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Advantages & Disadvantages of Cryptocurrency in 2024 – Forbes Advisor INDIA

Published

8 months ago

28 May, 2024

Advantages & Disadvantages of Cryptocurrency in 2024 – Forbes Advisor INDIA

A cryptocurrency is a type of virtual or digital currency. They are secured by cryptographic systems and can be used to make safe online transactions without any mediators.

The word “crypto” refers to cryptographic techniques and several encryption algorithms that help secure these records, such as hashing functions, elliptical curve encryption and public-private key pairs. Investors must know cryptocurrencies are private digital currencies not endorsed by the Government of India.

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The Indian government is piloting its own digital currency and does not endorse the existing cryptocurrencies.

What is Cryptocurrency?

Cryptocurrencies are not regulated by any central government authorities, which makes them immune to any government interventions. Based on blockchain technology, many cryptocurrencies are decentralized networks.

A cryptocurrency is a digital currency based on a network that is scattered across a huge number of computers. The decentralized system of cryptocurrency makes it faster and cheaper to transfer money. It does not crumble at a single point of failure. The price volatility, alleged use in criminal activities that may not be easy to map and high energy consumption for mining of the coins are considered some of the key challenges to the acceptance of cryptocurrencies besides these coins not having any sovereign guarantee or approval.

Cryptocurrencies act as a medium for value storage or exchange. All this depends on a public ledger technology type that is called, “blockchain”. It records the data and keeps track of the transactions sent via the network. Blockchain is a virtual chain of blocks each of which contains a set of transactions and other information. The block becomes immutable, i.e. the data stored inside the block cannot be removed or replaced once it is added to the chain.

Nodes are a network of contributors by which cryptocurrencies are managed. On the network, the nodes perform a diversity of roles, from storing to validating transactional data. They overall manage the database and validation of the new transaction entries. The best part is that there is no single point of failure which means if one node breaks down it will have no impact on the blockchain ledger.

What Are The Advantages of Cryptocurrency?

Cryptocurrency has gained popularity among investors globally. With technological involvement and industrialization, digital currencies are obtaining a satisfactory position over others, for example, Bitcoin. By using Cryptocurrency it gets easy to transfer money without any involvement of banks and other financial institutions.

Let us see a few more advantages of it:

Inflation Protection

Due to inflation, the value of many currencies decline. Many folks see cryptocurrency as offering protection against inflation. Bitcoin has a hard cap on the whole number of coins that will ever be minted. For example, as the growth of the money supply overtakes the growth in the supply of Bitcoin, the price of Bitcoin shall increase. Many other cryptocurrencies use the same mechanism to cap supply as well as can act as a safeguard against inflation. In terms of quantity, there are only 21 million Bitcoins released as specified by the ASCII computer file. Therefore, because of an increase in demand, the value will rise which might keep up with the market and prevent inflation in the long run.

Transactional Speed

If you wish to transfer money to your loved ones for example, in the United States, there are a few ways to move assets or funds from one account to another very quickly. Cryptocurrency transactions are done in a matter of minutes and that is appealing to many. Within U.S. financial institutions, most of the transactions are settled in three to five days and wire transfers take at least 24 hours.

Cost Effective Transactions

Cryptocurrencies can help transfer funds globally. The transactional cost with the help of cryptocurrency can be minimal or zero. It is negligible as it eliminates the need for third parties like VISA to confirm transactions.

Decentralization

Cryptocurrencies are a portrayal of a brand-new decentralization model for money. They also help to combat the monopoly of a currency and free money from control. No government organizations can set the worthiness of the coin or flow, and that crypto enthusiasts think makes cryptocurrencies secure and safe.

Diversity

Investments in cryptocurrency can generate profits. The market has extended immensely over the past decade. There is a limited history of the price activity of the cryptocurrency markets, so far they appear unrelated to other markets like stocks or bonds. That makes cryptocurrencies a fine source of portfolio diversification. If you combine assets with less price correlation, you can have more stable returns. For example, if your stock collection goes down, your crypto asset might go high and vice versa. However, cryptocurrency is normally very volatile and in the end, might increase your portfolio’s volatility if your asset allocation is heavy on cryptocurrency.

Accessibility

Investors just need a computer or a smartphone with an internet connection to use cryptocurrency. There’s no identification verification, credit check, or background to open a cryptocurrency wallet. It is way faster and easier compared to old financial institutions. It also allows individuals to effortlessly make internet transactions or send funds to someone.

