ABSTRACT

Nowadays, there is a vast and fast development in crypto currencies. Bitcoin is

one of them which is most popular and known as first decentralized currency.

The legal status of Bitcoin varies substantially from country to country and is
still undefined or changing in many of them. This paper mainly covers working
with Bitcoin in India. Bitcoin transactions are anonymous and most secure but
on the other hand they fail to protect consumers because of lack of regulations.
Also the use of cryptocurrencies is very less because of lack of its awareness
and vendors. This paper also coveres the legality and regulatory framework with
respect to Bitcoins in India.

As a virtual currency and peer-to-peer payment system, Bitcoin may signal

future challenges to state oversight and financial powers.

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 CHAPTER- 1

INTRODUCTION

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INTRODUCTION

A cryptocurrency (or crypto currency) is a digital asset designed to work as a

medium of exchange using cryptography to secure the transactions and to
control the creation of additional units of the currency.1 Cryptocurrencies are
classified as a subset of digital currencies and are also classified as a subset of
alternative currencies and virtual currencies. Bitcoin, which is regarded as one
of the most populous cryptocurrency, was created in 2009 as the first
decentralized cryptocurrency2. Since then, numerous other cryptocurrencies
have been created.3 They are frequently called “altcoins” as a blend of bitcoin
alternative.4 Bitcoin and its derivatives use decentralized control5 as opposed to
centralized electronic money/centralized banking systems.6 The decentralized
control is related to the use of bitcoin’s blockchain transaction database in the
role of a distributed ledger.

Decentralized cryptocurrency is produced by the entire cryptocurrency system

collectively, at a rate which is defined when the system is created and which is
publicly known. In centralized banking and economic systems such as the
Federal Reserve System, corporate boards or governments control the supply of
currency by printing units of fiat money or demanding additions to digital
banking ledgers. In the case of decentralized cryptocurrency, companies or
governments cannot produce new units, and have not so far provided backing of
other firms, banks or corporate entities which hold asset value measured in it.
The underlying technical system upon which decentralized cryptocurrencies are
based was created by the group or individual known as Satoshi Nakamoto.7 As
of October 2017, over a thousand cryptocurrency specifications exist; most are
similar to and derived from the first fully implemented centralized
cryptocurrency, bitcoin. Within cryptocurrency systems the safety, integrity and

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balance of ledger are maintained by a community of mutually distrustful parties
referred to as miners: members of the general public using their computers to
help validate and timestamp transactions adding them to the ledge in accordance
with a particular timestamping scheme. Miners have a financial incentive to
maintain the security of a cryptocurrency ledger. Most cryptocurrencies are
designed to gradually decrease production of currency, placing an ultimate cap
on the total amount of currency that will be in circulation mimicking previous
metals (Andy, 2011). Compared with ordinary currencies held by financial
institutions or kept as cash on hand, cryptocurrencies can be more difficult for
seizure by law enforcement (Andy, 2011). This difficulty is derived from
leveraging cryptographic technologies. A primary example of this new
challenge of law enforcement comes from the Silk Road case, where Ulbricht’s
bitcoin stash “was held separately and encrypted”8. Cryptocurrencies such as
bitcoin are pseudonymous, though additions such as Zerocoin have been
suggested, which would allow for true anonymity

MEANING OF CRYPTO CURRENCY

Crypto currency is a any form of currency that only exists digitally, that
usually has no central issuing or regulating authority but instead uses a
decentralized system to record transactions and manage the issuance of new
units, and that relies on cryptography to prevent counterfeiting and fraudulent
transactions

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DEFINING THE CRYPTOCURRENCY

A bitcoin is a virtual currency first introduced in the year 2008 by an

anonymous group called Satoshi Nakamoto. It’s an open source peer-to-peer
cryptographical system (direct connections without an intermediary) where
transactions happen through a public ledger called blockchain, handling users’
data anonymously. Eight years since its introduction, bitcoin is today the most
widely used and accepted digital currency.

Bitcoins are the most sought after cryptocurrency in the market. However there
are several other currencies which have gained momentum ever since the
concept has been introduced. Below are some other of crypto currencies that
exist:

1. Ethereum – Ethereum is the second most famous name in the virtual

currency market. It somewhat similar to the concept of bitcoins however it
possesses some additional attributes. It is purely a block chain based platform.
What makes it special is the Ethereum Virtual Machine. The blockcain in
ethereum is used not to store the data of the transaction but to make sure smooth
run of a decentralized application.

2. Ripple – Ripple is more in the nature of a payment protocol created and

developed by a company named Ripple, which is based on the concept of Real
time Gross Settlement. It was initially released in the year 2012.

3. NEM – Similar to bitcoin, NEM is also a peer-to-peer blockchain platform

launched in the year 2015. It uses the unique Proof-of-Importance algorithm , a
way to validate transactions and achieve the distributed concensus.

