The Cryptocurrency is a part of virtual currency which is decentralized, transparent and unchangeable. This is an electronic cash system invented by Satoshi Nakamoto, the unknown inventor of Bitcoin (2008), named it as peer-to-peer electronic cash system. It means there is no need for any kind of centralized server because every system can act as a server to other systems. The main feature of Cryptocurrency it’s limited entries in the database. No one can change the entries without fulfilling specific conditions.
There are various types of cryptocurrency such as Bitcoin, Ethereum, Litecoin, Monero, Dash, NEM and Waves. But Bitcoin is the first and famous type of cryptocurrency in the market.
Secret codes are involved in the execution of transaction which makes it safe to use. For instance, if Mr A gives X amount of Bitcoin to Mr B, then A has to sign the transaction by his private key. The P2P technology makes the signed transaction broadcast from every system in the peer to others.
As cryptocurrencies are based on transaction confirmation, the time till unconfirmed it will be pending and can be forged. But once confirmed no can reverse or do any kind of forge activity.
Block-chain is the main part of the system as it’s a decentralized ledger of all transaction across the peer to peer network. With the help of Block-chain, members can do transactions without the help of any central body which makes the process fast and easy.
The general agreement keeps the process more secure with the help of strong cryptography because it works by algorithm, not by any trust or people. Cryptocurrency is fast-growing and wild which makes its market grow like crazy.
Although many types of cryptocurrencies are there in the market, Bitcoin is famous and everybody at least heard about it. Many countries easily accepted the form of transaction like USA, Canada, Australia and the European Union.
The United States and Canada take a positive stand for bitcoin. Several Government agencies work to prevent and reduce it’s uses for illegal transactions and makes sure that Bitcoins are not used for money-laundering. The digital currency is widely used in the derivative market in the USA whereas Canada considers it as a Business income.
According to Investopedia, Bitcoin is viewed as a commodity by the Canada Revenue Agency. When talking about Australia, it considers Bitcoin like any other currency and allows to buy, trade or mine it. European Unions have accepted the development of Cryptocurrency but it has not issued any official regulation or acceptance.
Worldwide usage of virtual currency is not that much because it is banned in many countries like China, Russia and Vietnam do not allow the mode of transaction and consider it as illegal. China has completely banned the usage of Cryptocurrency and the government has cracked down on miners. Russia and Vietnam also do not take cryptocurrency as a mode of investment. Bolivia, Columbia has banned the use of Bitcoin and other cryptocurrencies. Columbia does not allow Bitcoin use or investment
When we will talk about Our country India, cryptocurrencies are not legal in India. Exchanges are legal, the government has made its operation very difficult.
It’s almost 12 years old cryptocurrency is, but still many countries are unable to restrict, regulate or ban its usage. The decentralized, permissionless, irreversible, artificial, fast and global features make its usage broad and give challenges to the Government to handle in case of criminal transactions. Many countries are still trying to find ways to regulate the cryptocurrency. But we can say that Cryptocurrency remains in a legal grey area for most of the world.
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