In the historic era, the barter system was followed. According to this system humans used to exchange goods for goods, and then humans invented the system of money in the form of paper and coins whereby goods and services were exchanged for money. Now, Digital Money is prevalent in the modern world. Digital Money includes Debit cards, credit cards, electronic wallet money, and so on. Cryptography is a kind of digital money.
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What is Cryptocurrency?
Cryptocurrency basically consists of two words that are Cryptography and Currency. Here, Crypto means “concealed or hidden”, Graphy means “written” and Currency means “system of money used in a particular country”. Therefore.
Cryptocurrency is the online money, known as digital currency or money. It can easily be transferred through online mode. Thus, it is considered as Digital asset.
The major difference between Cryptocurrency and traditional currency is that the Cryptocurrency is a digital currency and is not available in physical form. Therefore, it can be only be transferred through digital mode.
People can trade as in buy or sell in Cryptocurrency like shares. It has become one of the popular ways of Investment in today’s world and if we predict the future of cryptocurrency then we can say that it will be the costliest currency across the globe.. According to surveys, Bitcoin is the most popular Cryptocurrency across the globe.
As we know, Cryptocurrency is a decentralized electronic currency and therefore we can not involve any servers for processing cryptocurrency transactions. Moreover, it is not backed by the government as there is no law or central agency as of now in India to monitor crypto currency.
How does Cryptocurrency work?
Before learning what is the future of cryptocurrency? one must know how does cryptocurrency work. Cryptocurrency uses the Blockchain Technology to work and Blockchain extensively uses the cryptographic algorithms to protect the data integrity and to secure all the transactions dealing in cryptocurrencies.
Blockchain Technology
Blockchain is a kind of database that stores all the data in e-form. It is a decentralized technology in the form of a ledger whereby all the transactions are recorded from all the computers. With the help of Blockchain Technology, one can easily enter into transactions without any sanction from the regulators.
Cryptography Mechanism
Cryptography is one of the methods to protect all the communications and data using the algorithms. It basically creates & maintains the relation between the sender and receiver of data with a pair of keys.
Cryptography is a process which converts the plain text into unintelligible text or characters so that any person reading the text cannot understand its meaning and then the receiver who has unique key can convert that text into intelligible sense. It secures the data as it can only be read and understand by the person for whom it is stored or sent. Thus it makes the data authentic, secured and transparent and protects the date from being theft and altered.
Importance of Hash Function in Cryptocurrency
Cryptocurrency uses Hash Function. The hash function works as one way encryption as it does not use any cryptography keys. Its main function is to keep the data unchanged when the data is converted from unintelligible text to intelligible text. Hence, it is popularly known as Backbone of the Cryptocurrency.
Hash Function receives the information (that is input information) in unintelligible form of any length. This input information is known as “strings”. Thereafter, it converts the input information into output information in a fixed length that is in intelligible form and output information is known as “Digest”. Cryptocurrency uses the hash function which makes it very secured system as no one will be able to understand the input information and the person who has the decryption code can understand information.
What are the advantages of Cryptocurrency?
No Government Interference
As we know Cryptocurrencies are mostly used for making online transactions. Additionally, it is decentralized. Therefore, it does not need any human involvement or any involvement of government body while participating in such transactions or for undertaking transactions involving cryptocurrency.
Easy to use
Cryptocurrencies basically work similarly to Shares or equities as one can trade in cryptocurrencies just like shares. Therefore, it is easy to invest and use Cryptocurrencies in the global market.
Transparent Mechanism
Cryptocurrency works on Blockchain mechanism and as of now, cryptocurrencies and blockchain both are considered as unhackable. Moreover, every person can easily get data related to cryptocurrencies which makes Cryptocurrency a transparent mechanism.
Speedy Transactions
Cryptocurrency has been identified as speedy as light in terms of transactions. One can do hassle-free multiple transactions at once without any error. Thus, it is highly adopted by businesses.
More Secure Transactions
In cryptocurrencies, data is stored on a shared ledger with the blockchain which not only makes the data accurate and updated but also it secures all the transactions by using hash function privacy.
List of top 10 Cryptocurrencies in the world by Market Capitalisation
Cryptocurrencies |
Market Capitalization |
| Bitcoin (BTC) |
$128bn |
| Ethereum (ETH) |
$19.4bn |
| XRP (XRP) |
$8.22bn |
| Tether (USDT) |
$6.4bn |
| Bitcoin Cash (BCH) |
$4.1bn |
| Bitcoin SV (BSV) |
$3.4bn |
| Litecoin (LTC) |
$2.6bn |
| EOS (EOS) |
$2.4bn |
| Binance Coin (BNB) |
$2.4bn |
| Tezos (XTZ) |
$1.5bn |
Source:List of Top 10 Cryptocurrencies in the world by Market Capitalisation
Therefore, if you are searching for which cryptocurrency is best to invest now or which cryptocurrency is best to invest in 2021 then the answer is absolutely bitcoin. If you have enough money to invest in bitcoin then you should invest in it. In addition to this, we can conclude on future of bitcoin that it’s price will increase more rapidly in future.
Legality of Cryptocurrency in India
Indian laws are absolutely silent on regulating Cryptocurrencies in India as of now. Thus, we can say that Cryptocurrency is completely legal in India until and unless it is declared illegal by law. Conclusively, Indians can freely trade in Cryptocurrency. But if we make cryptocurrency predictions or long term cryptocurrency predictions in India, then it is being said that India can launch its own cryptocurrency
India’s stand on Virtual Currency
if you are still pondering upon which cryptocurrency is best to invest now then first read about India’s stand on virtual currency before concluding anything. RBI issued the circular on 4th March 2020 imposing the ban on virtual currency for restricting the Banks and all financial institutions from giving services to crypto-traders and to deal & settle for Cryptocurrencies. It was declared as an arbitrary move by the Supreme Court and thus SC quashed this arbitrary circular by declaring it as unconstitutional.
The government of India is expected to introduce a Law regulating Cryptocurrencies in India. According to Indian Media Reports, there is a possibility that government can take harsh and stricter actions and approach against the Cryptocurrency market. Moreover, we can expect that the Indian Government can completely ban and criminalize not only the Mining, Trading and Transferring of the crypto-assets but also the Possession of Crypto-assets.
If India passes the law for banning private virtual currency then India would be the first nation to ban & criminalize Cryptocurrency.
Conclusion
At present, not every person knows about cryptocurrencies and even when people know about it then also not everyone trusts this currency. However, if we consider the growing phase of digital platforms and also the digital currency, we can conclude that Cryptocurrency is the future of currency. we hope all of your doubts related to which cryptocurrency is best to invest now are solved.
We can see the continuous growth in the usage of Cryptocurrency in India as well as in the world. Still a debate going on as to the legality and usage of cryptocurrencies. Half of the people are supporting Cryptocurrency whereas many people are resisting its usage. As per reports, we can say that almost 25% of the world currency would be occupied by Cryptocurrency in near future.
Knowledge Source:
India Set to Propose Cryptocurrency Ban
Government to Introduce Bill Regarding Cryptocurrency in Budget Session