4. Litecoin – Initially introduced in the year 2011, litecoin is mostly identical to

bitcoin. What makes it stand out is the use of Segregated Witness and the

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Lightning Network. Some other cryptocurrencies are bbqcoins and dogecoins
which have not gained much significance due to their technical shortcomings
and inability to stand out.

In 2009, a white paper was published online under the name Satoshi Nakamoto
(probably a pseudonym), proposing a new solution for something that some
Internet enthusiasts had been looking forward to since the beginning of the
Internet: A form of digital cash that functions based on principles dear to
libertarian strands of the Internet community – non-state administered,
decentralized (“peer to peer”) and open source based. In this strand of thought,
cryptography and anonymous transaction systems are seen as important
instruments to defend privacy and freedom in the digital age. With trust in the
monetary and financial system shattered by the crisis, Nakamoto’s proposal was
taken up in 2009 and implemented by a significant number of supporters.

History of cryptocurrency

In 1998, Wei Dai published a description of "b-money", an anonymous,

distributed electronic cash system.10 Shortly thereafter, Nick Szabo created "bit
gold".11 Like bitcoin and other cryptocurrencies that would follow it, Bit Gold
was an electronic currency system which required users to complete a proof of
work function with solutions being cryptographically put together and
published. A currency system based on a reusable proof of work was later
created by Hal Finney who followed the work of Dai and Szabo. The first
decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous
developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function,
as its proof-of-work scheme.12 In April 2011, Namecoin was created as an
attempt at forming a decentralized Domain Name Servers (DNS), which would
make internet censorship very difficult. Soon after, in October 2011, Litecoin

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was released. It was the first successful cryptocurrency to use script as its hash
function instead of SHA-256. Another notable cryptocurrency, Peercoin was the
first to use a proof-ofwork/proof-of-stake hybrid.13 IOTA (Distributed Ledger
Technology) was the first cryptocurrency not based on a blockchain, and instead
uses the Tangle.14 Many other cryptocurrencies have been created though few
have been successful, as they have brought little in the way of technical
innovation.15 On 6 August 2014, the UK announced its Treasury had been
commissioned to do a study of cryptocurrencies, and what role, if any, they can
play in the UK economy. The study was also to report on whether regulation
should be considered

The evolution of cryptocurrency memes, and bitcoin

1. street art
17 Block Bills Matthias Dorfelt created a type of physical bitcoin that looks
similar to the fiat money. He used the hashes fro 64 random blocks and turns
them into an eccentric design that was created by his own software. He further
created his own symbols for the hexadecimal numbers that he used along the
bottom of every bill. Dorfelt acknowledged the work of Satoshi where he
created the bill with codes except the signature of the name of “Satoshi” on the
bill where he used the number of transfers stored in each block to tell the worth
of each bill.

2. Art for Crypto

Vesa Kivinen, the founder of Artevo Contemporary started a new
cryptocurrency infused platform called ArtForCrypto.com. His work used
various mediums such as digital photography mixed with oil and canvas

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paintings. The paintings consisted of visual depictions of the bull and bear,
Satoshi Nakamoto, and one called the split among many others.

3. Phneep Phneep
It is a crypto-artist and very good in pixel blending as he is known for
manipulating movie covers, logos, and other images from pop-culture with
bitcoin-related imagery. After joining bitcoin in 2012, he decided to focus on
bitcoin satire in 2014 as he wanted to contribute to the crypto-ecosystem,
although he had coding limitations

4 . Crypto graffi
As an early bitcoin adopter, Cryptograffi was the first artist to utilize a public-
facing cryptocurrency wallet to receive donations for street art. His work has
been seen all over the crypto-circuit, shared by luminaries, and featured in
online publications.

TYPES OF CRYPTOCURRENCY

1) Litecoin (LTC)

Litecoin, launched in the year 2011, was among the initial cryptocurrencies
following bitcoin and was often referred to as ‘silver to Bitcoin’s gold.’ It was
created by Charlie Lee, a MIT graduate and former Google engineer. Litecoin is
based on an open source global payment network that is not controlled by any
central authority and uses "scrypt" as a proof of work, which can be decoded
with the help of CPUs of consumer grade. Although Litecoin is like Bitcoin in
many ways, it has a faster block generation rate and hence offers a faster

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transaction confirmation. Other than developers, there are a growing number of
merchants who accept Litecoin.

2) Ethereum (ETH)

Launched in 2015, Ethereum is a decentralized software platform that

enables Smart Contracts and Distributed Applications (ĐApps) to be built and
run without any downtime, fraud, control or interference from a third party.
During 2014, Ethereum had launched a pre-sale for ether which had received an
overwhelming response. The applications on Ethereum are run on its platform-
specific cryptographic token, ether. Ether is like a vehicle for moving around on
the Ethereum platform, and is sought by mostly developers looking to develop
and run applications inside Ethereum. According to Ethereum, it can be used to
“codify, decentralize, secure and trade just about anything.” Following the
attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and
Ethereum Classic (ETC). Ethereum (ETH) has a market capitalization of
$41.4 billion, second after Bitcoin among all cryptocurrencies. (Related
reading: The First-Ever Ethereum IRA is a Game-Changer)

