TABLE OF CONTENTS

Chapter Contents Page no

CERTIFICATE

DECLARATION

ACKNOWLEDGEMENT

INTERNSHIPS

INTRODUCTION AND
I 1
DESIGN OF THE STUDY

REVIEW OF
II 32
LITERATURE

THEORETICAL
III BACKGROUND OF THE 39
STUDY

DATA ANALYSIS AND

IV 65
INTERPRETATION

FINDINGS,
V RECOMMENDATIONS 91
AND CONCLUSION

BIBLIOGRAPHY

APPENDIX - SURVEY
QUESTIONNAIRE

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 CHAPTER – I
INTRODUCTION

1.1 INTRODUCTION

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 Countless discoveries and inventions have been made throughout our history.

Some of the developments have been minor, some of them have been major, some

have been short-lived, and other events have been more critical and longer-lasting.

There have been certain developments throughout our history that have been so vitally

important to humanity that they are considered the sole factor behind all of

humankind, collectively making progress and taking a critical and everlasting step

forward.

For example, consider how the creation of farming equipment and fertilisers

allowed for the exponential growth of food outputs from fixed pieces of land. Without

these inventions and discoveries, the world would not have been able to support the

explosive population growth that we have witnessed across the globe. It was only a few

hundred years ago that scientists and economists indicated the end of population

growth, due to the fact that food production just grew at numerical rates, doubling or

tripling every certain number of years, while populations grew at exponential rates,

expanding to the power of two or more during that same period.

At the time, this meant that sooner or later there wouldn't be enough food to feed

everyone unless more food could be obtained from fixed pieces of land every year.

Fortunately, this is precisely what happened. Science was able to deliver heavy farm

equipment, fertilisers such as ammonia, and other improvements so that food harvests

could keep up with the population growth rates. This allowed for more people to be

sustained in the same area of land as before. Without these developments, the world

would be a very different place today.

Similarly, the creation of antibiotics, penicillin, the introduction of air travel, ocean

freight, and the steam engine, and more recently, the sharing of information in the

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Information Age that was made possible by the invention of microchips and transistors,

have all changed the world irreversibly. As a result of these innovations and

discoveries, we are more connected, better off, healthier, and have more accessible and

cheaper access to goods and services than ever before.

When it comes to the information age, things have progressed at breakneck

speed, ever since the first dot-com wave in the early to mid-90s. Everything from the

user interface tools and technologies that have defined how we interact and interface

with technology. Everything from payment solutions to banking solutions has

dramatically changed over the last 20 years.

The same can be said for social networks and primary email, along with the

advancements that have been made in fields of artificial intelligence (AI) and big data

analysis, both of which have an impact on everything from helping with governance to

online search. Collectively, we've gone from necessary solutions for all of the above to

having sophisticated software services that combine various aspects of technology to

deliver effective, robust, value- added, and seamless services to billions of people

around the world.

However, with all the progress comes new challenges. AI, big data, and the

ability of governments to implement mass surveillance initiatives, and the ubiquity of

technology all around have begun to pose serious ethical questions and technological

challenges. This leads to the question, where do you draw the line between legal and

big corporations and their relationships with private users, where is the world

headedillegal surveillance? How can we, as a society, trust the data usage collection

and manipulation practices of companies and governments when they aren’t

transparent. When it comes to the role of government?

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 It is with this exciting and challenging background in mind that blockchain will

be discussed. In recent years, blockchain has become a popular technology and so

much more than the latest tech fad. It is, in the opinion of many subject area experts

and tech gurus, the next giant leap for humanity and something that will have a

significant impact on our children and us as the farming and healthcare developments

of the past had an effect on our great-great-grandparents more than a century ago. We

have now entered the new Information Age.

1.2 About the study

What is cryptocurrency

A cryptocurrency is a form of currency that has become popular over the last

several years. Cryptocurrency is created by using the encryption techniques of

computing and mathematics. These techniques allow us to transfer funds and verify that

the transfer did, in fact, occur. Another essential aspect of cryptocurrency is that it is

independent of governments and central banks, making them decentralised.

These days, many important banks are becoming increasingly involved with the

same kind of technology that underlies cryptocurrency. However, it is essential to

understand that any currency that arises from their endeavours won't be true

cryptocurrency because it will be controlled by the banks. The most reliable and most

dedicated advocates of cryptocurrency are determined that it will not be centralised.

How Did Cryptocurrencies Develop:-

Bitcoin is the most well-known cryptocurrency on the market. It has been the

recipient of hype, fame, and publicity. The general public has been fascinated by its

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extraordinary increase in value over the last several years. They have been awe-struck

by the tales of significant wealth that has been generated with bitcoin, for those who

acquired it in its infancy, when it was cheap.

Despite its novelty, people quickly realise that bitcoin is genuine money. In addition to

bitcoin, there are many other cryptocurrencies, who like bitcoin, have had massive

increases in their dollar value. Legitimate governments and businesses are pursuing an

increasing involvement in cryptocurrency. Despite critics, the market for these

currencies is thriving.

Cryptocurrencies, Fiat Currencies, and Stocks:-

Fiat currencies are the currencies we use daily, like the dollar, yen, euro, and

renminbi. Despite having the word currency in the word cryptocurrency, they are more

similar to stocks and shares of the stock market than between fiat currencies and

cryptocurrency. When you purchase cryptocurrency, you get some of the coins for that

cryptocurrency, which acts like a technology stock and a digital entry into a ledger,

known as a blockchain.

What is Block chain technology

Blockchains are digital ledgers and can be formally defined as a

continuouslygrowing list of records that are linked tougher and secured using advanced

cryptography. In more simple terms, a blockchain is literally a chain of blocks. Each

record in the list of a blockchain’s chain is called a block that contains specific types

and pieces of information. Each block will usually include some sort of pointer as a

link to the previous block, transaction data, and a timestamp, which can take a variety

of forms.

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 Another way to look at it is that a blockchain is much like a database where

each entry is linked to the previous and next entry. This means that the information

contained within the blockchain can't be changed, once a block with specific data is

added to the chain. Depending on the chain that you are looking at, there are often

useful tools for exploring that will allow you to scan the transaction data.

Blockchains are resistant to being modified because of their inherent design.

This allows blockchains to record transactions between different parties efficiently.

These transactions are not only verifiable but permanent as well. Once information is

recorded in a blockchain, the data cannot be altered after-the-fact without altering the

subsequent blocks by having the majority of nodes on the network agreeing to the

change.

This inability to change the data within a blockchain make illegal or unfair

actions almost impossible to carry out. If a hacker wished to alter information within a

blockchain, they would have to gain control of every node. This security is one of the

most useful characteristics of the blockchain.

Since blockchains are designed to be verifiable and permanent, they are

especially suitable for recording events, maintaining medical records, drawing up

agreements, fundraising, and keeping track of other documents.

Blockchain Basics:-

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 Whether you are aware of it or not, you conduct business every day, even if you

don't work. At some point, everyone gets online and initiates some kind of transaction.

Whether it is purchasing something from Amazon or buying something from iTunes,

you are engaging in the business of blockchain technology.

Even though the term “blockchain” is relatively new, the technology has been around

for about a decade. The digitised ledger that Satoshi Nakamoto created in 2008 was the

basis for the spreadsheets that manage cryptocurrencies and other online trading

transactions. The technology is used in cryptography, which is how text is coded on the

Internet.

Cryptography is used in blockchain technology to create distributed trust

networks. This, in turn, allows any contributor to the system to operate the transactions

securely without having to obtain authorization from someone else in the digital ledger.

These transactions are then verified, approved, and then recorded in an encrypted

block. This block is saved intermittently and then connected to the previous block,

which in turn creates a chain.

Components of a Blockchain:-

Two main parts make up a blockchain. The first component is the decentralised

network. The decentralised network is what facilitates and verifies the transactions that

are made. Having blockchains on a decentralised network means that the software isn't

limited to one computer system. Instead, it can be controlled on multiple computer

systems, and more importantly, it isn't controlled by the government.

The second component is the indisputable ledger where the transactions are processed and

recorded in a location that is secure. This security makes it almost impossible for someone

who is not connected to the chain to make changes or steal information.

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 Since there can be numerous contributors involved in any blockchain, any of the

contributors can control the information that is entered into the ledger. Since every

transaction is processed securely, and given a permanent time-stamp, it can become

challenging for another contributor to alter the ledger in any way.

Blockchain technology can be used for various computerised and internetbased

applications. One of these applications is smart- contracts. Smart contracts allow

businesses to automatically verify and execute agreements that function independently

in a secure environment. Blockchain technology acts as a middleman for implementing

all business deals, protocols, and programmed exchanges of information in smart

contracts. As more and more transactions are completed online, to not only run our

personal lives but professional lives as well, more and more deals are being signed and

created online.

Blockchain applications have begun to become increasingly popular in the medical

field in recent years. Researchers are now investigating these applications dealing with

digital identity, insurance records, and medical records. There are many medical offices

today that use some kind of digital machine to verify that the information they have on

file is, in fact, your information.

Types of Blockchain:-

There are three major types of blockchain. There are private blockchains, public

blockchains, and consortium blockchains. Public blockchains are created by the public.

Anyone can part Because there isn’t a single person in charge of these blockchains, decisions

are made by many decentralised agreement tools such as proof of work, which is a computer

algorithm that is used by cryptocurrencies like bitcoin. Public blockchains are open and

crystal clear in content, making it easy for anyone who looks at them to understand what they

are and what they can do.

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 Public blockchains, on the other hand, are privately owned by an individual or

organisation. With public blockchains, there is a single, designated person in charge.

