types of resolutions. The identified tax which is imposed on any of such types of transactions need to be reasonable as well as practical.
Understanding what cryptocurrency is all about is essential and this can be achieved by understanding the fundamental features associated with it. First and foremost, it is vital to understand that they are secure. This is because they are usually secured by the cryptography codes along with they are usually locked through the use of a public cryptography system. Each of the owner has a private key and no other person can attain accessibility to the private key (Werbach, 2018). Nonetheless, another key feature is that the identified transactions entailed in the cryptocurrencies are usually irreversible. When an individual uses cryptocurrency such as bitcoin, an individual needs to offer the confirmation prior to the identified transaction happening. Once the individuals offers the confirmation, the identified transaction would be started and no one else can stop the identified transaction.
Nonetheless, another key feature is that there is no need for permission. While utilizing it, there is no need to take permission from someone else. That means that there is no need for the gatekeepers who will be involved in stopping from utilizing the identified currency. All an individual needs is to install the free software and utilize it. This gives a lot of freedom to the identified users. Nonetheless, another key feature is that it is super fast. If an individual starts a transaction, it is usually immediately caught up in the identified network as well as it is usually confirmed just within the two minutes of time (SHRIVASTAVA, 2019).
Moreover, it is vital to note that the currencies do not care about the identified specific location. All the types of transactions are usually taken the same time as well as would be treated in the same way. It is also vital to note that the real world identified can be kept in disguise. Most of the people are usually sacred when they require to share their actual identities online. In the identified case regarding the cryptocurrencies, the people do not need to offer the real world types of identities. All that is needed is the address that possesses around 25 characters and the access can be done easily.
There is the issue of scalability. This is considered to be the biggest concerns when it comes to cryptocurrencies. While the identified number associated with the digital coins as well as adoption is considered to be increasing at a rapid stage, it is still dwarfed by the identified number associated with the transactions that payment giant, VISA, is entailed in processing daily. Moreover, the identified speed associated with a given transaction is another key feature and metric that the identified cryptocurrencies cannot rival with on the same type of level as the players such as VISA as well as the MasterCard until the identified infrastructure delivering these types of technologies is highly scaled (Werbach, 2018).
There are also the issues associated with cybersecurity that hinder the efficiency of the technology. Cryptocurrencies are considered to be subject to cybersecurity issues just like any other kind of digital technology. There is already the evidence of this as perceived with the identified multiple ICOs that are getting breaches as well as they are costing the investors hundreds of money such as one of the attacks was considered to cost about $473 million. Mitigation of this issue will need the progressive upkeep associated with the security associated infrastructure but there are many players handling this directly and utilizing the enhanced cybersecurity measures that are higher and better than those used in the traditional banking industry.
There is also the issue of prove volatility along with the lack of an inherent type of value. Price associated volatility that is linked to the lack of the inherent value is considered to be a key issue as well as one of the identified specifics that are involved in buffeting in reference to the specific time when the featured cryptocurrency ecosystem was perceived as being a bible. It is a key issue, but it can be overcome by connecting the identified cryptocurrency value directly to the identified tangible along with the intangible types of assets. Increment of the adoption aspects should also lead to an increment in the identified consumer associated confidence as well as reduce this type of volatility (SHRIVASTAVA, 2019).
Regulations are also considered to be a key issues. It is important to note that at the moment the use and adoption of cryptocurrencies is not regulated in any way. It is considered to not be under any type of control nor supervision. Even if all the issues associated with the identified technology are sorted and effective measures put into place, without the regulation as well as the adoption of this technology by the government, there will be the issues of an Increment of the risk in the investing aspects in regard to the technology (Werbach, 2018).The other concerns associated with this technology are usually considered to be mostly logistical in their nature. For instance, such as changing the identified protocols which usually become necessary when the identified technology is being enhanced can be considered to take a long time along with interrupt the identified normal flow regarding the given operations.
There are a variety of advantages that are associated with the cryptocurrencies in any kind of economy. First and foremost, there is the user associated autonomy. The fundamental draw associated with Bitcoin for most of the users and indeed one of the identified Central tenets associated with the identified cryptocurrencies technology is considered to be autonomy. Digital currencies usually allow the identified users more autonomy over their own type of money than the identified flat currencies usually do at least in the theoretical nature. Users have the capability to control the manner in which they usually spend their identified money without having to deal with an intermediary type of authority such as a bank.
There is also the advantage of discretion. Bitcoin purchase are usually considered to be discreet. Unless an identified user is involved in voluntarily publishing their bitcoin transactions, their purchases are never in any way related to his personal type of identity much like the cash only types of purchases and cannot be easily traced back to the individual (SHRIVASTAVA, 2019). The anonymous type of bitcoin type of address that is often generated for the identified user associated purchase usually get altered with each type of transaction. This is not usually to say that the identified bitcoin types of transactions are actually anonymous or wholly untraceable, but they are usually much less readily connected to the personal associated identity than most of the traditional types of payments.
There is also the advantage that entails the peer to peer type of focus. The bitcoin type of payment systems. This means that the identified users are capable of sending as well as receiving payments to as well as from anyone that is on the identified network around the globe without needing any kind of approval from any kind of external source or even authority. There is also the advantage that is associated with the elimination of the banking fees. While it is usually considered to be standard among the identified cryptocurrency types of exchanges to alter the fees involved along with the occasional deposit along with withdrawal fees, the identified bitcoin users are usually not subjected to the identified litany regarding the traditional banking types of fees reakted with the flat currencies. This is used to mean that no account associated maintenance or even minimum type of fee balance as well as no overdraft chats and no kind of returned deposit fees among many more.
