A crypto currency or crypto is a collection of binary data which is designed to work as a medium of exchange.Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.Crypto currencies are generally fiat currency, as they are not backed by or convertible into a commodity.(Tag-Wikipedia)
Thus, Crypto currency is a digitized asset spread through multiple computers in a shared network.Each Crypto currency works distributed Ledger technology typically a Block Chain.
Some of the well known Crypto Currencies are
1.Bit Coin
2.Ethereum
3.Tether
4.
Cardano
5.Ripple
6.USD Coins
7.Polkadot
8.
Dogecoin and many more.
Crypto Currencies are generally Fiat Currency.They are open to be issues and demand and supply determine currency value.Thus the values of crypto currencies change on a daily basis.
The following table shows the value of one crypto currency in Indian Rupees and their change in transaction in 24 hrs, market cap and volume of transaction in 24 hrs.
The data are as of 3rd December 2021.
This is depicted blow to have an idea of value of these currencies.
Crypto-currency Price, Market cap, Volume transacted in India as on 3rd Dec 2021
|Coin Name (Code)||Price||Change (24h)||Market Cap||Volume (24h)|
|Bitcoin (BTC)||Rs 45,13,922||-18,617||79.8T||2.5T|
|Ethereum (ETH)||Rs 3,64,297||+3,275||39.9T||1.7T|
|Tether (USDT)||Rs 79.81||-0.21||5.6T||5.9T|
|Cardano (ADA)||Rs 133.78||+10.44||4.3T||249.7B|
|Ripple (XRP)||Rs 77.86||+0.27||3.4T||181.2B|
|USD Coin (USDC)||Rs 79.75||-0.24||2.9T||406.6B|
|Polkadot (DOT)||Rs 2,839.28||-10.37||2.7T||85.5B|
|Dogecoin (DOGE)||Rs 16.69||+0.25||2.1T||140.0B|
-0.41%
+0.91%
-0.26%
+8.47%
+0.35%
-0.30%
-0.36%
+1.51%
One can see the phenomenal growth of these currencies from the above table.
Crypto has been gaining momentum in India, ever since the Supreme Court reversed banking ban on Crypto in 2020.
Investing in crypto Currency is easy, which is another reason why it had picked up.First you need to sign up for a platform and do the KYC verification.Once verification done, you transfer money from your bank account in to your wallet and buy crypto currencies.
The Crypto Currency and Regulation of official digital Currency Bill 2021, will be introduced in ongoing winter session of Parliament.This bill is different from the earlier one- “ Banning of Crypto currency and Regulation of official Digital Currency Bill 2019” The older Bill sought to impose complete ban on all crypto-related activities including mining, buying, holding, selling and dealing.Currently there are no regulations or any ban on use of crypto currencies in India.
The crypto currency and Regulation of official digital Currency Bill 2021, seeks to prohibit all private crypto currencies in India.
However it allows for certain exceptions to promote the underlying technology of crypto currency and its uses.
India has the highest number of crypto owners in the world (10.3 Cr)
The Crypto investment by Indians have touched an all time high of $ 10 billion, in Nov 2021, up from $ 923 Million in April (Source Times of India – Dated 2nd Nov 2021)
There are few possibilities on taxation of Crypto Currencies are discussed below
Conclusion
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