3) Zcash (ZEC)

Zcash, a decentralized and open-source cryptocurrency launched in the latter

part of 2016, looks promising. “If Bitcoin is like http for money, Zcash is https,"
is how Zcash defines itself. Zcash offers privacy and selective transparency of
transactions. Thus, like https, Zcash claims to provide extra security or privacy
where all transactions are recorded and published on a blockchain, but details
such as the sender, recipient, and amount remain private. Zcash offers its users
the choice of ‘shielded’ transactions, which allow for content to be encrypted
using advanced cryptographic technique or zero-knowledge proof construction

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called a zk-SNARK developed by its team. (Related reading, see: What Is
Zcash?)

4) Dash

Dash (originally known as Darkcoin) is a more secretive version of Bitcoin.

Dash offers more anonymity as it works on a decentralized mastercode network
that makes transactions almost untraceably. Launched in January 2014, Dash
experienced an increasing fan following in a short span of time. This
cryptocurrency was created and developed by Evan Duffield and can be mined
using a CPU or GPU. In March 2015, ‘Darkcoin’ was rebranded to Dash, which
stands for Digital Cash and operates under the ticker – DASH. The rebranding
didn't change any of its technological features such as Darksend,
InstantX. (Related reading, see: Top Alternative Investments for Retirement)

5) Ripple (XRP)

Ripple is a real-time global settlement network that offers instant, certain and
low-cost international payments. Ripple “enables banks to settle cross-border
payments in real time, with end-to-end transparency, and at lower costs.”
Released in 2012, Ripple currency has a market capitalization of $1.26
billion. Ripple’s consensus ledger -- its method of conformation -- doesn’t need
mining, a feature that deviates from bitcoin and altcoins. Since Ripple’s
structure doesn't require mining, it reduces the usage of computing power, and
minimizes network latency. Ripple believes that ‘distributing value is a
powerful way to incentivize certain behaviors’ and thus currently plans to
distribute XRP primarily “through business development deals, incentives to
liquidity providers who offer tighter spreads for payments, and selling XRP to
institutional buyers interested in investing in XRP.” 

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6 Monero (XMR)

Monero is a secure, private and untraceable currency. This open source

cryptocurrency was launched in April 2014 and soon spiked great interest
among the cryptography community and enthusiasts. The development of this
cryptocurrency is completely donation-based and community-driven. Monero
has been launched with a strong focus on decentralization and scalability, and
enables complete privacy by using a special technique called ‘ring signatures.’
With this technique, there appears a group of cryptographic signatures including
at least one real participant – but since they all appear valid, the real one cannot
be isolated.

GOAL OF CRYPTO CURRENCY

• Fraud-proof: 

When cryptocurrency is created, all confirmed transactions are stored in a

public ledger. All identities of coin owners are encrypted to ensure the
legitimacy of record keeping. Because the currency is decentralized, you own it.
Neither government nor bank has any control over it.

• Identity Theft:

 The ledger ensures that all transactions between “digital wallets” can
calculate an accurate balance. All transactions are checked to make sure that the
coins used are owned by the current spender. This public ledger is also referred
to as a “transaction blockchain”. Blockachain technology ensures secure digital
transactions through encryption and “smart contracts” that make the entity
virtually unhackable and void of fraud. With security like this, blockchain
technology is poised to impact nearly every segment of our lives.

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• Instant Settlement: 

Blockchain is the reason why cryptocurrency has any value. Ease of use
is the reason why cryptocurrency is in high demand. All you need is a smart
device, an internet connection and instantly you become your own bank making
payments and money transfers.

• Accessible: 
There are over two billion people with access to the Internet who don't
have rights to use to traditional exchange systems. These individuals are clued-
in for the cryptocurrency market.

• You are the owner: 

There is no other electronic cash system in which your account is owned
by you.

IMPORTANCE OF CRYPTO CURRENCY

1. Cryptocurrency is one of the safest and trusted kinds of digital currency that
people prefer nowadays. In a world where there is an abundance of conmen and
looters, we all need to trade in the safest possible ways. Cryptocurrencies give
us that assurance which makes them an important source of investment right
now and in the future as well.
2. Another reason why cryptocurrencies have become extremely in demand is
because of their policies. You don’t really need to deal with a third party when
it comes to cryptocurrency. This gives people a reassurance and a feeling of
safety. The fact that cryptocurrencies are digital currencies alleviates the need
for a third party. You can transact no matter where you are situated at.
3. Cryptocurrency is a low-cost means of transaction. You don’t need to shell
out money in order to exchange digital currencies. All you need in order to be
able to transact is your cell phone and a basic knowledge of cryptocurrencies.
4. Most of the digital currencies have to pay for transactions. In the case of
cryptocurrencies, you don’t really need to pay for the transactions. The reason is
that the people who mine the cryptocurrencies; called as miners get their
compensation from the network itself.