There are also low transaction fees for the global types of payments. This is considered to be a key advantages for the travelers. The transactions also happen very fast which helps in the elimination of any kind of inconvenience regarding the identified typical authorization necessities along with the identified wait periods. It also has the benefit of accessibility. This is to mean that it is considered to be available to all the types of populations regarding the identified users without any kind of accessibility to the identified traditional banking types of systems along with the credit cards and other types of payments. It also allows for the mobile type of payments. This is used to mean that the identified purchasers usually never have to travel to any kind of bank or the store to purchase the given commodity (SHRIVASTAVA, 2019).
Explanation of the Virtual Currencies Vs. the Flat Money
The concept associated with the flat money is one that has evolved over time as well as the identified essence regarding the same has transformed to the trust from the identified object. The terminology can also be comprehended as being a setup under which the identified individuals usually place their identified faith in the given government whereby the identified government is considered to be the sole type of authority which makes the decision upon the identified treatment regarding money. To some of the individuals, the identified idea seemed as being an issue as well as they perceived a risk of being fooled and cheated (Narayanan, 2016). Under this type of setup the identified transactions will be recorded in the central type of ledger and no other entity except the government can have access to it. This gives rise to an essential issue regarding power. The individuals who were involved in criticizing the identified system were considered to be skeptical regarding the identified government action along with the identified intention and they desired a type of system which possessed the least chance of getting corrupted.
This is considered to have become the key reasons that is behind the identified invention regarding the identified cryptocurrencies. The key idea in this case was considered to take away the identified power from one central type of system and distribute it to all the identified users and also in curbing the identified chances associated with physical tampering. The idea associated with the creation of a virtual type of currency is usually somewhat progressive but it has not yet been offered a legal tender type of status by any nation.
Virtual currency was founded in the 2009 and is considered to be available in a definite form of numbers. Virtual currencies are considered to be digital types of assets which are usually formulated by an unknown individual through the use of an alias regarding Satoshi Nakamoto. The identified medium is usually formulated with an identified motive to help in facilitating a decentralized form of currency system through a digital type of platform in the same manner that people send texts along with emails (Bashir, 2017).
Procedure for Attaining Cryptocurrencies
Cryptocurrency is usually based on the identified term cryptography which is used to mean the solving of codes or to facilitate the identified generation of a key for any kind of encrypted program. The generator usually hides these types of currencies behind the unsolved type of encrypted code which is usually unreadable to the identified individual without having an effective type of encryption code or even the given key and the identified whole procedure associated with seeking a key is usually referred to as Mining which is identified as being one of the key methods for the generation of cryptocurrencies.
Putting dependence on the identified above explanation, it is considered to be comprehensive that a single way of Attaining a cryptocurrency is identified as being mining which is identified as being the trickiest one because it is very challenging to get a portal to engage in mining as well as it an individual found the same, there is a great probability that one could not effectively solve the identified encryption code. It also took a huge amount of time as well as electricity since on needs to mine for a long time to attain the key to the identified code. Another easy and efficient technique that can be used in Attaining a cryptocurrency is identified as being the purchase of it from a person that has it. One can actually spend the actual money along with buying it through distinct mediums as well as apps that are available on the identified internet. Finally, an individual can also attain a cryptocurrency by accepting the identified payment in the form of a virtual currency in exchange for any kind of service that is offered by them (Lewis, 2018).
Chapter 2- Introduction to Research Methods
Technology has developed in the past decade. There are numerous technologies that have emerged due to the technological advancements that have been made in the world. One of these technologies is the cryptocurrencies. Cryptocurrencies have become the key topic in the blockchain technology in the world in different continents such as Europe along with Asia and Africa. The key focus is on Asia which has a high population but has low rate of cryptocurrency adoption. Cryptocurrencies are associated with numerous issues which have hindered India from adopting the technology and the issues of regulations remains a key hindrance to the legalization of the technology. The research paper analyses the present as well as the future of the cryptocurrencies in India so as to offer a comprehensive understanding of the issues that are hindering effective and complete legalization of cryptocurrencies in India.
Objectives of Study
The following study is aimed at offering enhanced understanding of the various goals as well as objectives that are associated with the concept of cryptocurrencies in India. The key objectives of the study entails;
· To analyze identified effect associated with Cryptocurrencies on the Indian Economy
· To effective study the current status regarding cryptocurrencies in India
· To analyze the future of Cryptocurrencies in India
The following study is based on two key hypotheses to facilitate efficiency along with the identified feasibility regarding the study. First and foremost, the study assumes that there are no plans underway to regulate as well as control the cryptocurrencies technology along with the study is based on the assumption that many people are already using cryptocurrencies for their daily life.
Scope of the Study
The following research paper aims at analyzing the history as well as the background information regarding cryptocurrencies in India for enhanced understanding of the identified foundation that will help in forming the basis on which the entire study will be built upon. The paper uses a comprehensive analysis to explain the concept of cryptocurrencies in India while basing a key focus on the Specific aspects of the rise of the technology in India as well as the development of the technology over time in the state of India and offers recommendations for the future implementation regarding the technology. The study also offers suggestions on how future research can be enabled so as to attain increased efficacy along with efficiency regarding the concept cryptocurrencies through increased knowledge that is readily available for people to study.
Data Collection Methods
A pilot type of study has been carried out in regard to this case study with an aim of collecting data regarding the distinct aspects associated with Cryptocurrencies. The survey was aimed at enhancing the measurement of the spread regarding the identified use associated with the cryptocurrencies to possess a clear along with a comprehensive type of picture from the identified practical view. It was also entailed in the exploration of the various types of cryptocurrencies that the identified participants utilize as well as the various times that they usually utilize it and the manner in which they spend it in their daily life.