While there can be several contributors to this type of blockchain, the final transactions

are either approved or disapproved by the person in charge and then recorded.

The purpose of consortium blockchains, also known as federated blockchains, is

to remove the only autonomy given to just one contributor by the use of private

blockchains. This type of blockchain allows for more than one contributor to be in

charge. Instead, there is a group of companies or individuals that gather and make

decisions that benefit the entire network.

The Business opportunities:-

The 21st century has seen exceptional technological advancement, specifically

in terms of information technology. The latest discussions about Blockchain technology

demonstrate significant technological advancement. This technology has grown to be

among the most popular services in recent years. Blockchain technology makes it

feasible for two parties to have a financial exchange in digital domains without having

an intermediary validate the transaction. Being decentralised in quality, a blockchain is

extremely secure as no single user can change or remove an entry in the blockchain.

Due to its highly secure and encrypted core, blockchain technology has been used as

the basis for the world’s most popular cryptocurrency, Bitcoin. Blockchain

development technology is going to grow in the fields of business, finance, banking;

law, medicine, and real estate.

As it minimises the chances of theft, threats and hacking various cryptocurrency

use blockchain as a base. Along with that various industries out there prefer blockchain

development to make their service offering more secure and verified. Blockchain

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development offers quick data transfer contract management, audits the origin of a

product and even enhances the voting platforms as well. The core functionality of

verification and traceability lure various industries to utilise their offering. Even though

you want to enhance your service offering through blockchain development, you won't

be able to do it easily. Blockchain development deals with various advanced

technologies such as Artificial intelligence, machine learning, NFT and various others.

So, it is a must for you to find a reliable partner that can offer precise solutions

integrating all the required third-party solutions. Blockchain development companies in

India have a reputed name when it comes to dealing with advanced technologies. To

help you decide on your blockchain development company partner, the team of

TopSoftwareCompanies.co has listed the top most reliable blockchain development

companies in India in 2023. All the development companies on the list belong to

different cities in India, like Delhi, Pune, Bangalore, Ahmedabad, Mumbai, Jaipur, and

many others. The listed companies provide top-notch blockchain development

solutions to worldwide clients leveraging their notable years of experience and

expertise.

Other Business opportunities:-

Growing Money

Many experts believe that blockchain technology will become the way of the

future. Cryptocurrency is rapidly increasing because people want to put their money in

a place that is not only safe and secure, but that will also gain value like a savings

account. However, savings accounts aren't as secure as they would like. By the end of

2017, future markets had already been created for bitcoin. That was also the year the

finance industry saw a dramatic increase in Initial Coin Offerings, (ICO). In the last

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year, ICOs have gained more money than venture capital investments.While

cryptocurrencies continue to improve in their abilities to quickly process transactions,

eventually they will compete against credit card companies processing transactions.

The Cloud and Blockchain

At some point, everyone has used the cloud to back up data that they don't want to

lose. If you didn't know, the cloud actually runs on a blockchain. Experts say that we have

started to take luxury for granted. In the past, you couldn't merely click a button and

automatically save data to a backup site like iCloud or OneDrive. Instead, you were required

to transfer the information on a compact disk or flash drive. Then, you would have to take

the disk or flash drive to another computer to download the data.

While you can still do this today, there isn't a guarantee that this type of

technology will last. Like the floppy disks of the past, compact discs and flash drives

may become obsolete, but internet saving applications will always be updated because

we now live in a tech-savvy world.

Blockchain and Gaming

eSports and online fantasy sports have grown significantly over the last decade with

more and more people creating online fantasy sports teams. Online games, like Fantasy

Football, were some of the first sites to adopt the earliest versions of bitcoin and other

cryptocurrencies. They also use blockchain technology to run and keep up with the

gaming technology.

The uses of blockchain technology don't just stop with fantasy sports. The most

popular smartphone applications to download today are games. This is why, as the

technology grows, more developers will likely make use of blockchains, as well as

cryptocurrency

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Supply Chain Management and Blockchain

Blockchain technology will also benefit supply chain management by providing

a way to trace goods while at the same time being cost effective. For example, sending

packages through the United Parcel Services from one business to another. In the past,

someone had to call to find out where their box was if it hadn't arrived when it was

supposed to. Today, you are provided with a tracking number that allows you to see

where the package you sent or are waiting for is in transit, which creates a blockchain.

Blockchain technology has made it easier for businesses to do business together

because it has dramatically simplified the production process, and transfer process, as

well as the verification and payment methods used.

Blockchain Technology and Quality Assurance

In business, mistakes happen, no matter how careful you are and how closely

you follow processes and procedures, and it can be challenging to pin down how the

mistake occurred. With blockchain technology, mistakes and errors can be traced back

to the point of origin. Not only does this make it easier to investigate mistakes, but it

also saves companies time and money.

What is decentralisation

In blockchain, decentralisation refers to the transfer of control and

decisionmaking from a centralised entity (individual, organisation, or group thereof) to

a distributed network. Decentralised networks strive to reduce the level of trust that

participants must place in one another, and deter their ability to exert authority or

control over one another in ways that degrade the functionality of the network.

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What is Defi

Decentralized finance (DeFi) is an emerging financial technology based on secure

distributed ledgers similar to those used by cryptocurrencies.In the U.S., the Federal Reserve

and Securities and Exchange Commission (SEC) define the rules for centralized financial

institutionslike banks and brokerages, which consumers rely on to access capital and financial

services directly. DeFi challenges this centralised financial system by empowering

individuals with peer-to-peer digital exchanges.

DeFi eliminates the fees that banks and other financial companies charge for

using their services. Individuals hold money in a secure digital wallet, can transfer

funds in minutes, and anyone with an internet connection can use DeFi

1.5 What is NFT

Non-fungible tokens (NFTs) are assets that have been tokenized via a

blockchain. They are assigned unique identification codes and metadata that distinguish

them from other tokens.

NFTs can be traded and exchanged for money, cryptocurrencies, or other NFTs

—it all depends on the value the market and owners have placed on them. For instance,

you could use an exchange to create a token for an image of a banana. Some people

might pay millions for the NFT, while others might think it worthless. Cryptocurrencies

are tokens as well; however, the key difference is that two cryptocurrencies from the

same blockchain are interchangeable—they are fungible. Two NFTs from the same

blockchain can look identical, but they are not interchangeable.

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1.3 FUTURE IN CRYPTOCURRENCY

The global crypto ecosystem has grown tremendously in the past three years. More

than 200 million users are estimated to have an exposure in the asset class. About 10%

of this userbase is from India. Despite regulatory uncertainties, Indian investors have

shown significant interest in the space. Many Web 3.0-based businesses have also

started offering services that cater to the global ecosystem. Today, we envision a role

that Web 3.0 and crypto services can play in India and how we must prepare for this

Timely regulations will build a vibrant and transparent ecosystem

The crypto asset class has potential to give disproportionate returns to investors

over time in a democratic way. This has not been the case with any other

technologybased asset in the past. For example, a US citizen had earlier access to

global IT stocks in 2000s before Indians did.

It is now up to the Indian government to encourage this ecosystem in a

compliant manner. The government has taken great strides already. Be it a TDS on

sales or the recent anti-money laundering (AML) provisions under PMLA, the

messaging from the government has been consistent: invest fairly and declare the

profits.

However, India-based exchanges, which have been the most compliant, have

experienced a significant drop in volumes since July 2022 as investors migrated to

using non-compliant global exchanges for their trades. This must be addressed quickly

Indian businesses that operate with local offices are best suited to be the partner of

choice for the government and the ‘platform of trust’ for the investors. Given that

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services offeredby Indian platforms are on par with global exchanges in terms of

products and ease of use, they must be actively encouraged.

The future is blockchain

Blockchain, the core technology behind crypto and Web 3.0, is already

implemented across industries and is touted as the base of the is already implemented

across industries and is touted as the base of the next big Metaverse trend.

In this context, crypto and Web 3.0 services originating from Indian businesses

can serve a multitude of use cases globally. India will no longer have to be an offshore-

based economy but a leader of an industry.

1) This will attract foreign investments into India and

The benefit of these are plenty

2) The sector will create new jobs that will serve

the economy and the youth well.

This needs a consistent approach in terms of education and in incentivizing businesses. We must

prepare our youth for this 5-10 years ahead.

Digital transactions and the eRupee

Another key benefit of crypto is the ability to enhance payments infrastructure

in terms of time and cost. Cross-border payments via crypto have already given a boost

to some countries. Bitcoin, the beacon of crypto asset class, has been at the forefront of

this change over the years. Now, central bank digital currencies (CBDCs) are being

regarded as a means for governments to enter the ecosystem and gain visibility.

India’s retail CBDC (CBDC-R) started its pilot stage in December 2022 with around

50,000 retail participants across four cities: Mumbai, New Delhi, Bangalore, and

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Bhubaneswar. Users can transact with eRupee through a digital wallet offered by the

participating banks which are stored mobile phones. So far, more than INR 7-lakhworth of

transactions have been facilitated in the retail pilot.

The eRupee is expected to have several benefits, including faster and cheaper

transactions, improved financial inclusion, and reduced reliance on cash. It is also

expected to make it easier for the government to track transactions and crack down on

money laundering.

The eRupee can naturally become the de facto onramp for crypto and Web 3.0

transactions – i.e. investors can transact with crypto and NFTs only via eRupee. This

can also be extended to sectors such as online gaming. With the rise of blockchain

technology, we expect the e-Rupee to be integrated into decentralized applications,

making it an integral part of the Web 3.0 ecosystem in the future.

1.4 PROBLEM DEFINED

While blockchain & cryptocurrency holds tremendous potential for creating

new financial, supply chain and digital identity systems, it's often erroneously seen as a

panacea for business problems.

