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Does Crypto Pose a Threat to Fiat Currency?

21st October 2021

The pseudonymous person, Satoshi Nakamoto or a group of persons invented Bitcoin – the first decentralized form of digital currency aka Crypto Currency in 2008 to develop an electronic peer-to-peer network of cash system without any intermediaries, like the government.

Nakamoto’s white paper on Bitcoin highlighted that the transactions would be tracked through a Blockchain, a ledger as this ledger would be distributed across an entire network that will be secured by Cryptographic means.
The paper also stated that the Bitcoin will never exceed more than 21 million. He affirmed it.

In the present time, Bitcoin has been crowned to be the fastest Crypto Currency/asset to scale to a market cap of $1 trillion, as suggested by a recently published paper on the Crypto Tech market in India.

According to the statistics, there are around 15 million Indians who have invested in Crypto Currencies worth Rs 1,500 crore and around 350 Start-Ups that operate in the Blockchain plus a Crypto arena.

However, Crypto Currency is under no government regulation and remains disquiet.

Investors Bank on It

The voices of progress in the time of digitisation, be that as it may, oppose the traditionalist rationale of ‘wellbeing’ in monetary instruments and desire the public authority to permit individuals to take advantage of their cash to best use as they consider fit.

Crypto financial backers vouch for its basic Block chain application, which makes all exchanges evident and verifiable.

It is to a great extent in light of the Blockchain innovation, upheld by Know Your Customer (KYC) norms, that Crypto Currency has positioned itself universally as an alternative monetary framework that doesn’t need a centralized power and assists user’s own money and make secure payments secretly.

“Let the government tax Crypto Currency like commodities or assets, but allow trade,” said Dr Akash Rajpal, who vouches for investment in Crypto Currency. “I look at it as a hedge and with a high-risk reward angle. I put about 5-10 per cent of my investments in Crypto and only in underlying fundamental coins,” says Rajpal.

“As an ever-increasing number of youthful Indian financial backers are eager to explore new investment options, they are embracing Crypto Currencies like Bitcoin, Ethereum and Polygon to make speculations that guarantee them practical returns,” the report states.

One of the vital forecasts of the Nasscom report is that the CryptoTech business will reach $241 million by 2030 in India, and $2.3 billion by 2026 all around the world.

As per the report, more than 60% of states in India are arising as Crypto tech adopters and, with more than 15 million retail financial backers, the business is progressively drawing in new companies to take on Crypto tech.

“Crypto has immense potential to contribute to our $5 trillion economy vision, and in the coming years, we’ll see Crypto overcome the financial barriers for rural India, create access to jobs,” he added.

Some Crypto Stats:

  • Over 12,000 digital currencies exist today.
  • Total Crypto market cap: $1.96 trillion.

Steps to take before Investing in Crypto:

  • Do thorough due diligence.
  • Read a project’s whitepaper and its use cases, roadmap and progress.
  • Check the team’s background, their social media activity.
  • Check if it’s listed on legitimate exchanges.
  • Invest based on risk appetite.

Bitcoin as an Investment Option?

  • Fixed supply of 21 million, i.e., only 21 million Bitcoins will ever be created.
  • Digital asset which is not limited to any country, or entity, but available to anyone around the globe.
  • Slowly emerging as an alternative asset class which offers a high-risk, high-reward investment option.
  • Important to understand the high-risk high-reward aspect and invest based on risk appetite.

Source : New Indian Express

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