Moreover, it is vital to note that the identified survey also effectively explored the identified confidence of the participants in regard to delaying with the identified cryptocurrencies in a time that utilizing the type of virtual money is not wholly controlled as well as regulated by governments not only in India but in the whole universe. The identified survey also was entailed in the investigation of the various expectations associated with the identified participants in regard to the identified future associated with cryptocurrencies.
The actual study entailed the use of the surveys as well as questionnaires. The surveys along with the identified questionnaires entailed 21 questions which were expected to be effectively answered in a short slab of about 5-20 minutes so as to help in saving the identified participants their time along with encouraging them to willingly take part in the survey. The study also utilized the online survey website that is defined as the Survey monkey to come up with the effective type of questionnaire which then was disseminated online through the use of Facebook network along with the identified cryptocurrencies forum associated websites. The website Research Gate was also used in the collection of data from the 45 multinational internet users as well as most of these users were Indians. By filtering them, it was easier to find that 31 surveys were efficient for the study due to their identified validity and they were feasible for analysis whereby the others were not fit enough to be used in the study.
Secondary sources of data which entailed peer reviewed articles as well as journals were used to offer support to the data that was attained from the surveys as well as questionnaires. The articles along with the journals used were published within the last 5 years thus offered high level of credibility as well as feasibility for the research paper. The key focus while using the secondary sources of data is to have an increased awareness along with knowledge on the different aspects associated with the cryptocurrencies Technology in India.
Most of the identified participants for this study were aged between years 21 to years 30 old and they were considered to be a representing of 61.29% regarding the whole participants. Participants who were aged between the years 31-40 acted as a representing of 32.6% whereby the participants that were aged over 30 years old were a representing of 77.42% whereby the remaining participants were individuals who were in employment (LEISING, 2020).
Technique used for Analysis
The techniques used for the analysis of the collected data entails MANOVA which was used to understand the way the rise of cryptocurrencies as well as the current and the future of the cryptocurrencies in India is by looking at the years and analyzing the Information provided for each of the years. There was the use of the Durbin along with Watson method for testing the no serial correlation that exists between the different types of cryptocurrencies that are mainly used in India.
Limitations of study
The limitations regarding this study entails the unwillingness of most of the users to take part in the surveys due to the limited amount of time offered. It was also hard to know if the participants that took part in the study were telling the truth because it was hard to test their genuineness. This is inconveniencing for future further research because using figures and Information that is biased can reduce the feasibility of the study. Nonetheless, the limited time needed to carry out the surveys as well as analyses the data in in depth while looking for secondary sources of data for references can be tiresome and cumbersome.
Chapter 3- Literature Review
Cryptocurrency in India
The effects of the cryptocurrency technology on the identified Indian Business Economy is comprehensively depicted as the identified prices associated with the identified cryptocurrency market are currently collapsing. The Indian government has made it clear with their identified stand regarding not offering a legal status for the identified technology of cryptocurrency in the country (LEISING, 2020). The identified reason for this type of a decision from the identified government usually hails from first, the identified challenge associated with the monitoring of the identified decentralized type of transaction in the identified cryptocurrencies are challenging to trace which can be beneficial for the hackers along with the criminals and also for the various terrorist associated activities. The second reason is that the identified technology for cryptocurrency associated market could be a leading rival for the identified banking service type of industry.
Cryptocurrency such as bitcoin is one that has gained popularity in India like other countries as the identified volume regarding the Indian rupee being traded in the identified cryptocurrency have been considered to be at the identified highest post demonetization. Various researchers reveal that the identified volume which is generated by the identified rupee dominated type of cryptocurrency is considered to be the third greatest volume which is usually traded after the identified American dollar as well as yen (In Hacker & In Eich, 2019). The identified demonetization policy of the year 2016 may have helped by encouraging the identified implementation regarding the identified cryptocurrencies amongst an identified substantial share associated with the market in the identified nation. Despite the fact that it has enormous population, India solely contributes about 2-3 % regarding the entire market of cryptocurrency in the whole universe in regard to market associated capitalization.
There are some limitations that are present in the cryptocurrency in India which make it hard for the nation to fully accept its use in the nation. First and foremost, there is the issue of reliability as well as security. Cryptocurrency for its identified characteristic associated with the digital mode regarding transaction, it has been a very common type of platform for the identified hackers along with the identified terror finance, drug associated transaction and even money laundering issues. This has led to tiredness among the identified population to the identified larger extent since it usually brings lesser security as well as is associated with lack of dependence. Another issue is that it is speculative along with risky.
There are a variety of kinds of cryptocurrencies that are considered to be available in the identified market as well as these types of cryptocurrencies usually function on the identified speculative market that it usually creates. Not all of the identified cryptocurrencies are able to fetch effective returns for the identified cryptocurrency investor. The identified price is usually decided upon the identified demand associated supply regarding the technology of cryptocurrency. Speculation usually becomes the identified key players in the case of the pricing of the identified cryptocurrency thus the risk element usually comes in (In Hacker & In Eich, 2019).
Cryptocurrency in India is also associated with taxing trouble. The identified income associated tax rules do not make it clear on the identified taxability associated with the technology of cryptocurrencies benefits. However, the identified income tax associated authorities have not ruled out the identified probability associated with taxing the identified gain out regarding the given cryptocurrency if any investors is involved in making any kind of capital gains from the identified investments associated with the cryptocurrencies, it usually invites the identified tax associated liability as being a long term capital associated gain or even the identified short term capital dependent upon the identified period associated with the holding the identified cryptocurrency (Brummer & Brummer, 2019).