1. Understanding cryptocurrency takes time and effort

Cryptocurrencies can take a while to get your head around. If you’re not a digital

native, the concept of cryptocurrency (let alone the blockchain) can feel anything

but second nature. And trying to invest in something you don’t really understand is

itself a risk. There are plenty of online resources available to help you, but you’ll

still need to dedicate some time to truly understand the pros and cons of investing

in cryptocurrency.

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 2. Cryptocurrencies can be an extremely volatile investment

cryptocurrency market fundamentally thrives on speculation, and its relatively small size makes it

more vulnerable to price fluctuations. That in turn can wreak havoc with the value of coins—one

of the major disadvantages of crypto currency. While the price of a cryptocurrency can spike to

dizzying highs (with associated benefits for investors!) they can also crash to terrifying lows just

as quickly. So if you’re looking to make stable returns, this might not be the best bet.

3. Blockchain has an environmental cost

At least, the way it is being used today, it does. Blockchain relies on encryption

to provide its security as well as establish consensus over a distributed network. This

essentially means that, in order to “prove” that a user has permission to write to the

chain, complex algorithms must be run, which in turn require large amounts of

computing power. Of course, this comes at a cost. Taking the most widely known and

used blockchain as an example – Bitcoin – last year it was claimed that the computing

power required to keep the network running consumes as much energy as was used by

159 of the world’s nations.

Yes, Bitcoin’s blockchain is a hugely valuable network – with a current market

capacity at the time of writing of over $170 billion – so sophisticated and

computationally intense security is essential. Smaller scale blockchains – such as those

that an rganization may deploy internally to securely monitor and record business

activity – would consume a fraction of that. Nevertheless, it’s an important

consideration and the environmental implications as well as the energy costs can’t be

ignored

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1.5 RELEVANCE OF THE STUDY

This study is relevant to understand deeply the impact of cryptocurrency on investors

decision making and the economy.

It plays vital role in financial investments nowadays and helps raising digital capital and
does

1. Affects the growth of the economy.

2. To meet the current requirements of the digital era and influence decisions

of the investors.

3. Analysing the strengths and weaknesses of cryptocurrency in India.

4. Analysing the current position of cryptocurrency and its investors.

5. Providing information about the economic position of the economy post

introduction of cryptocurrency.

6. Studying the change cryptocurrency has made on investors and economy.

1.6 OBJECTIVES OF THE STUDY

The objectives of this study are as follows:

1. To learn the impact of cryptocurrency on Indian economy

2. To study the current status of cryptocurrency in India and the future it holds

3. To understand the significance of cryptocurrencies according to the perception

of investors.

4. To analyse the perception of investors towards cryptocurrencies.

5. To study the factors considered by the investors & those which ultimately influence

him while investing.

6. To predict the future prospects of the cryptocurrency investment market.

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 7. Examining the current profitability of various cryptocurrencies. Analysis helps

in finding out the earning capacity and returns of cryptocurrencies.

1.7 NEED OF THE STUDY

1. This study will help us to gain knowledge about cryptocurrencies and its impact

and will help us understand various topics such as-

2. Will India have any positive financial leverage by the usage of Bitcoin?

3. Should India say yes to Bitcoin?

4. The crafting of this study is to make us have better understanding towards-

○Bitcoin, Lakshmi Coin and Cryptocurrency.

5. This study provides an opportunity to develop analytical skills, technical skills

and give exposure towards digital currency revolution.

6. To give an overview of the cryptocurrency market in India.

7. To find out the financial position of the company.

8. To find out the profitability of the company.

9. To know the assessing operating efficiency.

1.8 SWOT ANALYSIS

Bitcoin strengths: cryptocurrency can’t be tracked or stolen.

Bitcoin uses blockchain (a peer-to-peer) network between the sender and the receiver.
Only these twoparties 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.

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 And since that pesky third party doesn’t exist, it makes Bitcoin a tax-free currency. The

government doesn’t control or regulate Bitcoin. 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. Surprisingly, this

isn’t why Bitcoin’s popularity skyrocketed within the last few years.

The real strength is the secrecy.

Every person in the Blockchain network has a 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.

A unique PIN number 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.

Although this means nothing can be done once the Bitcoin is sent, it also means

you can’t steal this currency. You can steal your physical wallet. You can steal credit

card info and hijack your online bank account. But you can’t steal Bitcoin. It’s because

of this increased security that pushes people towards cryptocurrency.

Bitcoin weaknesses: crippling slow transactions and accessibility loss.

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.

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 Basically, the blocks get bigger the more it’s in use. Making the whole process

clunky and slow. Until this the problem is resolved, it’s unlikely Bitcoin currency will

usurp conventional credit card usage.

The system isn’t the only issue.

Don’t 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. And what about the survivability of Bitcoin? The

value of Bitcoin has shifted relentlessly over the years. And despite the rocky nature,

media the pushes out stories claiming Bitcoin is the future of money. It’s just like

stocks, however; unpredictable and unreliable. Tomorrow, the value could skyrocket.

The day after, it may plummet. The reliability of this currency is too questionable to

replace traditional money.

Bitcoin opportunities: Safety from compromising data breaches

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. And what about the growing hostility between

the public and the banking institutions?

People are looking for safe, secure, and practical means to avoid using banks.

Data breaches, involving customer data, is consistently occurring with brands like

Facebook and Wells Fargo. How long until the breaches steal credit card info? No one

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wants to find out. And others are moving towards Bitcoin. Even with the hangups, it’s

safe. Anonymous. And doesn’t involve third parties.

And the opportunities don’t stop there.

The blockchain is a phenomenal technology with much promise. 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.

Bitcoin threats: the anonymity against governments and banks.

 Anonymity is a benefit. An opportunity. But it’s also a problem. In the

wrong hands, anonymous buying is dangerous.

 Knowing the transaction is untraceable will attractthe attention of criminals.

Because let’s be honest: the more people accept Bitcoin, the more it’ll likely be used for more

nefarious reasons.

 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. As such, we may see more policies and laws regarding

cryptocurrency. Although it may be difficult to enforce thanks to the

anonymity, the government will still try.

 People fear the consequences of these bills. New tech policies miss the

mark. Not enough government officials understand the implications of

using Blockchain and cryptocurrency. Instead of learning, they’re more

likely to slap on a bill and hope for the best.

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  Bitcoin isn’t the only cryptocurrency on the market. After its rise in

popularity, alternatives like EthereumandPeercoin hit the markets. If the

value of these alternative skyrockets, Bitcoin may be in trouble. To be

honest, the overall value of cryptocurrency and lack of reliability is a

threat to Bitcoin and its competitors. And just because cryptocurrency

appears infallible now, doesn’t mean it will in the future. As more

information about it surfaces, the holes will reveal themselves. People,

such as criminals, will takeadvantage of the issues ASAP.

BENEFITS OF CRYPTOCURRENCY

Job opportunities– With many startups re-entering the market, competition for

top talent in the area of blockchain technology and cryptocurrencies may increase.

From blockchain developers to programmers, production engineers and project

managers, there will be many suitors for top talent in the field of blockchain. Industry

consultants, advertisers, content developers and group administrators among others will

now have a major role to play in the national embrace of cryptocurrencies that will now

be sought by many startups. The RBI will now be encouraged to help control the world

of opportunities that cryptocurrencies generate. The stance made clear by the Supreme

Court should that the RBI rethink its restrictive approach to cryptography and then

come up with more balanced and well-thought-out rules to protect the public interest

and that of other ecosystem stakeholders. The RBI can take a leaf out of its global

peers, as many central banks have launched their cryptocurrencies in other countries.

Nonetheless, the expectation here is that the latest measures will press for more

acceptance and tighter enforcement.

Immunity from theft – At present, the financial system, and the resultant

economy, is not immune to robberies or fraud. As we know the planet is becoming

24
more vulnerable to complex leaks and hacks. With several ransomware attacks, data

leaks from top-notch banks and credit card companies, news headlines have been abuzz

in the last few years. India was going digital at the time, the base of which was built on

Aadhaar authentication, Jan Dhan accounts etc. However, the same does give rise to

flaws in technology, with criminals planning to break the authentication mechanism of

Aadhaar or Jan-Dhan accounts. In making cryptocurrencies all verified transactions

must be deposited in a public ledger. To ensure the legitimacy of record keeping, all

identities of the coin owners are encrypted. You own it because the currency is

decentralized. It has no power over either the government or bank.

Accessibility – Blockchain is the reason why crypto-currency is worth something. Ease

of use is the reason why there is a high demand for crypto-currency. All you need is a

mobile screen, an internet connection, and you easily make payments and money

transfers to your accounts. There are more than two billion people with access to the

Internet who cannot use conventional forms of trade. These people are clued-in to the

crypto-currency market.

Global economies Crypto-currency presents Indians with a golden opportunity

to be on par with the global economy, particularly the present burgeoning millennial

generation. A cryptocurrencies-led economy is a decentralised economy. There is

plenty of time and money to secure third-party approvals, and all the time and energy

spent in negotiations will no longer be needed when buying, for example, a house etc.

Considering some of the trailblazing and epoch-making trends of the past, including the

emergence of the internet, the technological economy, the creation of Silicon Valley

etc., India has just sought to balance the pace of global innovations.

CRITICISM OF CRYPTOCURRENCY

25
Criticism of cryptocurrency

The semi-anonymous aspect of cryptocurrency transfers makes them ideal for a

variety of illegal practices, such as money laundering and tax evasion. Cryptocurrency

supporters, though, also strongly respect their anonymity, citing privacy advantages

such as protection for whistleblowers or dissidents living under oppressive regimes.

