Descriptive For Syndicate Bank PGDBF

Cryptocurrency Advantages & Disadvantages (Future Scope)

Cryptocurrency is a digital currency that can be used as an alternative to physical currency. However it is not under the regulation of the governments or issued by the central banks. It is highly unstable as compared to regular physical currencies but nowadays many people are using it for different purposes like shopping online or money  transactions. Bitcoin is the first cryptocurrency. Cryptocurrency uses encrypted cryptographic technology for security and runs on blockchain technology. It is difficult to counterfeit (copy) because of this security feature. It is created and stored electronically  which we can save only on our computers or websites.Today there are various functioning websites which allow you to convert cryptocurrency to real money and transfer it directly to your bank account or vice versa. Some cryptocurrencies are Bitcoin (2009), Litecoin (2011), Ripple  (2013), Laxmi Coin (India 2014) etc.Jio coin will be launched soon in India. Japan gave legal tender status to bitcoin. Perto is another  cryptocurrency proposed to be adopted by Venezuela. But our finance minister Arun Jaitley said India does not recognize virtual currency as legal tender. Dinesh Sharma committee is setup to look into issues relating to cryptocurrencies. Cryptocurrency is readily available to the general public. Almost anyone can make use of it. No need to share your identity or the details of the  transactions made between you and the beneficiary. No information is required to share with the government and the bank regarding the deal. It is truly decentralized. All your transactions are safe and It is next to impossible for any person other than the owner of the wallet to make any  payment from the wallet,unless they are hacked. You are the master of  your money. You can keep it in your wallet and use it as per your  wishes. There is no third party involved like a bank on whom you need to trust. When you talk about transactions using cryptocurrencies then there are no limits. You may be in a different part of the world and the   receiver might be some other part, you can still transfer the amount. The inter-country transaction is extremely easy with cryptocurrency because its function is not under the control of any central bank. Banks and  Payment Processing companies charge fees to conduct payment and  fund transfer but with crypto currencies, these fees can be eliminated  and are very low.

Payments done are irreversible & There’s no center point in payment  processing so if you transfer someone by mistake and want to get a Refund for services. There’s no option to dispute that  person only way to get your money back is to ask the person to refund payment and if he  refused then forget about it. They are Not Widely Accepted.There are  not many companies or websites who accept it, if you have  cryptocurrencies and wanted to purchase something then you have to  search first that which service provider accept it even if you don’t like  their services and have only cryptocurrencies then you have to use it  even if you don’t like that provider also in physical stores you have to use real money instead of digital money. If you have stored your digital currencies in your system or mobile and if you lose it then there’s no way to get your money back you can’t complain to police or even some other person. People are not aware of how to use cryptocurrency and  hence open themselves to hacker. The technology is somewhat complex  and therefore one needs to be mindful of it before investing. Since cryptocurrencies are so new, they are also very volatile. This is one of the main reasons mass adoption is taking longer than it should.

Cryptocurrency is not widely accepted which is a major drawback but slowly and steadily it is making its position. Both developed as well as developing countries are legalizing and regulating the use of  cryptocurrency.