Safe And Secure

No one can access your funds unless they gain access to your crypto wallet’s private key. In case you forget or lose your key then you cannot recover your funds. Further, the transactions are secured by the blockchain system along with the scattered network of computers that verify the transactions. It’s more secure if investors keep crypto assets in their own wallets. The transactions are secured by the usage of public and private keys, proof of work or proof of stake and other various forms of incentive systems.

Transparent

With the decentralized nature of blockchains, one can view the money transfer transactions by simply using blockchain explorer on the platform to track live transfers. This open and transparent system is a relief among investors and is corruption-free.

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Legacy

Over 1 Million Investors Trust Mudrex for Their Crypto Investments

Security

Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets

Fees

Enjoy zero crypto deposit fees and industry’s best fee rates.

Multiple Award-Winning Broker

Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more

Best-In-Class for Offering of Investments

Trade 26,000+ assets with no minimum deposit

Customer Support

24/7 dedicated support & easy to sign up

Please invest carefully, your capital is at risk

Private

There is no third-party intervention due to which your account has a level of privacy. On the blockchain, investors have an identifier and your wallet address as the transactions are pseudonymous and nothing personal about you. There are even many coins that focus on privacy to enhance the cryptocurrency nature of privacy.

Currency Exchanges Are Done Effortlessly

Investors can purchase cryptocurrency using currencies like the U.S. dollar, Indian rupee or European euro. Various cryptocurrency exchanges and wallets help investors to trade in crypto and convert currencies with minimum transaction charges across different wallets.

What Are The Disadvantages of Cryptocurrency?

Investing in cryptocurrency might look appealing and profitable but investors should also consider a few downsides to it.

Cryptocurrency claims to be an anonymous form of transaction, but they are actually pseudonymous which means they leave a digital trail that the Federal Bureau of Investigation can decode. So, there’s a possibility of interference from federal or government authorities to track the financial transactions of normal people.

On a blockchain, there is a constant risk of a 51% attack which means It is a situation when a miner or group of them gets more than 50% of the network’s mining hash rate control. While in control, an ill-natured group can reverse the transaction that is completed, pause the transaction in process, double spend coins, prevent new transactions from getting validation and much more. Nevertheless, this attack is only a risk to recently hard-forked networks and new blockchains.

The majority of blockchains work on the proof-of-work consensus mechanism. Network participants are required to use powerful ASIC computers and the right hash to make a block added to the network. Due to this, there is excessive power consumption and countries are taking majors to lower its impact on the environment.

The lack of key policies related to transactions serves as a major drawback of cryptocurrencies. The no refund or cancellation policy can be considered the default stance for transactions wrongly made across crypto wallets and each crypto stock exchange or app has its own rules.

Are Cryptocurrencies Legal In India?

Cryptocurrencies as a payment medium are not regulated or issued by any central authority in India. There are no guidelines laid down for sorting disagreements while dealing with cryptocurrency. So, if you wish to trade in crypto, do it at your own risk.

Nirmala Sitharaman, the Finance Minister of India, initiated a tax on digital assets that has increased the discussion on the cryptocurrency legality in the country.

Given the stance of the Reserve Bank Of India (RBI) Governor and other key ministers from time to time, it can be safe to state cryptocurrency is not banned in India. Till 2022, cryptocurrency was unregulated in the country. This changed after the government set forth a 30% and 1% tax on profits from cryptocurrencies and tax deducted at source respectively in the Union Budget of 2022. This event marked the Indian government’s official regulation of cryptocurrency in the country.

While many supported the decision as it marks the very start of the road to getting cryptocurrency recognition, the Government of India still has to issue an official note for cryptocurrencies to be considered legal in India.

Tax on Cryptocurrency in India

Tax on cryptocurrency is one of the most confusing investment aspects in India. In the beginning years, there was no income tax or goods and services tax (GST) on cryptocurrencies in India but in the recent Union Budget 2022, a tax regime for digital or virtual assets that include cryptocurrency has been introduced.

Crypto investors are required to keep a well-calculated record of losses and gains as a part of their income.
On the earnings from the transfer of virtual or digital assets, a 30% tax will be charged. The tax includes cryptocurrencies, NFTs, etc.
Cost of acquisition along with no deduction will be permitted while reporting gains from the transfer of virtual or digital assets.
A tax of 1% on tax deducted at source (TDS) on the buyer’s payment if it crosses the threshold limit.
If someone receives cryptocurrency as a gift or it is transferred then it is subjected to tax at the beneficiary’s end.
If investors face any loss from the virtual or digital asset investment, it cannot be recovered against other income.