Some cryptocurrencies are more intimate.

The cryptocurrency form is not exempt from any financial and security issues. I

reviewed many studies and cryptocurrency networks and even explored several markets

for selling cryptocurrency to investigate the difficulties and problems that occur in this

interactive phenomena.

Money laundering

Money laundering is one danger that is highly likely to increase with the usage

of VC especially with platforms that allow users to exchange virtual currency with real

money. In realistic situations, the police detained a group of 14 people in Korea in 2008

for stealing $38 million from virtual currency transactions. The group translated the

$38 million that gold farming produces from Korea into a paper firm in China as

purchasing payments.

Black market

Perhaps one of the biggest drawbacks and security issues affecting blockchain is

its potential to promote criminal activity. There are several anonymous trades on the

grey and black markets denominated in Bitcoin and other cryptocurrencies. For

example, Bitcoin was used by the notorious “dark web” platform Silk Road, promoting

illegal drug sales and other criminal acts before being shut down in 2014.

26
Cryptocurrencies are now highly common money-laundering devices. They unlawfully

acquired money by funnelling through a “safe” conduit that conceals the origins. For

example, when a gamer wants to leave a game, he/she may want to sell the virtual

currency that he/she owns by selling it in the game forums. The way payments are

collected is dangerous because many fraudulent users can not complete the payment, or

challenge after payment. They will then get their money back plus the virtual currency.

Tax evasion

Since national governments do not oversee cryptocurrencies, cryptocurrencies

typically remain outside of their direct jurisdiction, attracting tax evaders naturally. In

Bitcoin and other coins, several small companies pay workers. They do so to reduce

payroll tax responsibility and to help avoid income tax obligation for their workers.

Even they embrace tokens from online traders to attempt to escape selling and income

tax responsibility.

No refunds

The notion of such an arbitrator violates the decentralizing spirit at the heart of

the new theory of cryptocurrencies. What this means is that if you’re robbed in a

crypto-currency deal you don’t have someone to turn to. Although cryptocurrency

miners play a role in cryptocurrency transactions as quasi-intermediaries, they are not

responsible for arbitrating conflicts between the transacting parties. An example is to

pay upfront for an item that you never get. Large payment providers such as

MasterCard, Visa and PayPal also move in to help solve conflicts between buyers and

sellers. Their method of paying for, or refunding, is intended to avoid vendor fraud.

Although some newer cryptocurrencies seek to resolve the surrounding chargebacks or

refunds problem, the solutions remain incomplete and still unproven.

27
Data loss

Considering a virtually uncrackable source code, impenetrable authentication

protocols (keys) and sufficient security protections (which Mt. Gox lacked), keeping

money in the cloud or a physical data storage unit is better than in a backpack or back

pocket. Also, those who store their data in a single cloud provider will risk failure if the

server is physically compromised or removed from the internet. The early advocates of

crypto-currency believed that, if properly protected, digital alternate currencies agreed

to helpa definitive step away from traditional cash, which they find to be unreliable and

potentially dangerous. All this means cryptocurrency consumers are taking reasonable

and appropriate measures to avoid data loss. For example, if their computer is lost or

robbed, the consumers who store their private keys on single physical storage devices

will incur a permanent financial loss.

High price and not exchangeable

The most popular cryptocurrencies, those with the highest dollar market

capitalisation, have dedicated online exchanges allowing direct exchange for fiat

currency. The remaining cryptocurrencies have no dedicated online exchanges. Many

cryptocurrencies have few extraordinary units and are concentrated in the hands of a

handful of individuals (often currency developers and close associates). For fiat

currencies, they are therefore not explicitly exchangeable. Instead, before the fiat

currency conversion, consumers could turn them into more widely used

cryptocurrencies, including Bitcoin. These holders manage currency stocks efficiently,

making them vulnerable to fluctuations in wild valuation and simple manipulation. This

suppresses competition for some less-used cryptocurrencies, and thus the valuation of

others.

28
1.9 HYPOTHESIS

Hypothesis 1-

H0- There is a positive impact of cryptocurrency on the Indian economy. H1-There

is a negative impact of cryptocurrency on the Indian economy.

Hypothesis 2

H0 - cryptocurrencies have significantly impacted the investment decisions of

investors.

H1- cryptocurrencies have the least impact on investment decisions of investors.

1.9 METHODOLOGY OF THE STUDY

TYPE OF RESEARCH USED

Research can be classified in many different ways on the basis of methodology

of the research, the knowledge it creates, the user groups, the research problem it

investigates, etc. Following is the methodology that we have used in research:

Quantitative Research:

In natural and social sciences, and sometimes in other fields, quantitative

research is the systematic empirical investigation of observable phenomena via

statistical, mathematical, or computational techniques. The objective of quantitative

research is to develop and employ mathematical models, theories, and hypotheses

pertaining to phenomena. The process of measurement is central to quantitative

research because it provides the fundamental connection between empirical observation

and mathematical expression of quantitative relationships.

29
 Quantitative research is generally closely affiliated with ideas from 'the scientific method',

which can include:

1. The generation of models, theories and hypotheses.

2. The development of instruments and methods for measurement.

3. Experimental control and manipulation of variables.

4. Collection of empirical data.

5. Modelling and analysis of data.

30
TYPES OF DATA USED

31
 Here, we have used both Primary and Secondary Data while conducting research.

What is primary data?

Primary data is the data collected directly by the researchers from main sources
through interviews, surveys , experiments, etc. primary data are usually collected from
the source –where the data originally originated from and are regarded as the best kind
of data in research.

In this project questionnaire method for survey is used for collection of primary data.

What is Secondary Data?

Secondary data is the data that have been already collected by and readily
available from other sources. Such data are cheaper and more quickly obtainable than
the primary data and also may be available when primary data cannot be obtained at all.
Here, various websites,books and journals are been referred for secondary data .

32
 CHAPTER – II
REVIEW OF LITERATURE

33
REVIEW OF LITERATURE

Review of literature is very important aspect for every research report without

this should not carry out any research reports. The literature review helps the researcher

to drawn the appropriate study related variables. Based on the literature review further

study should be carried out. Therefore this study drawn some literature review related

to Cryptocurrency.

Fletcher, E., Larkin, C., Corbet, S. (2021)

Countering money laundering and terrorist financing: A case for bitcoin regulation The

paper deals with the inconsistency of effective classification of bitcoin (on the one hand

currency, on the other hand, assets) which leads to bureaucratic war between different

regulatory bodies, where it is proven that criminals and terrorists use the unique

properties of Bitcoin terrorist financing and money laundering schemes.1

Adams, M.T., Bailey, W.A. (2021).

34
Emerging Cryptocurrencies and IRS Summons Power: Striking the Proper Balance between

IRS Audit Authority and Taxpayer Privacy

This article examines the history of the IRS summons power, which is an attempt by

the tax administration to try to use a huge amount of customer data from Coinbase, a

cryptocurrency exchange platform.2

Ramassa, P., Leoni, G. (2021).

Standard setting in times of technological change: accounting for cryptocurrency holdings This

article considers the regulatory issues arising from disruptive technological innovations (i.e.

cryptocurrency) and explores how the International Accounting Standards Board (IASB) has

dealt with the emerging issue of accounting for cryptocurrencies3

Jalal, R.N.-U.-D., Alon, I., Paltrinieri, A. (2021)

A bibliometric review of cryptocurrencies as a financial asset

This paper researches: (1) the determinants of cryptocurrency returns, (2) the efficiency

of cryptocurrencies, (3) tests of portfolio diversification and sheep flock behavior, and

(4) the regulation, governance, and socio- -economic impact of cryptocurrencies.4

Bagus, P., de la Horra, L.P. (2021).

An ethical defense of cryptocurrenciesThis paper examines the advantages and disadvantages of

cryptocurrencies vis-à-vis central bank fiat money, analyzes cryptocurrencies as facilitators of tax

evasion and the ethical implications arising therefrom, and explores the use of cryptocurrencies for

nefarious consumption5

2
3
4

35
Yee, T.S., Heong, A.Y.K., Chin, W.S. (2020).

Accounting treatment of cryptocurrency: A malaysian context

This research examines factors that affect the accounting treatment of cryptocurrencies in

Malaysia6

Kimani, D., Adams, K., Attah-Boakye, R., Frecknall- -Hughes, J., Kim, J. (2020).

Blockchain, business, and the fourth industrial revolution: Whence, whither, wherefore,

and how?

Authors analyse the prospects of blockchain for various business functions, including

banking and the capital markets, corporate governance, international trade, and

taxation7

Catton, J.L. (2020).

Cryptoliquidity: the blockchain and monetary stability

This paper aims to investigate whether cryptocurrencies present an opportunity to

profitably implement rules that promote macroeconomic stability but also investigates

the possibility of reduction in taxes placed on the use of cryptocurrency and

cryptocurrency protocol5

Hairudin, A., Sifat, I.M., Mohamad, A., Yusof, Y. (2020).

Cryptocurrencies: A survey on acceptance, governance and market dynamics This research

deals with a public

Barth, J.R., Herath, H.S.B., Herath, T.C., Xu, P. (2020)

36
Cryptocurrency valuation and ethics: a text analytic approach

This paper examines the extent to which ethical considerations associated with the use

of cryptocurrencies affect the valuations attached to such currencies but also explores

ethical and unethical behaviour associated with the use of cryptocurrencies due to the

lack of its regulation6

Drobyazko, S., Blahuta, R., Gurkovskyi, V., Marchenko, Y., Shevchenko, L.