Another issue is lack of a regulatory body. The government of India is following an identified wait as well as a watch type of policy towards the identified cryptocurrencies whereby as the identified other types of nations of the universe have already made positive reasons to the identified utility regarding cryptocurrency. There are no any kinds of regulatory body to comprehensively look after the identified transaction associated with the cryptocurrencies. This has caused an increment in the cases of fraud as well as threats to the identified investors associated protection, monitoring of the identified movement associated with money in the given economy. Research Bank of India as well as with other types of central banks associated with the global was incapable of tracking the identified activities associated with the given cryptocurrencies.
There is also the issue of price volatility along with the KYC norms. Cryptocurrency is considered to be a highly volatile type of market since the identified pricing strategy relies upon demand along with supplies as well as with speculation thus an identified investor who signs up for the identified cryptocurrencies associated transaction have to go under the identified KYC types of norms which usually take some time for the identified approval by the identified respective types of wallets (In Hacker & In Eich, 2019). This identified approval time taken is usually variable from one wallet to another and usually it any even take some time. In such associated types of cases the identified investors tends to lose the identified change associated with making the identified profit as being the identified value associated with the currency would be fluctuating at a greater pace.
Present and Future of Cryptocurrency in India
Currently, there are no regulations on cryptocurrencies in India. The identified absence of these regulations on cryptocurrencies have made some types of cryptocurrencies such as the bitcoins exchanges like Zebpay and many others to start their identified operations in the trading as well as taking part in the KYC norms. The RBI initially was considered to be against the identified trading of the given cryptocurrencies in the state of India, however in the year 2014, the bank showed its interested in the identified Blockchain technology utilized by the cryptocurrencies to help in the minimization of the physical paper type of currency circulation (International Congress on Blockchain and Applications & In Corchado, 2020).
In the year 2015, an identified financial associated stability report was considered to have been published by the identified RBI to help in the identification of the given importance associated with the private Blockchain. In the year 2016, ICICI bank with the prominent Emirates NBD in regard to assets one of the identified largest banking group that is in the Middle East has been involved in the identified execution of the identified types of transactions as well as remittance utilizing the Blockchain Technology. Then in the year 2017, a white paper was issued by the prominent institute for Development and Research in Banking Technology as well as a pilot test was also carried out.
The identified union finance minister in his Union Budget in the year 2018speech stated that the identified government of India does not put into consideration the cryptocurrencies legal tender or even coin and will take all the stringent measures to help in the elimination of the identified utility regarding the cryptocurrencies involved in financing the illegitimate activities or as being a part of the identified payment systems. However, the identified government has recognized that Blockchain technology is essential and they stated that the distributed ledger system or even the identified Blockchain Technology is essential in allowing the identified organizations of any chain regarding records or even the identified transactions, without the identified need of the given intermediaries (In Hacker & In Eich, 2019).
The identified government will be involved in the identified exploration of the utility regarding the Blockchain Technology proactively for effectively ushering in the digital economy. Though it is vital to understand that the identified government is involved in putting into consideration the identified cautious approach on the identified cryptocurrencies but it is bullish on the identified utility regarding Blockchain Technology. Cryptocurrency industry has a firm belief that the identified Blockchain as well as cryptocurrencies have to be collaborative (Brummer & Brummer, 2019). But unless as well as until a decentralized type of system is created, it is considered to be as good and effective as keeping track. If solely Blockchain Technology is to be effectively accommodated that just takes part in the building up of a centralized type of system which offers authority to an identified Individual or even a body to correct as well as enhance it.
Experts as well as the observers in the identified nation hope as well as predict that the identified government will be involved in the identified regulation of the technology of cryptocurrencies in India in the distinct types of stages. This type of favorable as well as the positive signs usually offers holes to the identified industry associated with cryptocurrencies . Meanwhile it is vital to note that the identified private organizations that are dealing with cryptocurrencies have set up an identified association that is called the Digital Assets and Blockchain foundation which has been considered to be enhanced in the education of the public on the various benefits as well as investment avenues entailed in the cryptocurrency technology by carrying out various security checks as well as in the identification of the various documents that are provided by the identified government and the permanent account numbers (In Hacker & In Eich, 2019).
As the identified arrival regarding the internet, cryptocurrencies also possess the huge growth potential. With the identified assurance associated with both these elements associated with the internet along with the Blockchain Technology, in future there are key probabilities associated with the virtual banks that are present in India. Hence to prove it on a positive note, the identified reserve bank of India has put into consideration the identified initiatives to launch its own type of cryptocurrencies that are named as Lakshmi.
Rise of Cryptocurrencies in India
India with an identified population that is considered to be over 1 billion string has been on something regarding an economic kind of renaissance in the previous years. Such has been considered to be the identified extent regarding the identified growth along with the development of the nations that the identified IMF has called it to be the fastest growing emerging type of economy. More than about 40% regarding the population of the nation is considered to have accessibility to telecoms along with the internet services (Hassani & Silva, 2019). A nation that is steeped in mystery as well as history and even culture it is also not one to fall behind when it comes to the identified technological development. Bitcoin along with other cryptocurrencies have been in operation within India for some time now. This section looks at the cryptocurrency market in India.
As early as the year 2012, the identified small scale Bitcoin transactions were considered to be already taking place within the identified nation. These were considered to be the still early days in the identified advancement regarding Bitcoin when the identified crypto hobbyists were considered to be interested in the bitcoin technology. By the year 2013 Bitcoin was considered to be beginning to attain a level of popularity that was considered to be spreading across a variety of nations. That same year, a few businesses stated to accept the identified bitcoin payment. A vintage era pizza shop that was called Kolonial in the Worli area of the great Mumbai became the first restaurant service in the state of India to accept the identified bitcoin payments.
