Cryptocurrencies have been around for quite some time now. They are a form of currency in virtual or digital form and make use of cryptography to secure transactions. They are not regulated by the government (no central issuing authority). However, it does not mean that it is not secure. In fact, it is one of the secure forms of transactions as it uses a decentralized system to track down transactions and issue new units. Cryptocurrencies are widely used around the world, including India. India is the second-highest cryptocurrency user in the world in 2021.
What is cryptocurrency?
Cryptocurrency is a payment system that exist in digital form. Transaction verification does not involve banks or other government-regulated financial institutions. It is more of a peer-to-peer system enabling cryptocurrency to send and receive anytime and anywhere. Cryptocurrencies are mined and stored in digital wallets. If you are going to transfer a cryptocurrency fund, the transaction will be recorded in a public ledger.
You might be wondering why it is named cryptocurrency; well, it is called a cryptocurrency because it relies on encryption to verify the transaction. In other words, for the transaction to push through, it uses advanced coding, especially in terms of storing and transmitting cryptocurrency data from wallets to public ledgers. Encryptions are there to ensure that the transaction is safe and secure. There are various forms of cryptocurrency, with bitcoin as the first and most popular cryptocurrency. Countries that use cryptocurrency have specific rules and regulations. For instance, India will impose a tax of 30% of crypto gains.
Let us dig deeper into the future of cryptocurrencies in India.
India is one of the countries in which cryptocurrency is widely used and accepted. That is the reason why the government of India plans to impose a 39% tax on crypto gains. It would add significant growth to India’s economy, especially that cryptocurrency in the country can be traded and used to make payments for online transactions. It is used to pay for subscriptions such as web hosting subscriptions. It can also be used to fund your online gambling account. According to this website, many online casinos and sports betting sites accept cryptocurrency.
Should you wish to use cryptocurrency for payment purposes, you need to understand how it works. The explanation below will help you understand how cryptocurrency works.
Cryptocurrencies are distributed on a blockchain, a public ledger. It means that all cryptocurrency transactions are recorded and updated there. Every cryptocurrency unit undergoes mining, and it is made possible with the help of computer power to handle complex mathematical problems that generate coins. Should you not like the process of mining because you find it complicated or simply lazy to do so, you can purchase cryptocurrency from brokers or crypto app like Coinbase and store them in cryptographic wallets.
What types of cryptocurrencies are accepted in India?
There are many forms of cryptocurrencies, and although all of them are accepted in other countries, especially where cryptocurrency originated, you have to know that only some of them are accepted in India. Some of the popular forms of cryptocurrency you can use in India are bitcoin, Litecoin, and Ethereum. There are a few merchants that accept less popular types of crypto, such as ripple.
What can you purchase with cryptocurrencies?
The very first form of cryptocurrency, bitcoin, was primarily made to be used as a medium for daily transactions. With it, you can purchase anything such as purchasing goods in the local shop, dining in a restaurant, or shopping online. In fact, it can be used for making big purchases such as buying real estate properties. Although it has not fully materialized, there are things you can buy from it. These are the following:
- Making payments to technology and e-commerce sites – There are technology and e-commerce sites that accept cryptocurrency, specifically, bitcoin, such as in the case of purchasing a plan and subscription-like internet subscription, web hosting plans, and shopping for goods and items online.
- Purchasing luxury goods – Can you use cryptocurrency when buying luxury goods? But, of course, yes! Online luxury retails stores accept bitcoin payment for items like high-end watches, bags, and jewelry. Some car dealers accept cryptocurrency payments too.
- Purchasing insurance – Some insurance companies accept cryptocurrency, and a perfect example is AXA. Although it only accepts bitcoin at the moment.
- Payment to online casinos and sports betting sites – Yes, there are online gambling sites – both casinos and sports betting sites, accepting cryptocurrency deposits and withdrawals. In India, you will not have a hard time looking for such sites as there are plenty of them. However, you need to be wary when signing up for an account with these sites and ensure they have the best offer so you can get the most of your cryptocurrency.
The future of cryptocurrency in India is bright, although there is plenty of room for improvement. The Indian government has yet to develop a concrete plan about the use of cryptocurrency, especially when taxation and regulation are concerned.