(2019)

Peculiarities of the legal control of cryptocurrency circulation in Ukraine

This paper discusses the issues of the legal control of cryptoairrency in the system of civil

rights under Ukrainian lawʼ and bills submitted to the Parliament of Ukraine.7

Silva de Souza, M.J., Almudhaf, F.W., Henrique, B.M., Sobreiro, V.A., Kimura, H.

(2019).

Can artificial intelligence enhance the Bitcoin bonanza

This paper investigates how Machine Learning (ML) techniques perform in the prediction of

cryptocurrency prices but also connects it with the accounting process.8

Ram, A.J. (2019).

Bitcoin as a new asset class The author explores the understanding and classification of

bitcoin-related to its regulation9

Chornous, Y., Denysenko, S., Hrudnytskyi, V., Turkot, O., Sikorskyi, O. (2019)

Legal regulation of cryptocurrency turnover in Ukraine and the EU

The paper explores and investigates the legal status of cryptocurrencies14

6
7
8,
9

37
Salawu, M.K., Moloi, T. (2018)

Benefits of legislating cryptocurrencies: Perception of Nigerian Professional Accountants

This research wants to ascertain the view of Nigerian Professional Accountants towards

legislating cryptocurrency in Nigeria, where the researchers concluded that the

legislation of Cryptocurrency or its modified form by the Federal Government of

Nigeria is desirable for the protection of her economy as well as the interest of her

citizens10

Ram, A.J. (2018)

Taxation of the Bitcoin: initial insights through a correspondence analysis

This paper presents a conceptual approach for developing a taxation policy for Bitcoin, using

a multi- jurisdictional analysis.11

Holub, M., Johnson, J. (2018). Bitcoin research across disciplines

Paper deals with Bitcoin under a few areas such as technical fields, economics, law, public

policy, finance, accounting, and others.12

Smith, S.S. (2018).

Implications of next step block-chain applications for accounting and legal practitioners: A case

study The paper explores the implications that blockchain technology and cryptocurrencies have on

authentication and compliance reporting.13

1014Salawu, M.K. and Moloi, T.: Benefits of legislating cryptocurrencies: Perception of

Nigerian Professional Accountants.
Academy of Accounting and Financial Studies Journal 22(6), No. a22, 2018

1115 Ram, A.J.: Taxation of the Bitcoin: initial insights through a correspondence analysis.
Meditari Accountancy Research 26(2), 214-240, 2018,
1216Holub, M., Johnson, J.: Bitcoin research across disciplines
Information Society 34(2), 114-126, 2018,
1317 Smith, S.S.: Implications of next step blockchain applications for accounting and
legal practitioners: A case study.

38
 CHAPTER – III
RESEARCH METHODOLOGY

39
Industry profile

The List of Top 10 Trusted Blockchain Development Companies in India 2023

1. Hyperlink InfoSystem

Hyperlink InfoSystem is a top web and mobile app development company

headquartered in India. The company develops the best blockchain-based solutions for

different industries. They design blockchain products to help with real-world problems

that companies face. The company's blockchain solutions are reliable, secure, and

transparent. They have custom development modules that can be customized based on

the client's requirements. The company delivers the best web and app development, AI

solutions, AR/VR, Salesforce development, Big Data Analytics, IoT development,

Blockchain, CRM Solutions, and much more.

2. QBurst

QBurst is a global product development and consulting company offering

cognitive solutions and custom software development services for micro to large

enterprises. QBurst is an end-to-end solution provider and R&D partner for many

businesses. They provide robust digital solutions with enhanced user experience while

making the development process enjoyable for clients and employees alike.

3. Kellton Tech

Since 2009, Kellton Tech has provided end-to-end cutting-edge IT

transformation solutions ranging from strategy to consultancy to digital and

technological support. Kellton Tech provides long-term solutions to a variety of

industries, including retail, travel, E-commerce, education, and hospitality.

40
4. Infosys

Infosys Limited is an Indian multinational corporation that offers business

consulting, information technology, and outsourcing services. After TCS, Infosys is the

second-largest Indian IT company. Around the world, the firm has 82 sales and

marketing offices and 123 development centers.

5. Indus Net Technology

INT. is a full-cycle product engineering company offering a confluence of

technology, analytics and marketing. With 950+ passionate professionals, it serves

enterprises like Ageas, SBI General, Indusind Bank, Dr. Reddy's, Cipla, The

Government of India and more. Their consultative & collaborative approach is

analytics-driven. It helps enterprises to navigate every facet of the digital landscape,

identify growth opportunities, reveal competitive advantages, and define engaging

experiences for their customers.

6. Accenture

Accenture is a Fortune Global 500 firm that provides services such as app

development, Oracle, Blockchain, Cloud, Salesforce, SAP, Software Engineering,

Supply Chain and Operations, and so on. Over 492K people work for the company,

which serves customers in 200 locations across 120 countries.

7. Cigniti Technologies Limited

Cigniti Technologies Limited is the world’s leading AI & IP-led Digital

Assurance and Digital Engineering services company that helps global companies

across industries continuously accelerate their Digital Transformation and become

Digital-First. Headquartered in Hyderabad, India, their team of 4,100+ professionals is

41
spread across the US, UK, Australia, Canada, UAE, Czech Republic, South Africa, and

Singapore.

8. TCS

TCS is a well-known IT company in India and one of the most valuable IT

services brands in the world. The firm provides mobile apps, enterprise apps, the

Internet of Things, blockchain, cloud solutions, automation, artificial intelligence, and

many more services.

What are the leading crypto

1. Bitcoin (BTC)

Market cap: Over $549.05B.

Created in 2009 by someone under the pseudonym Satoshi Nakamoto, Bitcoin

(BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a

blockchain, or a ledger logging transactions distributed across a network of thousands

of computers. Because additions to the distributed ledgers must be verified by solving a

cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe

from fraudsters.

Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016,

you could buy Bitcoin for about $500. Since then Bitcoin has witnessed many ups and

downs but has shown tremendous resistance. Last year Bitcoin lost 65% of its market

value and now, as of Jan 10, 2023 Bitcoin is trading in the range of $17,500 to $18,000.

42
2. Ethereum (ETH)

Market cap: Over $ 170 billion

Both a cryptocurrency and a blockchain platform, Ethereumis a favorite of

program developers because of its potential applications, like so-called smart contracts

that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the beginning

of March 2022, its price went from about $11 to over $3,000, increasing more than

27,000%. However, due to the overall market crash, Ethereum plunged to an yearly

low of $1,091 on November 9, 2022 and rebounded sharply to the levels of nearly

$1,400, as of January 10, 2023.

3. Tether (USDT)

Market cap: Over $66 billion

Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s

backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a

value equal to one of those denominations. In theory, this means Tether’s value is

supposed to be more consistent than other cryptocurrencies, and it’s favored by

investors who are wary of the extreme volatility of other coins.

4. Binance Coin (BNB)

Market cap: Over $45 billion

43
 The Binance Coin is a form of cryptocurrency that you can use to trade and pay fees

on Binance, one of the largest crypto exchanges in the world.

Since its launch in 2017, Binance Coin has expanded past merely facilitating

trades on Binance’s exchange platform. Now, it can be used for trading, payment

processing or even booking travel arrangements. It can also be traded or exchanged for

other forms of cryptocurrency, such as Ethereum or Bitcoin.

BNB’s price in 2017 was just $0.10. By the beginning of March 2022, its price

had risen to around $413, a gain of approximately 410,000%. Even after such a huge

market crash, BNB didn’t shake much and is now trading near the levels of $285, as of

January 10, 2023.

5. XRP (XRP)

Market cap: Over $18 billion

Created by some of the same founders as Ripple, a digital technology and

payment processing company, XRP can be used on that network to facilitate exchanges

of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of January 10, 2023, its

price reached at the levels of $0.37, equal to a rise of more than 6,000%.

6. Cardano (ADA)

Market cap: Over $11 billion

44
 Somewhat later to the crypto scene, Cardano is notable for its early embrace of

proof-of-stake validation. This method expedites transaction time and decreases energy

usage and environmental impact by removing the competitive, problem-solving aspect

of transaction verification present in platforms like Bitcoin. Cardano also works like

Ethereum to enable smart contracts and decentralized applications, which are powered

by ADA, its native coin.

Cardano’s ADA token has had relatively modest growth compared to other

major crypto coins. In 2017, ADA’s price was $0.02. As of Jan 10, 2023, its price was

at $0.32. This is an increase of nearly 1500%

7. Solana (SOL)

Market cap: Over $33 billion

Developed to help power decentralized finance (DeFi) uses, decentralized apps

(DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-

of-history mechanisms that help it process transactions quickly and securely. SOL,

Solana’s native token, powers the platform. When it launched in 2020, SOL’s price

started at $0.77. By March 1, 2022, its price was around $101, a gain of nearly

13,000%.

8. Polkadot (DOT)

Market Cap: Over $5 billion

Polkadot (DOT), founded in the year 2016, is a unique blockchain

45
interoperability protocol designed to connect different chains together. It also allows

exchanging data and processing transactions for parachains, or parallel blockchains

without compromising their security. Developers can create their own blockchains

while using the Polkadot security.

The core founder of Ethereum, Gavin Wood created Polkadot. The exciting

feature of DOT is that it has no hard limit on its total supply. Rather, a new token is

constantly in circulation.

Polkadot’s price reached its heights in May 2020 at $6.30 and later in May

2021, the price hit its all-time high of $55.11 and then plunged to a level of nearly $4,

in December 2022. As of January 10, 2023, it was priced at $5.10.