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5. You can store your cryptocurrencies in a safe wallet. Cryptocurrencies give
you the option of storing your money in two kinds of wallets which can easily
be transferred to your account. And the wallets don’t have any charges in order
to be able to store your digital currencies.
6. For most people, privacy is the top-most priority. When dealing in
cryptocurrencies, you can expect your transactions to be highly confidential.
You can carry out your transactions and be anonymous.
7. The amount of money that you want to invest is totally up to
Cryptocurrencies give you the liberty of buying them in fractions as well. If you
feel like one bitcoin is too much, you can split it and buy half or one-third of it.
This reduces the cost for you and does not require you to spend out of bounds.
Using a crypto converter, you can find out the price of any cryptocurrency in
your country’s currency and invest accordingly.
8. Since the senders and recipients of cryptocurrencies don’t directly transfer
any money to the credit cards, you don’t have to share your credentials with
anyone. This helps you in avoiding identity theft. You decide what information
you want to share with the merchant if anything at all makes you doubtful.
9. You get complete autonomy that you look for. When it comes to
cryptocurrencies, there is no third party involved to demand for any fee or
money. You are the only person who is managing your account.

FUTURE OF CRYPTO CURRENCY

1. Reduced Remittance

Many governments around the world are implementing isolationist

policies which restrict remittances made from other countries or vice
versa either by making the charges too high or by writing new regulations.
This fear of not being able to send money to family members and others is
driving more people towards digital Cryptocurrency, chief amongst them
being Bitcoin.

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2. Control Over Capital

Many sovereign currencies and their usage outside of their home country
are being regulated and restricted to an extent, thereby driving the demand
for Bitcoin. For example, the Chinese government recently made it
tougher for people as well as businesses to spend the nation's currency
overseas, thereby trapping liquidity. As a result, options such as Bitcoin
have gained immense popularity in China.

3. Better Acceptance

Today, more consumers are using Bitcoins than ever before, and that is
because more legitimate businesses and companies have started accepting
them as a form of payment. Today, online shoppers and investors are
using bitcoins regularly, and 2016 saw 1.1 million bitcoin wallets being
added and used.

4. Corruption Crackdown

Although unfortunate, digital Cryptocurrency such as Bitcoin are now

also seeing more usage because of the crackdown on corruption in many
countries. Both India and Venezuela banned their highest denomination
and still-circulating bank notes in order to make it tougher to pay bribes
and make accumulated black money useless. But that also boosted the
demand for Bitcoins in such countries, enabling them to send and receive
cash without having to answer to the authorities.

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The Real-world Impact of Crypto Money

While Cryptocurrency and its usage is at an all-time high, so are the

misconceptions about it. Most people still seem to ask - Why use Bitcoin? Since
such currencies use different algorithms and are traded in unconventional ways,
it is important to lookout for some important characteristics before investing in
Bitcoin or others of its ilk. This includes –

 Daily Trading Volume and Overall Market Capitalization

Market capitalization of a cryptocurrency is the total worth of all its forms
which are currently in circulation. New forms of Cryptocurrency might not
be widely available, and therefore might not have high market
capitalization. Similar to this is the daily trading volume, and a
cryptocurrency which has higher trading volume than the others is
considered more successful.

 Verification Channels
Each cryptocurrency has its own verification method. One of the most
common methods for verification is called "Proof of Work". Herein, to
verify a transaction, a computer has to spend time and computing power to
solve difficult mathematical problems. On the other hand, "Proof of Stake"
method allows users with the largest share of the cryptocurrency to verify
the transactions, which requires far less computing power.

 Acceptance of Cryptocurrency
Unless a cryptocurrency is not accepted by major retailers or other
businesses that you deal with, it doesn't stand much use. That is why Bitcoin
still remains the most popular form of digital currency, since its reach is
widespread and is accepted by many businesses and retailers alike.

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Challenges Ahead for Bitcoin

While Bitcoin's astronomical growth cannot be understated, Cryptocurrency

in general have several challenges to meet before finding universal acceptance.
These challenges include –

 Safety and Reliability

Purely based on its digital form, Bitcoin and other types of
Cryptocurrencies are nowadays the favorite mode of payment for both
hackers and criminals because of the air of anonymity it lends. This
instantly makes the general populace weary of using it. In 2014, Mt. Gox,
the largest Bitcoin exchange was hacked and robbed of almost $69 million,
thereby bankrupting the whole exchange. While the people who lost money
have now been paid back, it still leaves a lot of people wary of the same
thing happening again.

 The Debate on Bitcoin Scalability

The cryptocurrency community is up in arms over how the blockchain
will be upgraded for future users. As the time and fees required for
verifying a transaction climbs to record highs, more businesses are having a
tough time accepting Bitcoins for payment. In early 2017, more than 50
companies came together to speed up transactions, but till now the results
have not yet been felt. As a result, more users might start using normal
modes of currency to overcome such blockchain hassles.