In a short time, the identified cryptocurrencies exchanges started to develop in the nations. Pioneers such as Unocooin and many others started offering the identified cryptocurrencies exchanges as well as the trading types of services in the nation. Over time, others such as Koinex were considered to be added. With the identified proliferation associated with the famous crypto trading as well as the identified exchange types of platforms, the identified crypto market in the state of India has developed from its identified modest level in the year 2913 to what it is considered to be in the current day. Apart form these types of online exchanges, there are also an identified number regarding the over the counter crypto stores in the nation. A variety of bitcoin ATMs in the key Indian cities as well as economic hubs have become common ever since (Danial, 2019).
On the month of November in the year 2016, the Prime Minister Narendra Modi made an announcement that the start of a demonetization policy had begun for India. This type of move by the identified government to carry out the demonetization aspect approximately 86 percent regarding the paper currency of the company was a move that sent shockwaves across the identified subcontinent of India. Individuals with the large cash holdings needed a current means associated with holding such type of wealth without having to incur any kind of essential tax issues as well as sundry government associated scrutiny (January, 2021). It became a common type of practice for some of them to purchase the large orders of bitcoins or other types of cryptocurrencies as well as then sell them at a later date. This usually meant that they were appropriately circumventing what would have been the identified considerable taxes if they had made any kind of trials to circulate their identified wealth via the banking associated system.
The demonetization policy also caused a widespread criticism regarding the identified mainstream financial associated scene in the nation. In the identified space of 24 hours, about 86 percent regarding the paper currency on the nation in circulation had been considered to be valueless by butte regarding a single government type of proclamation. Realizing that the identified flat money is not exactly actual money since it is not backed up by anything. Indians started to looks for the alternative currency models. Most of the Indians, especially those that were in the 40% bracket with the access to the internet starter to use the bitcoin technology along with other types of cryptocurrencies investment (Brummer & Brummer, 2019).
This type of policy may have been involved in spurring the identified adoption regarding the cryptocurrencies among a considerable type of portion regarding the identified population but actualities started to emerge which have stifled the identified growth regarding the given market in the nation. Despite its huge population, India is considered to solely contribute 2 percent regarding the whole global cryptocurrencies market associated capitalization. The small role that is being played by the such type of a large economy can be considered to be attributed to the high level of cryptocurrency prices as well as the RBI government crackdown. The identified general level associated with the prices of cryptocurrencies in the state of India is considered to be on the higher side. The identified market rates are considered to be relatively higher by as much as 5 to 10 % as compared to the identified global average (Brunton, 2020).
This is to mean that the Indians fan solely get involved in the identified peripheral participation in the identified Crypto trading as far as the global crypto exchange platforms are concerned. Lack of a large scale mining facilities as well as the strict government restrictions on the global money flow is also considered to make it highly challenging for the identified Indians to transact with most of the large scale foreign crypto associated exchange platforms. The identified RBI has been considered to be consistent in warning the identified businesses associated with the risk related with the cryptocurrencies (Brummer & Brummer, 2019). While the identified government regarding the nation has not been involved in banning the identified cryptocurrencies, they have not exactly been endorsing it. The coming months are going to reveal the identified direction in which the identified crypto market will move as the identified state of India is concerned.
Chapter 4- Data Analysis, Interpretation and Presentation
Diagram Representation & Statistical Analysis
As of the month of March in the year 2018, there have been 1564 cryptocurrencies that are considered to be available as well as traded in an approximate 9422 exchanges. The identified market associated capitalization regarding all of the identified cryptocurrencies is considered to be $275,797,435,861 which is $275 billions. The 24 hours volume was considered to be $18,207,953,654 which is considered to be $18 billions (In Salman & In Razzaq, 2018).
The prominent CEO of the IMVU game corporation was involved in comparing the identified virtual currencies to the identified airline miles which are usually considered as being a form of the identified virtual currency so as to enhance its understandability as well as he defined them as being some type of symbolic currencies that an individual can accumulate as well as then switch then into something that they care about. Virtual currencies are considered vital as they help in facilitating the identified trading Activities along with the identified completion of the various financial associated transactions for the various types of the users. At the same time, they were involved in making the way of earn as well as spend, exchange and the accumulation of the identified money that people hold in their daily lives to be easier as well as highly convenient.
They are usually utilized to carry out the identified purchase regarding the identified virtual goods that are considered to be inside the same type of environment or to facilitate the exchange of the identified currencies among the various types of platforms as illustrated in the figure below. Nonetheless, they are usually utilized to make the purchase of the digital as well as the physical goods. Therefore, it is vital to know that the identified virtual currency is vital in the provision of the high level of opportunities for the organizations as well as the identified operators to help in monetization of their identified applications as well as then enhancing their revenues (In Kraus & In Hari, 2019).
There are numerous kinds of cryptocurrencies which are usually implemented in the distinct platforms entailing the identified cryptocurrencies in the given social networks. Cryptocurrency in the identified social games along with the loyalty points and even the identified cryptocurrencies in the peer to peer networks are all forms of cryptocurrencies that are usually utilized in India. These platforms can be classified into two key categories which are the centralized as well as the decentralized cryptocurrencies types of platforms. The identified centralized cryptocurrencies can be defined as being a cryptocurrency system which possesses a centralized repository which is considered to be the same to the identified Central Bank. The identified administrator regarding the given repository is usually considered to have full control regarding the identified transferring of the given cryptocurrency value that exists between the identified persons or even from one location to the other (International Congress on Blockchain and Applications & In Corchado, 2020).