9. Litecoin (LTC)

Market Cap: Over $6 billion

Litecoin (LTC), an open-source blockchain project launched in 2011, was

created by former crypto exchange Coinbase software engineer Charlie Lee. It was one

of the initial cryptocurrencies whose code is imitated from Bitcoin’s. Despite the fact

that it has similarities with Bitcoin, it is developed to have a faster transaction

confirmation time. It can be used as an avenue for paying people around the world

without a mediator. LTC is frequently considered as “silver to Bitcoin’s gold.”

Litecoin has a total round-off supply of 84 million tokens. In May 2021, it

recorded its lifetime high of $413.47 but it dropped by over 50%. There are a growing

number of merchants that undertake Litecoin. It has a per token value of around $84,

the 11th-largest cryptocurrency in the world.

46
10. Avalanche (AVAX)

Market Cap: Over $4 billion

AVAX is a native token of Avalanche blockchain which supports smart contract

functionality. It works on the Proof of Stake (PoS) mechanism and is known as one of

the fastest and trustworthy smart contract platforms in the DeFi space. Like Ethereum,

it supports smart contracts to run decentralized applications on its network and uses

Solidity language, the same which is used by Ethereum.

Avalanche has a limited supply of 720 million AVAX tokens. Half of which

were created and distributed at the time of its launch in 2020. The remaining tokens are

yet to be generated via the minting process in the form of staking rewards. Moreover,

unlike Bitcoin and Ethereum, Avalanche’s fees are not paid to validators; rather all fees

are burned which increases the scarcity of AVAX.

AVAX was priced at around $4.00 at the time of its launch in September, 2020.

The token saw its peak at $134.87 on November 23, 2021. As on January 10, 2023,

AVAX is priced at levels of nearly $15.4.

47
CRYPTOCURRENCY IN INDIA

INTRODUCTION

Crypto currencies could provide a significant benefit by overcoming the lack of

social trust and by increasing the access to financial services (Nakamoto, 2008) as they

can be considered as a medium to support the growth process in developing countries

by increasing financial inclusion, providing a better traceability of funds and to help

people to escape poverty (Ammous, 2015).

To provide a comprehensive overview of the opportunities of crypto currencies

in developing countries, it is necessary to understand the general advantages and

disadvantages crypto currencies provide for users compared to central bank-issued fiat

currencies, like the Euro or the US dollar, and to discuss how they emerge from the

underlying technology. For this purpose, the example of two crypto currencies is used

in this paper. The underlying technology of most crypto currencies is blockchain

technology. A blockchain is a decentralized database that is distributed in the network

on a variety of computers. It is characterized by the fact that its entries are summarized

and stored in blocks

TIMELINE OF RBI AND CRYPTOCURRENCY

Despite uncertainty around the future of cryptocurrencies in India, investments

in the unregulated digital asset, especially Bitcoin, has shown a breathtaking upward

trend since 2020. Data from various domestic cryptocurrency exchanges suggest that

more than 1.5-2 crore Indians have invested in the asset class, hitting the $10 Billion

mark in November this year. The growing number of cryptocurrency adopters suggests

48
a shift in the investment paradigm in the country that is known to invest more

frequently in gold and other safer assets. Ahead of the much anticipated

Cryptocurrency and Regulation of Official Digital Currency Bill, let us have a look at

the journey of the virtual asset so far.

2008- Inception of Cryptocurrencies

The journey of cryptocurrency started with the publication of a paper titled

“Bitcoin: A Peer to Peer Electronic Cash System” in 2008 by a pseudonymous developer

by the name of Satoshi Nakamoto.

2010: First Sale Using Crypto

Two years later, the first sale of an item using Bitcoin took place with someone

swapping 10,000 Bitcoin for two pizzas. This attached a cash value to cryptocurrencies

for the first time. Soon enough, other cryptocurrencies such as Litecoin, Namecoin and

Swiftcoin began to emerge and the digital asset started gaining traction.

2013: RBI Issues First Circular Regarding Cryptocurrencies

As crypto investments picked up in India too and exchanges including Zebpay,

Pocket Bits, Coinsecure, Koinex, and Unocoin began springing up, the Reserve Bank of

India (RBI) issued a circular warning users of the potential security-related risks

pertaining to the use of virtual currencies in 2013.

49
2016-2018: Demonetisation and RBI’s Banking Ban on Crypto

The increases in preference for digital payments brought about by the

demonetisation experiment also gave an unintended boost to crypto investments,

driving tech-savvy customers to the virtual asset. The Indian banks continued to allow

transactions on cryptocurrency exchanges pushing the RBI to release another circular in

2017 conveying its apprehensions with virtual coins. Finally, a warning clarifying that

virtual currencies are not a legal tender was issued by the RBI and the finance

ministryby the end of 2017.

In March 2018, a draft scheme for banning virtual currencies was submitted by

the Central Board of Digital Tax (CBDT) to the finance ministry and just about a

month later the RBI came out with a circular restraining banks, NBFCs and payment

system providers from dealing with virtual currencies and providing services to virtual

currency exchanges. This dealt a heavy blow to crypto exchanges and trading volumes

fell by 99%.

November 2018: #IndiaWantsCrypto

On 1st November 2018, ten years after Nakamoto’s paper, Nischal Shetty,

Founder of WazirX, started the #IndiaWantsCrypto campaign for the positive

regulation of crypto in India. The earliest impact was seen when the campaign

received a positive response from Rajeev Chandrashekhar, a sitting Rajya Sabha MP.

The campaign was later joined by celebrities such as SathvikVishwanath of Unocoin,

Polygon Co-founder JayntiKanani, renowned entrepreneur and investor Anthony

Pompliano, and DJ Nikhil Chinapa. Nischal’s relentless tweets and support for the

campaign has garnered widespread acknowledgement with the hashtag trending on

50
twitter during the budget session in February where the crypto bill was announced.

Recently, in July 2021, #IndiaWantsCrypto completed 1000 days and the campaign is

still going strong with Nischal’s tweets and lakhs of other crypto enthusiasts joining it in

it’s course.

March 2020: Supreme Court Strikes Down the Crypto Banking Ban

The ban was a massive setback and resulted in crypto exchanges filing a writ

petition in the Supreme Court and the ban was ultimately stricken down, declaring the

RBI circular unconstitutional. Cryptocurrency exchanges, thus, sprung back to life and

the SC ruling came at the best possible time, coinciding with the crypto boom.

2021: Announcement of Crypto Bill

However, the battle for cryptocurrencies in India was not over yet. On Jan 29,

2021, the Indian government announced that it will introduce a bill to create a

sovereign digital currency and subsequently put a blanket ban on private

cryptocurrencies. In November 2021, the Standing Committee on Finance, met the

Blockchain and Crypto Assets Council (BACC) and other cryptocurrency

representatives and concluded that cryptocurrencies should not be banned but

regulated. In early December 2021, Prime Minister Narendra Modi also chaired a

meeting on cryptocurrencies with senior officials.

2022- Announcement of Crypto Bill

The bill introduces section 115BBH to the Income Tax Act, 1961, which states

that income or profits generated from the transfer of 'virtual digital assets' would be

51
taxed at the rate of 30%. It also clarifies that expenses incurred in carrying out such

trades cannot be set-off or deducted from the profits generated, and that losses incurred

from crypto-asset trading cannot be carried over to subsequent financial years. This

measure is consistent with the government's pre-existing stance, as the Minister of

Finance has repeatedly stressed the liability to pay taxes on any profits arising out of

crypto trading under Indian tax law.

2023--Announcement of Crypto Bill

India has maintained its restrictive crypto tax rules from 2022 in 2023, while

adding a potential fine or jail time for non-compliance to the provision around tax

deducted at source (TDS). Finance Minister NirmalaSitharaman did not mention

crypto, virtual or digital assets, blockchain or central bank digital currencies in the

2023 budget, but hidden in the fine print was a change to TDS rules that affects virtual

digital assets (VDA). The amendment proposes a fine and possible imprisonment for at

least three months and possibly up to seven years, and is expected to target retailers

using foreign exchanges. In the nine months after the tax rules were announced,

Indians moved more than $3.8 billion in trading volume from local to international

crypto exchanges. Rajat Mittal, a crypto tax lawyer at India's Supreme Court, said

retailers who use P2P platforms are liable to deduct TDS, but this may incentivize

retailers to return to local exchanges. Ashish Singhal, a co-founder of Indian crypto

investing app CoinSwitchKuber, said to avoid TDS by using offshore or non-

compliant platforms. However, the penalty written into the law in 2023 could provide

even less incentive for crypto traders than after the rules in 2022.

The Bottom Line

52
 Going by the current indications, a strong regulatory framework will be put in

place to deal with cryptocurrencies in India. The decision on which regulatory body

will take care of the issue remains to be taken. Most likely, the government would treat

crypto as an asset class and not a currency. Experts are of the opinion that regulations

will bring more transparency and accountability to crypto trading platforms. Checks

and balances might also be introduced to prevent fraud and monitor cross-border

transactions. Despite uncertainty around the future of the unregulated digital asset,

cryptocurrency adoption has gained significant momentum in the last two years,

making India the biggest investor. Hence, what turn the crypto journey takes in India

post the parliamentary bill will be interesting to see.

LAWS RELATED TO CRYPTOCURRENCY

A cryptocurrency is a form of virtual asset based on a network that is scattered across

a huge number of computers. It is a decentralized form that allows cryptocurrency to exist

outside the control of the central government or authorities

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was

introduced in the Lok Sabha. The bill seeks to create a favorable framework for the

creation of digital currency that will be issued by the Reserve Bank Of India (RBI).

Cryptocurrency Bill: All Top Countries Where Crypto Is Legal, Illegal Or

Restricted

Cryptocurrency is a debatable topic ever since it was introduced. Some

countries believe in the decentralized power of cryptocurrency and some don’t. The

legal status of crypto is different from country to country.