 The Rise of the Rivals

Today, Bitcoin is not the only game in town, and while its value has
increased by almost 100% since the beginning of 2016, its share of the
digital currency pile is rapidly reducing owing to almost 700 different
competitors. Its market share has reduced to 50% from 85% a year before, a
sign of the times to come.

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 Unrecognized by Governments
Most of the general populace doesn't understand Bitcoins, and nor does
most of the world's governments. The cost of gaining a license to set up
cryptocurrency companies is sky-high, and there are no regulations in sight
which might make it easier for people looking to invest into them. The U.S.
Securities and Exchange Commission recently rejected a proposal by
Bitcoin to run a publicly traded fund based on the digital currency, which in
turn led to a big plummet in Bitcoin's shares.

NEEDS FOR THE STUDY

1. Crypto currency is a low-cost means of transaction. You don’t needs to

shell out money in order to exchange digital currency.

2. Since the sender and recipients of crypto currencies don’t directly transfer
any money to the credit cards.

3. Most of the digital currencies have to pay for transaction.

4. You get complete autonomy that you look for. When it comes to crypto
currencies, there is no third party involved to demand for any fees or
money.

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STATEMENTS OF PROBLEMS

Crypto currency is a relatively new concept. There are various terms ,

usage in it and there is various crypto currency the various that question
that are challenge in this research I.e.

. The gender wise familiarity of crypto currency.

. Age wise familiarity of crypto currency.

. The most preferred mode of storing crypto currency.

. Exchange are most preferred to buy and trade crypto currency.

. The most important advantages, disadvantages, factors regarding crypto

currency.

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 CHAPTER – 2

RESEARCH METHODOLOGY

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RESEARCH DESIGN

Crypto- is short for “cryptography”, and cryptography is computer

technology used for security, hiding information, identities and
more. Currency simply means “money currently in use”. Cryptocurrencies are a
digital cash designed to be quicker, cheaper and more reliable than our regular
government issued money. Instead of trusting a government to create your
money and banks to store, send and receive it, users transact directly with each
other and store their money themselves. Because people can send money
directly without a middleman, transactions are usually very affordable and fast.
A research design is a frame work or blue print for conducting research
procedure is necessary for obtaining information to solve the problem. Research
designed to assist the decision maker in determining, evaluating and selecting
the best course of action to take in a given situation. Descriptive studies are
usually the best methods for collecting information that will demonstrate
relationships and describe the world as it exists. Descriptive studies are
designed primarily to describe what is going or what exist.
The research design that will be use is Descriptive Research.
 Involves gathering data that describe events and then organizes,
tabulates, depicts, and describes the data.
 Uses description as a tool to organize data into patterns that emerge
during analysis.
 Often uses visual aids such as graphs and charts to aid the reader.

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OBJECTIVE OF THE STUDY

1. To find out awareness about crypto currency.

2. To find out people preference about crypto currency, their trading

preference, what they think as advantage, disadvantages and important
factor about crypto currency.

3. To study the legalization of bit coin in India, its comparison with other
crypto currencies and the government`s stand toward it.

4. To study the future of crypto currency in India, and the views of experts
for investing in the same.

5. To study the view of government and general public perspective towards

cryptocurrency.

6. Can we replace the indian financial system through cryptocurrency.

7. To check how much cryptocurrency is affecting the indian financial

system.

PROBLEMS OF CRYPTO CURRENCY

1. High Volatility

The price of Bitcoin suddenly rise Due to such incidents, it is

complicated for the investors to trust the ecosystem. Additionally, numerous
people have no knowledge of how cryptocurrencies work, even if they own
some. Thus, predicting the rise and fall in the value of cryptocurrencies is
immensely complicated. Another risk of owning cryptocurrencies is that
various new crypto-based companies can create their own currency only to
create hype and to attract investors. But, after the investment, the price of the
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 cryptocurrency drops, making the investor bear losses. Likewise, thousands
of cryptocurrencies are made with the sole intention of scamming investors
and eventually the currency dies. Hence, it becomes tricky for investors to
invest in cryptocurrencies.

2. Low Scalability

Scalability is one of the most debated topics when it comes to the

vulnerabilities in cryptocurrency. At present, the infrastructure for
cryptocurrencies is not quite mature. It is essential to understand the concept
of scalability trilemma, to find the roots of the scalability problem. 
The scalability trilemma states that cryptocurrencies can choose only two
options between speed, decentralization, and security. The most popular
cryptocurrencies, such as the Bitcoin and Ethereum, have selected
decentralization and security. Hence, the speed of cryptocurrency transactions is
painfully slow.

3. Absence of Regulations

Another major issue is that cryptocurrencies are not regulated at all, which
makes it even harder for new investors to trust the system. In fact, a lot of
people find the idea of investing in cryptocurrencies exciting, only because of
the lack of any stringent regulation. We need some regulation to ensure that
cryptocurrencies are used ethically and to observe stability in the
cryptocurrency market. Strong regulations would only make crypto coins and
tokens universally acceptable. 