While the decentralized form of cryptocurrencies can be referred to as the identified cryptocurrency system which lacks a centralized repository and possesses no single kind of administrator. The decentralized cryptocurrencies can be attained through the computing as well as manufacturing efforts. Most of the business types of Activities can be entailed in the cryptocurrency categories which include Facebook along with Amazon among other as depicted in the diagrams below.
Fig: Examples of buying CC with real money
Obtaining and Generating Cryptocurrencies
Since it is evident that there is no universal Virtual currency across the identified digital medium, there are a variety of distinct ways as well as methods to attain or even to help in the identified generation of the identified virtual types of currencies. This section offers the most prominent ones which are used in India which is the key focus of the research paper. First and foremost, there is pay for cryptocurrency approach. This is a key approach which is involved in allowing the identified adult utilizers as well as the identified gamers who are aged between ages 18 as well as over to make payments for the identified cryptocurrencies utilizing the actual money or even the equivalent in the actual monetary system like the pre paid types of cards as well as the identified card or even the e payment types of systems like PayPal.
Each of the identified cryptocurrencies type of platform is considered to have its own pricing as well as exchanging rate which is involved in the indication of the identified smoky t associated with the purchased type of currency. The identified purchases virtual currency in this type of approach is usually stored in the accounts of the buyers which are usually created within the identified platforms by the given operators. The figure below illustrates one of the examples regarding this type of approach whereby the identified users can effectively make payment of the actual money for the identified cryptocurrencies. This type of method is considered to be restricted to over 18 years old in most of the identified platforms (Brummer & Brummer, 2019).
There is also the offer based type of method. Most of the online gamers do not possess the capability or even the identified means to make payment with the identified cash associated options for the identified cryptocurrencies. The offer based method are essential in helping the identified users as well as the gamers whether they are audits or even minors to earn the identified cryptocurrencies by watching the Advertisement ads as well as taking part in the surveys, winning games level along with effective sighing up for an identified trail form of subscription. Users in this case are just needed to complete the identified promotional activity so as to attain the identified points as well as credits that are necessary so as to fund their identified accounts which are usually created within the identified game associated platform. The figure below illustrates some of the examples regarding the manner in which to earn cryptocurrencies by this method. This approach is considered to be one of the safest ways that can be utilized in earning along with the generation of the identified cryptocurrencies (In Kraus & In Hari, 2019).
The other method is the loyalty based type of method. In this approach the identified customers as well as the gamers usually earn points as well as credits which are considered to be forms regarding cryptocurrencies as long as they are considered to stay with the identified cryptocurrencies provider. Commercial companies along with the games types of operators usually reward the identified customers for their identified loyalty by offering them the identified point that are considered to be redeemable towards the identified future types of purchases. These types of points are also considered to be exchangeable with the identified vouchers as well as discounts and even gifts. Customers usually earn points whenever they are involved in making the identified purchases from the identified loyalty points provider’s products or from other types of collaborating organizations. For instance, the identified nectar points, loyalty point scheme that is in the UK can be earned through the purchase of the actual goods as well as items from the several partner organizations like the famous Hombade types of stores. Nonetheless, the identified users can be involved in combination between this type of method as well as the identified method associated with paying for the identified cryptocurrencies.
There is also the effort based type of method. This type of method is usually used for the decentralized form of cryptocurrencies like the bitcoin. It is identified as being a mechanism associated with the generation of the identified curtain money that is in the peer to peer types of networks. There will be the fixed as well as the immutable and the finitely number regarding the generated virtual types of coins in the identified bitcoin which will be equal to 21 million units and there will be no more to that. Unlike other kinds of cryptocurrencies whereby it is usually generated by one or even more central type of authority, bitcoins ate usually generated by the identified network peers. The identified Network users can use socialized Software for this purpose (Birch, 2020).
Dominance of Cryptocurrencies in India
The bitcoin is considered to have a maximum dominance in the identified cryptocurrencies market with an approximate of about 45% regarding the identified market share as well as the identified market associated capitalization regarding$142.2 billions which is 9.25 trillion in Indian rupees. Its identified market price is considered to be $8254 which is considered to be 5.36 million in Indian rupees. Other cryptocurrencies excluding the bitcoins ate usually referred collectively as altcoin. In India there are other 1550 cryptocurrencies which are usually traded. Some of these currencies are mentioned in the table below.
$142. 2 B
$ 52.97 B
$ 25.92 B
$ 8.52 B
$ 78.16 M
Summary statistics of the exchange rates and log returns of the exchange rates in India of the seven cryptocurrencies
Table 1 and 2 below offer summary statistics of the exchange rates as well as the identified log returns associated with the exchange rates in India regarding the seven cryptocurrencies that are considered to be highly used in India and in other nations respectively. In the first table, the identified summary statistics for the identified raw exchange associated rates associated with the identified cryptocurrencies, there is a simple reflection regarding the worth or the identified value regarding each of the identified currency. It can comprehensively be perceived that the identified exchange rate is considered to be approximately $0.0002 USD to a single dogecoin. This is essential in Supporting the identified evidence that the identified Dogecoin is basically utilized as a form of currency for the online tripping, instead of being a currency for the identified standard associated payments. It possesses the lowest minimum as well as the first quartile, the median, the mean and even the identified third quartile and the maximum values (In Kraus & In Hari, 2019).
In contrast, being the most famous cryptocurrency, Bitcoin is considered to have the highest minimum which entails the first quartile along with the identified median, the mean , the third quartile and the maximum values. This shows that it has a higher significance along with a higher level of value to those individuals who have a vested interest in the identified cryptocurrencies. The identified enhanced rates associated with all of the seven currencies are considered to be positively skewed with the Litecoin as we as Monero and Ripple having significantly higher level of peak than the identified normal dissemination (In Salman & In Razzaq, 2018).