53
 Cryptocurrency is used anonymously to conduct transactions globally between

account holders. This raises currency concerns for the governments of different

countries. Some of the officials or legislators because of the lack of control and illicit

ties may not support the use of cryptocurrency.

Under the country’s anti-money laundering and counter-financing of terrorism

laws (AML/CFT), some countries may have introduced regulations in efforts to lower

the usage for these purposes.

Is Cryptocurrency In India Legal or Not?

Cryptocurrencies as a payment medium in India are not regulated by any central

authority. There are no rules and regulations or any guidelines laid down for settling

disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at

investors’ risk.

The Finance Minister of India, NirmalaSitharaman, proposed to tax digital

assets and has increased the debate on the legality of cryptocurrencies in the country.

While many have embraced the decision to tax virtual currency as it is the first step to

recognizing it, the government is yet to pass any official clarification on this matter of

whether currencies like Bitcoin are legal or not in India.

Based on the various key statements made by the Reserve Bank Of India

Governor as well as various government spokespersons including the Finance Minister

of the country, one can conclude that cryptocurrency is illegal, but there is no certain

ban on it in India. They are unregulated but according to the recent Union Budget 2022,

54
the government of India announced a 30% tax on gains from cryptocurrencies and a 1%

tax deducted at source.

Cryptocurrency Tax In India: What We Know So Far

Tax on cryptocurrency is one of the most confusing aspects in India. Initially, there was

no Income Tax Act or Goods and Services Tax (GST) defined cryptocurrencies in India. In

the recent Union Budget 2022 outcome, the Finance Minister presented a tax regime for

virtual or digital assets that include cryptocurrencies.

1. Cryptocurrency investors are required to report the calculated profits and losses as a

part of their income.

2. A 30% tax will be charged on the earnings from the transfer of digital assets that

include cryptocurrencies, NFTs, etc.

3. Just the cost of acquisition and no deduction will be permitted while reporting earnings

from the transfer of virtual assets.

4. A 1% deduction of tax deducted at source (TDS) on the buyer’s payment if it

crosses the threshold limit.

5. If cryptocurrency is received as a gift or transferred it is subjected to tax at the giftee’s

end.

6. If you face any loss from the virtual asset investment, it cannot be balanced against

other income.

55
Cryptocurrency Bill: The Road Ahead

The Cryptocurrency Bill 2021, is a legislative initiative that was introduced in

the Lok Sabha by the government to regulate the thriving market of cryptocurrency in

India. The industry has seen a rush in investment in the last few years, especially during

the covid period not just domestically but also internationally.

Crypto trading platforms like WazirX, CoinDCX, Zebpay, etc. in India are

witnessing a big leap in volumes. An unregulated crypto market is unfavorable and

risky even when the government wants to protect young entrepreneurs and investors.

By introducing the Cryptocurrency Bill in 2021, the government officially took a step

toward regulating cryptocurrency. The bill seeks to create a favorable structure for the

creation of the official digital currency that will be issued by the Reserve Bank Of India

(RBI). It also prohibits all other private cryptocurrencies but, with certain exceptions to

boost the underlying technology of cryptocurrency. In the Union Budget of 2022, the

government already took the step of imposing a 30% tax and 1% TDS on gains from

virtual digital assets or cryptocurrencies.

IMPACT ON ECONOMY

The impact is of cryptocurrencies on the Indian economy is clearly depicted as

the prices of cryptocurrency market are now falling down. Indian government has made

it clear with their stand of not providing a legal status for cryptocurrency in India. The

reason for this kind of a decision from government hails from first, the challenge of

monitoring the decentralized transactions in cryptocurrencies are difficult to trace

which could be advantageous for the hackers, criminals and also for terrorist activities.

The second reason being cryptocurrency market could be a leading competitor for the

56
banking service industry.Cryptocurrency like Bitcoin has become popular in India like

other nations as the volume of Indian rupee being traded in cryptocurrency have been at

the highest post demonetisation. Researches shows that the volume generated by the

rupee dominated cryptocurrency is the third largest volume traded after American

dollar and yen. The demonetization policy of 2016 may have encouraged the

implementation of cryptocurrencies amongst a substantial share of the population but

realities rapidly began to come out that have subdued the growth of the market in the

country. In spite of its enormous population, India only contributes two percent of the

whole global cryptocurrency market capitalization. Cryptocurrencies in Indian context

portrays few Present and future of Cryptocurrency in India .Presently there is no

regulation in India for cryptocurrencies. The absence of a regulation certain bitcoin

exchanges such as Unocoin, Zebpay, etc have initiated their operation in trading or

cryptocurrencies with Know Your Customer (KYC) norms. The Reserve Bank of India

initially was against the trading of cryptocurrencies in India, however in the year

2014 RBI showed its interest in block chain technology used by cryptocurrency

to reduce the physical paper currency circulation. In 2015, a financial stability report

was published by RBI to identify the importance of private blockchain. In 2016, ICICI

bank with Emirates NBD (in terms of assets, one of the largest banking groups in the

Middle East) has executed transactions and remittance using block chain technology.

Then in 2017, a white paper has been issued by Institute for Development and Research

in Banking Technology (IDRBT) of RBI and also a pilot test was taken.

The Union finance minister in his Union Budget 2018 speech said, “The

government does not consider cryptocurrencies legal tender or coin and will take all

measures to eliminate use of these crypto-assets in financing illegitimate activities or as

part of the payment system.” However, the government has recognized blockchain and

57
said that a “distributed ledger system or the blockchain technology allows organization

of any chain of records or transactions, without the need of intermediaries. The

government will explore use of blockchain technology proactively for ushering in

digital economy.”

Though government is taking a cautious approach on cryptocurrencies, it is

bullish on the use of blockchain. Crytocurrency industry believes that blockchain and

crytptocurrencies have to go hand in hand. But unless and until a decentralised system

is formed, it is as good as keeping track. If only block chain technology is to be

accommodated that just builds up a centralised system which gives authority to a

person or a body to rectify and modify it.

Experts and observers in the country hope and predict that the government will

regulate cryptocurrencies in India in different stages. This favourable and positive signs

give hopes to the industry of cryptocurrency. Mean while private companies dealing in

cryptocurrencies have set up an association called, the Digital Assets and Blockchain

foundation

which has been engaged in educating the public on the advantageous and

investment avenues in cryptocurrency by conducting security checks, identification

documents issued by the government, Permanent Account Numbers (PAN) orAadhaar

IDs.

As the arrival of internet, cryptocurrency also has a tremendous growth

potential. With the help of both these factors of internet and blockchain technology, in

future there are probabilities of virtual banks in India. Hence to prove it on a positive

note the Reserve Bank of India has taken initiatives to launch its own cryptocurrency

named as ‘ Lakshmi’.

58
 India happens to be at a sweet spot of driving growth and innovation by landing

a robust Digital Currency Bill this year. In spite of the several rumors on a potential ban

on crypto in India, there are multiple use cases that could be considered by the

policymakers who understand the true potential of leveraging crypto and its impact on

our economy.

Keeping in mind that our nation’s success in the past three decades has come

from ITeS-based solutions, if India is aiming to reach a $5 trillion economy, we cannot

ignore the $1.7 trlllion market that exists for cryptocurrencies. A forward-looking

crypto policy can have a significant impact on improving our overall financial

infrastructure, help safeguard national security, deter financial frauds, strengthen our

monetary policy, attract international capital, create more job opportunities, and retain

our tech talent to accelerate technological development, thereby driving the nation

towards becoming a global powerhouse.

We will need to prepare for the future and make adequate accommodations to

safeguard our global financial positioning. We also have to become ‘Atmanirbhar’ and

reduce our dependency in situations like the 2008 financial crisis or the 2020 COVID19

crash. Cyberwarfare also poses a sizable threat in our rapidly digitizing country. A

decentralized financial platform could help India resolve such issues and have an added

advantage as these platform networks will not be blocked by any single state or country

in times of national distress or conflict. The other advantage here would be that if we

could create our own social networks on Ethereum, it would help build a decentralized

ecosystem, which has its own positive effect

59
INVESTMENT IN CRYPTOCURRENCY

INTRODUCTION

If the mega cryptocurrency has left you nervous, especially if you are an

investor in digital coins like Bitcoin or Ethereum, hold your nerves as there is a silver

lining in the mayhem the crypto asset class experienced last week.

While the short volatile period has widely been touted as a course correction

(one Bitcoin is currently hovering around $37,000 after touching a record high of

nearly $60,000 just a couple of weeks ago), industry experts are of the view that staying

invested and thinking long-term is the thumb rule to follow for crypto investors in the

country.

India is increasingly adopting Bitcoin and other cryptocurrencies. According to

reports, the country currently has more than one crore crypto investors, and the number

is significantly growing every day with several domestic crypto exchanges operating in

the country.

Despite the Reserve Bank of India (RBI) being wary of cryptocurrencies,

Indians are making a beeline to invest in the digital coins, touted as the most important

asset class of the 21st century.

According to Rahul Pagidipati, CEO, ZebPay, Indian investors are learning to view

Bitcoin as an asset class that belongs in every long-term portfolio.

"Indians own less than 1 per cent of the world's Bitcoin. Being left behind will create a

strategic disadvantage for the Indian economy. In 2021, we expect more institutions

and government officials to recognise that we need to close the Bitcoin gap," said

Pagidipati.

60
 In April 2018, the RBI ordered financial institutions to severe ties with

individuals or businesses dealing in virtual currency such as Bitcoin. However, in

March 2020, the Supreme Court allowed banks to continue handling cryptocurrency

transactions from traders and exchanges, giving a respite to the crypto investors In

March this year, Finance Minister NirmalaSitharaman said that all windows on

cryptocurrencies will not be closed down, bringing further relief to the stakeholders.