Featured Partners

Legacy

Over 1 Million Investors Trust Mudrex for Their Crypto Investments

Security

Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets

Fees

Enjoy zero crypto deposit fees and industry’s best fee rates.

Multiple Award-Winning Broker

Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more

Best-In-Class for Offering of Investments

Trade 26,000+ assets with no minimum deposit

Customer Support

24/7 dedicated support & easy to sign up

Please invest carefully, your capital is at risk

Bottom Line

Cryptocurrencies can be bought via crypto exchanges in India. All electronic commerce websites do not allow the trading of cryptocurrencies. Believe it or not, popular cryptos like Bitcoin and Ethereum are barely used for retail transactions in India. They are used for cross-border transfers mostly outside of India.

Crypto investors should have proper knowledge and understanding of the risks that are involved before investing in cryptocurrencies. Considering all the advantages mentioned earlier it is hard to debate that investing in crypto has no value. The benefits are of great value for investors who treasure safe and fast transactions.

Frequently Asked Questions (FAQs)

What is blockchain?

A blockchain is a scattered digital format or ledger that stores all kinds of data electronically. A blockchain can store information about cryptocurrency transactions, decentralized smart contracts or ownership of non-fungible tokens.

What are the popular exchanges to purchase cryptocurrencies in India?

The popular crypto exchanges are WazirX, UnoCoin, ZebPay, CoinDCX and CoinSwitch Kuber.

What are the popular cryptocurrencies as per market capitalization?

The popular cryptocurrencies as per market capitalization are Bitcoin with $322.3 billion, Ethereum with $149.0 billion and Tether (USDT) with $66.2 billion.

Cryptocurrency is a safe investment or not?

Like any other investment, cryptocurrency is not a risk-free investment. The market risks, cybersecurity risks and regulatory risks, as cryptocurrency is not issued or regulated by any central government authority in India.

How to buy cryptocurrency in India?

Investors can purchase cryptocurrency through a crypto exchange. The popular exchanges are WazirX, ZebPay, CoinDCX, or through cryptocurrency brokers such as IC Markets and Eightcap.

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News

US Cryptocurrency Rules Delayed by ‘Never-Ending’ Lawsuits

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Ripple Pledges $25 Million Per Year to Crypto Super PAC

Ripple CEO says cryptocurrency industry still seeking regulatory clarity from US

Speaking to Bloomberg News on Wednesday (July 17), Author: Brad Garlinghouse he said America is behind behind other countries which have already adopted cryptocurrency regulations.

“What we’re seeing, where it’s the UK, Japan, Singapore… even the European Union, more than two dozen countries have come together to provide a framework for cryptocurrency regulation,” Garlinghouse said.

“It’s frustrating that we as a country can’t get that regulatory framework in place. And instead, we have this never-ending lawsuit coming from the SEC that doesn’t really address the problem.”

Ripple has been the target of some of these legal disputes. Securities and Exchange Commission (SEC) sued the company in 2020, accusing it of conducting a $1.3 billion operation offering of unregistered securities tied to its XRP token.

However, last year a judge ruled that only Ripple’s institutional sales of XRP, not retail sales, violated the law, a decision widely seen as a victory for the cryptocurrency industry.

As PYMNTS noted at the time, that ruling has “far-reaching repercussions impact across the digital asset ecosystem, which has long maintained that its tokens do not represent securities contracts.”

However, Garlinghouse told Bloomberg on Wednesday that the company cannot wage multimillion-dollar legal battles over each token.

He spoke to the news agency from the Republican National Convention in Milwaukee, where the party is backing the candidacies of former President Donald Trump and Ohio Sen. J.D. Vance, both of whom are considered pro-cryptocurrency.

But Garlinghouse argued that cryptocurrencies “should not be a partisan issue,” and noted that he had recently attended a conference in Washington that included Democrats, including White House officials.

“I think they were there, listening to the industry… it was refreshing to start having that conversation,” she said.

President Joe Biden earlier this year he vetoed a measure which would have ended the SEC’s special rules for crypto-asset custodians. This legislation was supported by both the digital asset industry and the banking industry.

Ripple early this year donated $25 million to the cryptocurrency industry’s super PAC Fair Smoothiewith Garlinghouse stating at the time that such donations would continue every year, as long as the industry had its detractors.