The identified exchange rates regarding Dogecoin along with Ripple and MaidSafeCoin are considered to possess the smallest variances and even the identified standard forms of deviations which indicates that their identified low volatility can perhaps be illustrated by the identified low values associated with the identified exchange rates coupled with the identified fact that their identified range as well as the interquartile ranges are considered to be very much limited. On the other hand, Bitcoin along with Dash and even Litecoin exchanges rates reveal the highest level of variances as well as the identified standard deviation.
Table 1. Summary statistics of daily exchange rates of Bitcoin, Dash, Dogecoin, Litecoin, MaidSafeCoin, Monero, Ripple and Euro, versus the U.S. Dollar from 23 June 2014 until 28 February 2017.
Table 2. Summary statistics of daily log returns of the exchange rates of Bitcoin, Dash, Dogecoin, Litecoin, MaidSafeCoin, Monero, Ripple and the Euro, versus the U.S. Dollar from 23 June 2014 until 28 February 2017.
Table 2 offers a summary statistics for the identified log returns associated with the exchange rates regarding the seven types of cryptocurrencies. In this case, the identified log returns reveal some of the slightly distinct outcome. Dash as well as Monero and MaidSafeCoin possess the lowest minimum types of values while Dash as well as the Litecoin possess the largest maximums. The identified means as well as medians regarding the log returns associated with all the seven types of currencies are considered to be the same and almost equal to zero. Solely the identified log returns associated with Bitcoin as well as Litecoin are usually positive skyward, all the Monero are usually negatively skewed with Dogecoin being the most vital one.
Log returns regarding all of the seven types of currencies are considered to have a higher peak which is considered to be above the normal dissemination. The most peaked are those of Dash as well as Dogecoin and Litecoin. It is important to note that as much has been illustrated regarding the volatility associated with the Bitcoin returns, the identified log returns associated with Bitcoin possess the lowest type of variance as well as the identified standard deviation regarding the seven types of cryptocurrencies. Those that possess the highest variations are considered to be Dash as well as Monero and MaidSafeCoin (Birch, 2020).
Also revealed in the Tables 1 and 2 are considered to be the identified summary associated statistics regarding the identified exchange rates associated with the Euro as well as the identified summary statistics associated with the log returns. For the identified exchange rates, the Identified sunset statuses for the identified Euro usually appear as being much smaller than those regarding Bitcoin but are comparable to those associated with the other types of cryptocurrencies (In Kraus & In Hari, 2019). For the identified log associated returns regarding the given exchange rates, the identified summary Statistics for the given Euro usually appears smaller compared to all the other types of cryptocurrencies. An exception is identified as being the coefficient of the given variation. The identified magnitude regarding this guan statistics for the identified Euro usually appears to be largest as compared to all the other types of cryptocurrencies.
Fitting regarding a statistical type of distribution usually is involved in assuming that the identified types of data are considered to be independent as well as evenly distributed that is randomness, have no any kind of the serial correlation and possess no any kind of heteroakedasticity. The survey tested for the identified randomness through the use of the different signs as well as the rank tests. There was the use of the Durbin along with Watson method for testing the no serial correlation. All of these tests showed that the identified log returns associated with the exchange rates regarding the seven types of cryptocurrencies in India can be assumed to be approximately independent as well as identically disseminated, lack any kind of correlation and lack no heteroakedasticity (Brummer & Brummer, 2019).
Chapter 5- Conclusions and Suggestions
With all the identified potential issues as well as challenges to the mass adoption, it is only logical that the identified experienced types of investors such as the prominent Buffet Warren make a choice to err on the identified side that is safe in regard to the technology of cryptocurrencies. People have knowledge that the identified cryptocurrencies as well as the Blockchain Technology will be in the world to stay since it is a type of technology which has been developing in different ways since it was introduced in the identified universe (Brummer & Brummer, 2019). By understanding this the steps as well as the measures that will be implemented will be on a logical way.
They provide too many benefits to the identified consumers as well as users that have already started using them and the benefits are what the identified users want in the currency world today. Decentralization as well as transparency and even flexibility being key benefits among all the benefits that are entailed in the cryptocurrencies. Expansion of the identified Discussion to everything that the identified blockchain can attain across the various industries is considered to double reinforce this identified point.
Cryptocurrency provides a current as well as an appropriate and even an attractive type of model associated with the identified payment methods which can help in boosting the identified companies as well as the revenues of the operators that are usually involved in the cryptocurrency aspects. It also offers alternative methods of payments apart from the identified actual money which is involved in enabling the identified users to make the identified financial activities like the purchase as well as the selling and even the transferring and exchanging of money easily and conveniently. Despite the fact that the identified cryptocurrencies platforms usually are entailed in the opening of the many types of channels for the digital financing types of transactions as well as offer a current form of the currency with the distinct mechanisms as well as the techniques, they are not usually controlled as well as regulated as it is needed for enhanced efficiency as well as feasibility (Birch, 2020).
The identified research was involved in a comprehensive as well as a thorough analysis of the identified cryptocurrencies platforms in India along with offered an identified extraction of the various concerns as well as the challenges that put such type of a financial system under the identified risk. The identified lack of legislation is usually put into consideration as being the key concern in the identified cryptocurrency systems. Almost a comprehensive type of picture regarding the identified system associated with the famous cryptocurrency utility has been considered to be drawn from the analysis of the identified current cryptocurrencies literature as well as from the whole study that was carried out for the key purpose of this research.