While some countries are making regulations for safer and efficient use of
cryptocurrencies, others have absolutely banned cryptocurrencies, whereas the
remaining countries have no interest at all. Regulation would reduce the
vulnerability in cryptocurrency and facilitate the growth of blockchain in
mainstream applications.

4. Liquidation Issues

Currently, every cryptocurrency in the market is illiquid. Hence, selling any

assets without affecting the value of the currency is almost impossible for the
investors. Investors can lose hundreds of dollars before they sell the currency.

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 5. Cybersecurity Concerns

Contrary to popular belief, cryptocurrencies are prone to cybersecurity breaches

and hacks. For example, the Swiss blockchain company, Trade.io, has recently
reported that crypto tokens worth almost  millions have been stolen from their
cold wallet. Similarly, multiple ICOs have faced issues with security breaches
and hacking, which cost the investors hundreds of millions of dollars. 

Advantages of Cryptocurrency.

1. Easy to Use.
You know the procedure for opening a simple bank account they
are asking you several documents if there are any mistakes in documents
then they refuse to open an account, also accessing your funds in
different geographical location is a little bit hard.

In the case of cryptocurrency you just need a device that able access the
internet with the help of the device, you can create your wallet and use
where ever and whenever you want.

2. Decentralization.
You know that most of the cryptocurrencies have no central
authority to control, the network is distributed to all participants, each
computer mining nodes is a member of this system.

This means that the central authority has no power to dictate rules for
owners of coins. And even if some part of the network goes offline, the
payment system will continue to operate stably.

3. Use Crypto Internationally.

When you talk about transactions using cryptocurrencies then
there are no limits. You may be in a different part of the world and
the receiver might be in some other hemisphere, you can still
transfer the amount without any hassle.

The inter-country transaction is extremely easy with cryptocurrency

because its function is not under the control of any central bank.

Also, coins cannot be faked, copied or spent twice. These capabilities

guarantee the integrity of the entire system. Every month the number of
online shops, resources, and companies to accept BTC is expanding.

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 4. Low Operation Cost.
Transferring money by using any other online forum or bank
gateway is expensive as they levy considerable fees for the transaction.

If you transfer crypto no need to pay commission and fees to banks and
other organizations. That does not mean cryptocurrencies are free for
transactions, crypto is charging a very small amount of the transaction as
a fee, and in crypto’s, it is the buyer paying the small fee.

The issue with these fees is that they often pile up and could quickly pile
up. Transaction fees are very small and only the buyer gets hit with it.

5. Unlimited Transactions.
In cryptocurrencies, you can pay using your wallet to anyone,
anywhere and any amount. The transaction cannot be controlled or
prevented, so you can make transfers anywhere in the world
wherever another user with a crypto wallet is located.

6. Transparency.
In cryptocurrency, every transaction recorded on the blockchain. The
blockchain keeps information about everything.

If anyone has publicly used the crypto address, then anyone can see how
much crypto is owned. If the address is not publicly confirmed, then no
one will ever know that it belongs to someone.

7. Anonymity.
In cryptocurrencies, you’re able to create an infinite number of
wallets without reference to the name, address or any other information.

8. Highly Secured.
All your transactions will be secure as it is using cryptography. It is next
to impossible for any person other than the owner of the wallet to make
any payment from the wallet unless they were hacked, don’t worry there
are many ways to protect yourself.

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 9. No Inflation.
Coins are limited to use and mine in cryptocurrencies therefore neither
political forces nor corporations able to change this order, there is no
possibility for the development of the inflation in the system.

10.Peer-to-Peer Cryptocurrency Network.

Cryptocurrencies do not have any master server to manage all
transactions. Exchange of information is between 2-3 or more software
clients. All installed by users program-wallets are part of a crypto
network.

Each client stores a record of all committed transactions and the number
of crypto in each wallet. Transactions are made by hundreds of
distributed servers. Neither banks or taxes nor governments can control
the exchange of money between.

Disadvantages of Cryptocurrency.

1. Lack of Knowlege.
Most people are not aware of how to use cryptocurrency and hence open
themselves to the hacker. The digital currency technology is somewhat
complex and therefore one needs to be mindful of it before investing.

2. Strong Volatility.
Since from the beginnings, cryptocurrencies having highly volatile
nature. This is one of the main reasons mass adoption is taking longer
than it should. Many corporations don’t want to deal with a form of
money that is going to go through huge swings in volatility.

3. Large Risks of Investing in Cryptocurrency.

Crypto investments are involved high risk because of its volatile nature
and terrorist and other illegal activity financings, lack of a central issuer,
which means that there is no legal formal entity to guaranty in case of
any bankruptcy.

4. Not Accepted Widely.

Still, cryptocurrencies are not acceptable in countries and online
websites, Very few countries have legalized the use of cryptocurrencies.
It makes it impractical for everyday use. Due to a lack of acceptance.

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 5. Not Able to Reverse the Payment.
If you mistakenly pay someone by using cryptocurrency, then there is no
way to get a refund of the amount paid. All you can do is to ask the
person for a refund and if your request is turned down, then just forget
about the money.