Second Open SecretsWhich monitor spending For campaigns, the PAC has spent $13.4 million this year, much of it to help defeat Rep. Katie Porter’s (D-Calif.) U.S. Senate campaign.

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The Future of Cybersecurity in the Cryptocurrency Industry

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

The Future of Cybersecurity in the Cryptocurrency Industry

The cryptocurrency space has had a tumultuous journey, with its fair share of ups and downs. As we look to the future, one area that remains a constant focus is cybersecurity. The digital nature of cryptocurrencies makes them inherently vulnerable to cyber threats, and as the industry evolves, so does the landscape of potential risks.

In 2022, the cryptocurrency market faced significant challenges, with over $2 trillion in market value lost. This event served as a wake-up call for the industry, highlighting the need for robust cybersecurity measures. The future of cryptocurrency security is expected to see a shift towards more regulated and established institutions taking the reins of crypto technology and blockchain infrastructure.

The decentralized nature of cryptocurrencies offers numerous benefits, such as transparency and financial inclusion. However, it also introduces unique security challenges. The risk landscape is filled with threats such as hacking, phishing, ransomware attacks, malware, and social engineering. These threats not only lead to financial losses, but also damage the reputation and trust within the cryptocurrency ecosystem.

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The decentralized nature of cryptocurrencies offers many benefits, but it also presents unique security challenges. Cyber risks such as hacking, phishing, and ransomware pose threats to the integrity of digital assets. The infrastructure that supports cryptocurrencies is not immune to vulnerabilities, including smart contract flaws and exchange hacks.

To address these vulnerabilities, the infrastructure that supports cryptocurrencies must be strengthened. Smart contract vulnerabilities, exchange hacks, wallet breaches, and flaws in the underlying blockchain technology are significant concerns that must be addressed to ensure the security and integrity of digital assets.

As cybercriminal tactics and techniques become more sophisticated, the cryptocurrency industry must stay ahead of the curve. The future will likely see more targeted attacks, exploiting weaknesses in infrastructure, networks, and human factors. This requires a proactive and multifaceted approach to cybersecurity.

To mitigate these risks, several measures must be adopted:

Strengthening security measures: Developers, exchanges, and wallet providers must improve security protocols, use strong encryption, implement multi-factor authentication, and conduct regular security audits.

Education and awareness: Users should be educated on best practices for protecting their digital assets, including using strong passwords, recognizing phishing attempts, and using hardware wallets for secure storage.

Looking ahead, the cryptocurrency industry is expected to see an increased focus on robust security measures. Blockchain projects and exchanges are likely to invest in advanced encryption techniques and decentralized storage solutions to protect user assets. The future impact of cyber risk on cryptocurrencies will depend on the collective efforts of stakeholders to address vulnerabilities and strengthen security measures.

Collective efforts by stakeholders in the cryptocurrency space are crucial to address vulnerabilities and strengthen security measures. While challenges persist, advances in cybersecurity technologies and practices offer hope for a more secure and resilient cryptocurrency ecosystem.

The future of cybersecurity in the cryptocurrency industry depends on finding a balance between innovation and regulation. It requires a collaborative effort from all parties involved, from developers to end users, to create a secure environment that fosters trust and growth in the industry. As we move forward, it is critical that lessons learned from past events guide the development of stronger security measures, ensuring the longevity and stability of cryptocurrencies as a vital part of the modern economic toolkit.

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Bullish XRP and RLBK price predictions rise, outpacing the broader cryptocurrency market, prompting Shiba Inu holders to switch!

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bullish XRP and RLBK price predictions rise, outpacing the broader cryptocurrency market, prompting Shiba Inu holders to switch!

Bitcoin’s one-week surge from $60,000 has pushed other cryptocurrencies into an uptrend. However, for many altcoins, this trend has been temporary. Altcoins such as XRP and Shiba Inu (SHIB) have experienced price drops. However, Rollblock, a new altcoin on the Ethereum blockchain, has thrived during this period, attracting thousands of investors looking for long-term growth.

XRP’s Nearly 30% Growth Over Last Week Drops as Selling Pressure Increases

XRP is seeing further price decline as Ripple investors withdraw their profits from the token. The surge in XRP’s price to $0.64 in the past week has provided investors with a perfect opportunity to increase their returns in the short term. With the ongoing sell-off in XRP, XRP has jumped over 8% in the past day and is now trading at $0.59. However, analysts tracking XRP indicators predict that XRP could still extend its gains by over 30% in the coming weeks.