Despite the fact that the identified pilot study has been carried out with the relatively smaller type of sample, the identified results attained from the sample and the study, revealed that there is a preliminary perception regarding the utility as well as the development, the trust entailed in the use as well as the identified future anticipations regarding cryptocurrencies (Asma & Muthanna, 2019). Through the given study, it is evident that most of the identified indications can offer initial types of answers to he identified research associated questions. The analysis in this research paper indicates that the identified cryptocurrencies is very and highly likely to be the next type of currency associated platforms because of the high volume associated with the cryptocurrencies that is considered to be flowing in the distinct systems as well as the high-level of the expansion and the growth of utilizing along with the Implementation of the identified cryptocurrencies and even the identified opportunities that the identified cryptocurrencies types of systems provide.
Nonetheless, the identified confidence as well as trust rate associated with the use of the identified cryptocurrencies is considered to be noticeably high since it can be perceived in the various types of cases which have been stated in the paper alongside the identified outcomes from the data collected. However, it is vital to understand that the identified utilizers have not realized the full type of picture associated with the use of cryptocurrencies. In fact it is vital to note that most of cryptocurrencies forms often do not deserve that much their identified trust yet. Most of the identified concerns as well as the identified challenges and even issues are considered to be existing in most of the cryptocurrency types of platforms and they are comprehensively outlined in the whole paper. Until cryptocurrencies are effectively as well as appropriately regulated and even controlled, the various utilizers need to take the extra precautions associated with the use of the virtual money (Birch, 2020).
It is very evident that the identified nature regarding the cryptocurrency are very volatile as well as it cannot be in any way accepted by the nation within the identified current type of framework, there is a need to take part in the identified adoption of some of the identified measures to help in regulation of it as well as it can be utilized in a consumers friendly manner. Putting into consideration all these, there is the need to consider some various types of suggestions that can help in dealing effectively with the use of cryptocurrencies.
First and foremost, there is the need to enforce an identified indirect regulatory type of approach which is considered to be dependent on the identified economic types of instruments. It is usually perceived as regulation of being exchanges whereby the identified cryptocurrencies are usually exchanges for the identified flat money in cases whereby the identified other types of exchanges commodities would belong under the identified realm regarding the regulation and f the identified government. This will be involved in the restriction of the identified scope associated with cryptocurrencies in the manner that it usually comes under the identified ambit regarding the other existent types of regulations.
The second thing that the state of India and other governments in the world that are aiming or are using the cryptocurrencies need to understand is that the identified regulators that they have authorized in the regulation or in the management of the cryptocurrencies need to effectively categories the identified cryptocurrencies with cautions since it will help in the definition of its identified legal nature. For instance, in the identified USA it has not been effectively recognized as being a legal tender but it is considered as being a commodity. Similarly, the identified government regarding Japan is considered to have amended their identified payment services Act which usually states that the identified cryptocurrencies is usually limited to the identified property types of values which are usually stored electronically on the identified electronic devices along with the currency and even the currency denominated types of assets are usually excluded (Asma & Muthanna, 2019).
The third suggestion is that setting up the identified minimum qualifications associated criteria for the identified organizations entailing the identified cryptocurrencies which will entail the identified redressed to the identified consumer associated grievances along with the maintenance of the specific types of records to help in avoiding the illegal utility as well as in the development of the high tech types of Software to offer effective service. This is vital to all the nations in the world as they all try to embrace the technology of cryptocurrencies (In Kraus & In Hari, 2019).
At this point, it is considered very essential to note that it is vital for India along with other nations to regulate the technology since it has become unstoppable. This needs regulation which will help in facilitating success in the identified nation among other types of nations. Putting bans is useless and will only make the illegalities associated with cryptocurrencies to grow and this will pave way for the fraud cases and hacking issues that come about with cryptocurrencies. This means that it is time to tame the identified dragon as well as make the most appropriate utility regarding the given opportunity.
The future associated with the cryptocurrencies aspects is considered to be promising from a deep Analysis of the current state that it is in. This means that the cryptocurrencies in India are revealing more kind of opportunities to help in facilitating the positive alterations as well as progress to the e-business as well as the identified e-payment types of sectors. With the identified rapid progress as well as improvement of the identified technology, the identified cryptocurrencies will not stop in any way from progressing. There are some key developed steps towards enhancing along with the expansion of the identified cryptocurrencies concepts since the study was carried out. More as well as more types of vendors are considered to be accepting the identified payment with the distinct kinds of the Cryptocurrencies as well as most of the individuals are currently highly aware of the identified potentials as well as opportunities that the technology can provide.
Current forms associated with the virtual currency have also been developed as well as spread globally in the recent times. There are different kinds of cryptocurrencies which have emerged in India which provide secure types of payment and are expanding into many other nations in Asia and Europe which are creating a highly famous type of payment service (Blockchain Economics and Financial Market Innovation: Financial Innovations in the Digital Age, 2019). The identified cryptocurrencies field is entailed in the creation of a lot of research associated opportunities as well as many studies and researches need to carried out so as to offer the necessary scientific contents that are needed to make nations have the right knowledge that is needed for them prior to the adaptation along with the implementation of the cryptocurrency.
The identified correlations that exist between the identified actual financial types of laws as well as the identified legislative type of status associated with the implementation of the identified cryptocurrencies platforms is needed to be studied gutter from a variety of distinct perspectives so as to offer diversified knowledge along with information that can be used in the comprehension of the same. Nonetheless, the identified adoption as well as the identified acceptance level also needs to be put into consideration along with more analysis with the identified larger samples. Trust as well as confidence are vital factors which need to be comprehensively investigated further in terms of the use as well as the trading of the identified cryptocurrencies forms. The further research associated scope can be extended to the development of the identified use associated cases for applications regarding the identified cryptocurrencies across the distinct sectors that are in India (Asma & Muthanna, 2019).
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