6. Storing of Cryptocurrencies.
If you have stored digital currency on your phone or computer, you
better remember your password and not lose those devices. Losing your
coins means you won’t be able to retrieve it.

That’s why to use secure offline wallets like Ledger Nano.

There is always pros and cons to everything in life and this is why you
need to weigh both actions thoroughly before making a decision.

Cryptocurrencies are here because of making our day to day transactions

easy now as time passes technology usage also getting a wide range as
well as more and more pros and cons added to the technology, it totally
depends upon us how we use technology to make our lives better and
easier.

SOURCE OF DATA

SAMPLY DESIGN

Sampling design: The present study is the descriptive type with the field study seek out
to find out individual awareness on crypto currency and correlate it with age, gender,
and occupation of the individual.

SOURCES OF DATA
Data is facts and statistics collection together for reference. The data is mainly classified into
two group.
Secondary data: the secondary data is collection from website and internet.

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SWOT ANALYSIS
A study undertaken to identify its strength and weaknesses, as well as its external
opportunities and threats.

PLANS OF ANALYSIS
The data is obtained by secondary sources through websites and internet SWOT analysis will
be done to know the advantages and disadvantages of crypto currency .As a result of analysis
crypto currency shows a remarkable improvement in existing currency .The main rationale
behind this research is to determine up to what extent people know what crypto currencies is
what their preference what are their views regarding it`

Research Instruments
I have collected the data through QUESTIONNAIRE by personal meeting and
table–calling with people.

Sampling area:-The sampling area to collect the data is common people Sample
size:-100 respondents

Sample technique:-Convenient technique

Limitations of the Study

 The responses given by respondents may not be true

 Area of study is limited
 Time has been a major constraint throughout the study has been only for
duration of 45 days
 The data sources used for the study is secondary sources

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 CHAPTER 3

SWOT ANALYSIS

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SWOT Analysis

When we use SWOT analysis, Its often for strategic planning. It prepares

for decisions and gives an overall look at the strengths, weaknesses,
opportunities, and threats of business. But SWOT analysis can also be used to
increase and build upon customer satisfaction.
To give a well-rounded overview of  how to use SWOT analysis for a boost in
customer satisfaction, we’ll start with the Strengths and Weaknesses first.

SWOT analysis, for any who may be unfamiliar, is a planning method

typically used in business strategy to identify
the Strengths, Weaknesses, Opportunities and Threats that may face a business
or project.  
A number of us have likely had the opportunity to either observe or participate
in this exercise for the broader business in which we work.  A quick overview
of the core concepts:

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Strengths and weaknesses
Strengths and weaknesses internal to the organization.  Strengths represent
positive attributes or characteristics, factors that provide an advantage. 
Weaknesses are attributes or characteristics that place the business at a
disadvantage relative to others.

Opportunities and threats

Opportunities and threats are external to the organization.  Opportunities
represent external trends and chances to improve performance - something
happening in the outside environment that presents positive potential.  Threats
are elements or trends in the outside environment that could cause trouble for
the business,  place it at risk.

Strengths

1. Bitcoin uses blockchain (a peer-to-peer)

Network between the sender and the receiver. Only these two
parties are involved. It’s unlike any other method of transferring currency
— which involves a third party, like a bank. A middleman is prohibited
from Bitcoin transactions.

2. Positive insane

For most Bitcoin users, this is an insane positive because it’s not
folly to economic turmoil. Bitcoin’s worth is agreed upon by the sender
and the receiver. Not an institution. Even if the economy crashes, Bitcoin
can survive.

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 3. private wallet address

Trading Bitcoin is fully anonymous. It’s 100 percent untraceable.

Unless you decide to make your wallet address — but the majority of
users don’t. Because the anonymity makes your financial data fully
hidden

4. PIN number

It assigned to each Bitcoin masks the identity of the seller. Once the
Bitcoin is sold, the PIN changes anew. At this point, only the buyer
knows the PIN. It’s irreversible, unless the current owner decides to
change the ownership back

Weaknesses

1. Slow transaction
Bitcoin transactions aren’t as fast as they were a few years ago.
This is one of the downsides of Blockchain: the more people use it, the
more Blockchain limits your transactions speeds

2. Forget about the Bitcoin wallet password problem

Since the transactions are encrypted, recovering a lost password isn’t

possible. You’d be surprised how often people forget their password and lose
access to their Bitcoins. In fact, one man bought a few Bitcoin years ago
when it was dirt cheap. Now it’d be worth millions… if only he could find
his password to his wallet.

3. Flactuating value

The value of Bitcoin has shifted relentlessly over the years. And
despite the rocky nature, the media pushes out stories claiming Bitcoin is
the future of money

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Opportunities

1. Cashless transaction

As a society, we’re moving away from physical money in

favor of cashless currencies. In fact, big names like Amazon are
already accepting Bitcoin as payment for their goods. If companies
the size of Amazon are recognizing Bitcoins’ viability, it’s safe to
assume others will follow

2. Technology

The blocks may be able to keep data like criminal records, birth
certificates, and public records private. It may pave the way for
impenetrable encryption. That’s something the masses are leaning
towards for data protection.

