Technology is the one of the powerful tools that is ruling the world right now. The world is witnessing a lot of technologies right now. Few technologies are useful and are accepted by everyone and there are a few technologies that have faced initial rejection but are termed as landmark developments in the history of technological innovations. These technologies have changed the lives of the people in the world.
Yes we are talking about cryptocurrency or Bitcoins which have been designed to change the way we conduct our businesses.
Transactional global currency
Currently, Bitcoin which is a cryptocurrency has increasingly gained lot fame as a transactional global currency. Since the currency is decentralized, it is very different from the conventional currencies that people are using since time immemorial. Bitcoin uses cryptographic technologies to conduct transaction between a sender and recipient. By using this technology one doesn’t have to trust other networks such as banks or a clearing house.
Each transaction is documented on the public ledger known as blockchain. This blockchain is shared between all the users and updated on real time basis.
Create their digital wallets
Every time a set of new transaction is consolidated into a block, the technology verifies all those before that. If there are six verifications, it means a transaction is 99.99% likely to be authentic.
Just like gold, Bitcoins are mined and the miners have to solve complex mathematical problems to ensure secure verifications and thus build the blockchain. Accordingly, to use the Bitcoin currency users have to create their digital wallets which can be accessed on their computers and mobile devices. Each wallet contains a unique address which lets the user buy or sell the Bitcoin currency.
Moreover, every user has a private address which should not be shared with anyone else, that helps the user to send Bitcoins. Since Bitcoins are not limited by government laws or borders, it is easier for the user to send and receive any amount of money instantaneously anywhere and anytime.
Convenient tool for money laundering
Bitcoins have become a convenient tool for money laundering, tax evasions and scams. Since, this cryptocurrency documents transactions only between digital addresses and not individuals which make it very popular amongst the fraudsters in the market.
In 2011, the Federal Bureau of Investigation (FBI) closed down the dark web marketplace known as Silk Road. Narcotics, stolen credit cards, hacked passwords were sold secretly on the Silk Road using the Bitcoins.
In India, criminal cases of fraud related to Bitcoin have predictably seen a marked increase and are on a rise as cryptocurrency gains popularity in the country. The main reason for the rise in fraudulent practices is a lack of regulation and acknowledgement of the cryptocurrency in the country. The Reserve Bank of India (RBI) had issued a public notice that the cryptocurrencies are not authorized and are not subjected to consumer protection laws.
Misinformation and dearth of clarity
There is still a great deal of misinformation and dearth of clarity regarding the Bitcoin trading and hence fraudsters have taken full advantage by coming out with Ponzi schemes which assures ‘guaranteed high returns’. These fraudulent companies promise the users to double the initial investment within a short span of time. The financial experts’ advices to not get involved with such schemes as Bitcoins are highly unpredictable so no one can offer guaranteed high returns.
Presently, the desire for bitcoins amongst the Indians is increasing every day in a country with one of the world’s youngest populations. Bitcoins have become what gold was to the previous generation and now we just have to wait and see how the government deals with this technology in the coming years.