Shiba Inu (SHIB) marks its third consecutive day of losses

Shiba Inu (SHIB) is in a period of adjustment after a week of strong gains. In the last 24 hours, SHIB has seen a jump of over 7%, reflecting a natural market fluctuation. Analysts are observing a death cross on the Shiba Inu chart, which historically signals the potential for future opportunities as the market stabilizes. As investors explore new possibilities, some are diversifying into promising altcoins like Rollblock (RBLK) to strategically rebalance their portfolios and capitalize on the emerging trend.

Rollblock (RBLK) Up Another 7% as New Investors Join Pre-Sale

Rollblock (RBLK) has taken the cryptocurrency market by storm, having attracted investors from more popular altcoins like Shiba Inu (SHIB) and XRP. Rollblock’s growth is attributed to its utility in the $450 billion global gaming industry.

Rollblock aims to use blockchain technology to bridge the gap between centralized and decentralized gambling. With blockchain technology, Rollblock secures every transaction in its online casino, providing transparency and convenience to millions of players who are uncomfortable placing bets on other iGaming platforms.

This innovative use of blockchain technology in the industry has grown Rollblock to over 4,000 new users in less than two months. With plans to add sports betting, this number is expected to grow exponentially in Q3.

Rollblock uses a revenue sharing model that splits up to 30% of its casino’s weekly profits with token holders. This happens after Rollblock buys back $RBLK from the open market and uses half of it for rewards. The other half is burned to increase the price of $RBLK.

Rollblock price has seen four increases in the past month with $RBLK tokens now selling for $0.017. Analysts predict that at the current growth rate, Rollblock could increase by over 800% before the presale ends. For investors looking for a long-term token with growth potential, phase four is the best time to buy Rollblock before its price skyrockets!

Discover the exciting Rollblock (RBLK) pre-sale opportunities now!

Website:https://Rollblockpresale.io/

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Texas Crypto Miners Turn to AI as Crypto Declines

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Texas Crypto Miners Turn to AI as Crypto Declines

As cryptocurrency mining becomes less profitable, Texas cryptocurrency mining companies are switching to supporting artificial intelligence companies.

Bitcoin miners, with their sprawling data centers and access to significant energy resources, are ideally suited for computationally intensive AI operations, and as cryptocurrency mining becomes less profitable, companies see this shift as a logical answer to their problems.

On Thursday, Houston-based Lancium and Denver-based Crusoe Energy Systems announced a multibillion-dollar deal to build a 200-megawatt data center near the West Texas city of Abilene to support advanced artificial intelligence applications such as medical research and aircraft design, CNBC reported. The plant represents the first phase of a larger 1.2 gigawatt project.

Lancium and Crusoe’s move into AI mirrors a broader trend among bitcoin miners. The combined market capitalization of the top U.S.-listed bitcoin miners hit a record $22.8 billion in June. Companies like Bit Digital and Hut 8 are diversifying into AI, with Bit Digital securing a $92 million annual revenue deal to supply Nvidia GPUs and Hut 8 raising $150 million to expand its AI data center.

But the growing popularity of these operations also presents challenges, particularly for the Texas power grid. Last month, the Electric Reliability Council of Texas announced that the state is expected to nearly double its energy production by 2030 to meet the high energy demands of data centers and cryptocurrency operations.

Lieutenant Governor Dan Patrick expressed concern about the projections.

“Cryptocurrency miners and data centers will account for more than 50% of the additional growth. We need to take a close look at these two sectors,” He wrote on Twitter/X. “They produce very few jobs compared to the incredible demands they place on our network. Cryptocurrency miners could actually make more money selling electricity to the network than they do from their cryptocurrency mining operations.”

Analysts predict significant growth in data center power capacity, which is expected to account for up to 9% of U.S. electricity consumption by 2030.

The operations also pose challenges for nearby cities. Earlier this month, TIME reported that a crypto-mining facility was seriously compromising the health of residents in the city of Granbury. TIME reported more than 40 people with serious health problems, including cardiovascular disease, high blood pressure and hearing loss. At least 10 of the residents needed to go to the emergency room or an urgent care facility.

The disturbances were caused by the extreme noise generated by the crypto-mining facility’s fans, which are used to keep the machines cool. While the proposed data center in Abilene would use liquid cooling systems, it’s still unclear whether the facility’s operations would pose a health risk to local residents.

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