Threats

1. Scalability issues:

Too many transactions (overload), although several solutions are present.

2. Dangerous buying
anonymous buying is dangerous. Knowing the transaction is untraceable
will attract the attention of criminals. Because let’s be honest: the more
people accept Bitcoin, the more it’ll likely be used for more nefarious
reasons.

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3. Law enforcement
It’ll also be a problem for the government or law enforcement, after all.
If more criminals adopt Bitcoin into their illegal purchases, law
enforcement will face a challenge in finding and prosecuting these
criminals.

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 CHAPTER – 4

OUTCOME OF THE STUDY

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OUT OF THE STUDY

Cryptocurrency facts takes a simplified look at digital currencies like Bitcoin to

help explain what cryptocurrency is, how it works, and its implications.
Cryptocurrency is a digital currency that uses encryption (cryptography) to
generate money and to verify transactions. Transactions are added to a public
ledger – also called a Transaction Block Chain – and new coins are created
through a process known as mining.

 From the survey we comes to know that 85% of the citizen of india do
not supports cryptocurrency and 15% of citizen of india support
cryptocurrency.

 From the survey we comes to know that, 73% people increase their
interest in using cryptocurrency and 27% people decrease their interest in
using cryptocurrency.

 From the survey,we comes to know that main reason behind that the
government is not supporting the cryptocurrency,70% of the people
thought it is untrackable,20% of the people thought that it reduces the
power of ministry of finance & 10% of people thought that it increases
the illegal activities.

 From the survey, we comes to know that 20% of the people thought that
govt approach is positive towards cryptocurrency& 80% of the people
thought that govt approach is negative towards cryptocurrency

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 From the survey, we comes to know that 50% people interest has been
increased in using cryptocurrency by considering the less fees to operate
& 50% people interest has been decreased in using cryptocurrency by
considering the less fees to operate.

 From the study we comes to know that,45 % people thought that their
interest is increasing in using cryptocurrency & 55% people thought that
their interest is decreased in using cryptocurrency.

 From the survey, we comes to know that 35% people thought that
cryptocurrency diminish the value that you perceive about the currency &
65% people thought that cryptocurrency not diminish the value that you
perceive about the currency.

 From the study we comes to know that,30% people is interested in using

cryptocurrency & 70% people is not interested in using cryptocurrency.

 From the study,we comes to know that 60% People has invested in
cryptocurrency and 40% People has not invested in cryptocurrency.

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 CHAPTER 5

LEARNING EXPERIENCE CONCLUSION

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 LEARNING EXPERIENCE

This project gave me great opportunity to learn about the all aspects of the

CRYPTO CURRENCY And helped me to know about current situation of the

CURRENCY

The learning experience gained by me during the in plant training

was very much practical oriented. Mostly all the concepts which I studied
in the class, are applicable practically

I gained many new management skills and also got a chance to learn new things
on my own experience.

The overall study of the organization

1. Improve skills
One of the most important things you can gain from
internship is new knowledge and network and it helps to improve
many new skills and knowledge

2. Professional communications
It is the best way to learn how to
navigate the working world through real-life hands on experience
one of the most valuable skill you will gain from an internship is
the ability to speak with people in a professionals

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 3. Making connections
The people who will be reference in the
future it will setup many new connections and build the
strong relationship

4. Independence
Internship will teach you to make your own
decision and do things on your own being able to work
independently with little guidence is very important in the
working world

I came to know what exactly needs wheather quality of work or quality of work
to be done or both. And also some extent I could understand the CURRENCY
work culture. Uniformity which is a essential element that management should
maintain it will also create an impression on the minds of another about their
taste, preference, values .I had a great time working on the project, as it given
insights into the working environment of an organization. The environment is
good. I have learn lot of thing there.

This project gave me a great learning experience and at the same time it gave
me enough scope to implement my educational ability. The information advice
presented in this project is based on secondary information.

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 CONCLUSION

The cryptocurrency market, which trades various digital-based coins, can

look exciting, scary, and mysterious all at once to the casual observer. Its
pioneer, Bitcoin, dramatically surged in value and steeply dropped (before
picking back up) in recent months. ICOs (initial coin offerings for new
cryptocurrencies), meanwhile, are emerging at a head-spinning rate.While
some financial advisers remain skeptical, it’s hard to ignore the massive
amount of money invested in the field. We talked to two leading futurists,
who study and predict technology trends, about where they see
cryptocurrency headed—and why you should pay attention.The problem that
we can foresee is the pace of change in regulations; change in regulation usually
takes a route of develop, propose and adopt which generally takes a period.
Regulations or regulatory changes typically evolve at a pace than innovation
thereby killing it by declaring it illegitimate. Also as its not been governed by a
central authority Bitcoin tends to fluctuate widely and to be used globally its
volatility needs to settle down.

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