Earlier this month, RBI Governor Shaktikanta Das said that the central bank has

flagged major concerns over cryptocurrency to the government.

Amid the uncertainties lies the fact that a 40 per cent dip in the Bitcoin price

from its all-time high looks dramatic but is normal in many volatile markets, including

crypto, especially after such a large rally, say industry players.

"Such corrections are mainly due to short-term traders taking profits. Investors should

invest in education first. Research the underlying value of Bitcoin, Ethereum, and other crypto

assets as you might look at a company's information before buying stocks," said

AvinashShekhar, Co-CEO of ZebPay.

Buyers are aggressively accumulating more and more Bitcoins. This is the

driving factor that has propelled the price growth of the digital coin.According to

Prabhu Ram, Head-Industry Intelligence Group, CMR, if one were to look back at the

last decade, such volatility is consistent and on par for crypto.

"While over the short term, one may feel concerned, the long-term horizon view is

positive. Going forward, Bitcoin will continue to remain a small but significant

investment in the investor portfolio," Ram told IANS. The key industry players feel

that India is a tech and economic power that will emerge as a key player in crypto and

Blockchain adoption.

61
 According to Sumit Gupta, CEO and co-founder of cryptocurrency exchange

CoinDCX, cryptocurrency has "now classified itself as a macro asset class for

investments that can't be ignored. "It will further lead greater mainstream acceptance

than ever before," Gupta had told IANS.

INVESTORS IN CRYPTOCURRENCY

India has never been kind to cryptocurrencies, yet global investors have made huge

bets on the country’s digital coin ecosystem.

In November 2019, Binance, the world’s largest cryptocurrency exchange by trade volumes,

acquired WazirX, an Indian exchange, and last year, another Indian exchange, CoinDCX,

secured financing from Seychelles-based BitMEX and San Francisco-based giant Coinbase.

These investments happened despite the fact that for around two years starting

April 2018, financial institutions in India were restricted from providing services to

crypto exchanges and their customers due to a Reserve Bank of India order. This ban

forced at least two crypto exchanges to shutter. And even now, crypto exchanges in

India are functioning without the services of banks.

But experts believe such investments are likely to continue coming into India.

“There is an increasing trend of foreign cryptocurrency exchanges investing in Indian

cryptocurrency exchanges. It is because India has a population of 139 crore that is

predominantly young which is seen as tech-savvy and more adaptable to crypto

saving,” said Harish BV, co-Founder, Unocoin, which has a userbase of 13 lakh in

India. The median age of Indians is between 28 and 29 years.

62
 In 2018, India’s then-finance minister ArunJaitley had dealt a death blow to the

future of cryptocurrencies in the country. “The government does not recognise

cryptocurrency as legal tender or coin and will take all measures to eliminate the use of

these crypto-assets in financing illegitimate activities or as part of the payments

system,” Jaitley had said. Such remarks, coupled with the RBI ban, nearly drove the

Indian crypto ecosystem to death.

But in March 2020, when India’s apex court set aside RBI’s circular and allowed

financial institutions to engage in digital coin transactions, investors returned to the

market with a vengeance.Within weeks of the RBI ban lifting, trading volumes and

new sign-ups on crypto exchanges went up multifold. Since then, the volumes and

userbase of these exchanges have expanded each month.

“We have been receiving investments consistently since our inception three

years back,” said Sumit Gupta, CEO and co-founder of CoinDCX. “Investors trust us

despite the policy uncertainty. They have seen, how we as a leading player in the

industry have grown, and above all the Indian market does offer a lucrative proposal for

any investor.”

Experts assert that the demand for cryptocurrencies is booming and the untapped market

potential is vast.

“While there is no official data on the number of crypto investors in India,

exchanges like WazirX estimate that 70 lakh-80 lakh investors are holding over $1

billion in crypto investments,” said Nicklas Nilsson, senior analyst at GlobalData.

“Industry estimates suggest a potential investor base of upwards of 10 crore. The sheer

size of the Indian market makes it an attractive option.

63
 Besides the huge growth potential, what is driving investments into India is the huge

cash reserves that global crypto exchanges hold. Rising revenues and investor financing

mean that global giants are flush with cash, which they are using to expand into newer

markets and take advantage of various trends in the cryptocurrency space.

64
 CHAPTER – IV
ANALYSIS AND INTERPRETATION
OF DATA

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS:-

65
 Analysis of data is a process of inspecting, cleaning, transforming, and
modelling data with the goal of discovering useful information, suggesting conclusions,
and supporting decision making.
The process of evaluating data using analytical and logic reasoning to examine each
component of data provided... Data from various sources is gathered, reviewed and
then analysed to form some sort of finding or conclusion.

Why do we analyze data?

The purpose of analyzing data is to get usable and useful information. The analysis,
irrespective of whether data is quantitative or qualitative, may:

1. Describe and summarize the data.

2. Identify relationships between variables.

3. Compare variables.

4. Identify differences between variables.

5. Forecast outcomes.

The research method used was survey through questionnaire.

A sample size of 102 people was taken.

These are the questions asked in the survey questionnaire and the results are as follows

66
4.1 Gender Wise Classification

4.1 Table

Gender
No. Of Respondents Percentage

Male 45 44.1

Female 57 55.9

Total 102 100.0

Interpretation:-

There are total responses of 102 out of which 55.9% are female & 44.1% are male.
There are more responses from female than male

4.1 Diagram

4.2 Occupation wise Classification 4.2

Table

67
Occupation No. Of Respondents Percentage

Student 71 69.6

Employed 23 22.5

Unemployed 8 7.8

Total 102 100.0

4.2 Diagram

Interpretation:-

The above table shows, 69.6% of the respondents belong to the students,22.5%

of the respondents belong to the employed group and 7.8% are responses from the

unemployed group. This shows that student are more aware of further & current affairs

68
4.3 Age Wise Classification

4.3 Table

Age No. Of Respondents Percentage

18-24 76 75.0

24-30 6 5.9

30-36 7 6.9

Above 36 13 11.8

Total 102 100.0

Interpretation:-

The above table shows, 75.5 percent of the respondents belong to the age group

of 18-24 years, and 11.8 percent of the respondents belong to the age group of above 36

years. 6 percent of the responses from 24-30 age group & 7 percent of the responses

69
from 30-36 age group. This shows that age group 18-24 & 36 age group are more

aware of current trend & technology

4.3 Diagram –

4.4 Survey on do they own cryptocurrency:-

4.4 Table

owns cryptocurrency No. Of Respondents Percentage

Yes 29 28.4

No 73 71.6

Total 102 100.0

Interpretation:-

The above figure shows that only 28.4% have owning a cryptocurrency &

71.6% have said no.As most of the people from the sample were learning students

majority of them did not own any type of cryptocurrency, yet there are some who did

own cryptocurrency

70
4.4 Diagram

4.5 How much , If at all have you heard or read about cryptocurrencies such as bitcoin or
Ethereum

4.5 Table

read about No. Of Respondents Percentage

cryptocurrencies

A lot 26 25.5

Some 36 35.3

Not much 30 29.4

Heard about it right now 10 9.8

with this survey

Total 102 100.0

71
Interpretation:-

As shown in the above figure Majority of the people from the sample are aware

about the concept of cryptocurrency and have good knowledge about it as most of them

are learning students and people of the current generation.

4.5 Diagram –

4.6 How likely are you to invest in cryptocurrency this year ? 4.6 Table

invested in No. Of Respondents Percentage

cryptocurrency

Extremely likely 14 13.7

very likely 18 17.6

somewhat likely 33 32.4

not at all likely 37 36.6

Total 102 100.0

72
Interpretation: -

Most of the people are somewhat not likely to invest in cryptocurrency this year as

shown in the above figure and some are considering to buy cryptocurrency this year.

4.6Diagram

4.7 Which one do you think would be more profitable?

4.7 Table

Profitable No. Of Respondents Percentage

stock market 40 39.2

Cryptocurrency 20 19.6

both are equally 42 41.2

profitable

73
Total 102 100.0
Interpretation: -

As shown in the above figure, 41.2% of the people believe that both are equally

profitable. And 39.2% of the people say that the stock market is more profitable to

invest than cryptocurrency as shown in the result. 4.7 Diagram –

4.8 Cryptocurrency has no tangible form, does that diminish the value that you perceive

about cryptocurrency? 4.8 Table

Cryptocurrency has no No. Of Respondents Percentage

tangible

Yes 18 17.6

No 26 25.5

Maybe 53 52

Indifferent( unaffected ) 5 4.9

74
Total 102 100.0
Interpretation: -

The intangibility of cryptocurrency did not strongly affect the majority of the

people and had mixed results. As shown in above figure that 52% of people are ready

to try emerging cryptocurrencies, 17.6% are willing to use cryptocurrencies & rest of

them are not willing to use cryptocurrencies

4.8 Diagram –

4.9 Unlike other currencies, cryptocurrency requires much less fees to operate.
Would this increase your interest in using cryptocurrency?
4.9 Table

Interest in using No. Of Respondents Percentage

cryptocurrency

Definetly 31 30.4

slightly 45 44.1

not at all 20 19.6

indifferent ( unaffected ) 6 5.9

Total 102 100.0

75
Interpretation: -

The above pie chart shows that 44.1 % of samples are slightly willing to use
cryptocurrency, 30.4% of samples are ready to use cryptocurrency as day today
actives,19.6% of samples are not at all interested in cryptocurrency & rest of the
samples 5.9% are indifferent(unaffected) which means any ways they are not willing to
use cryptocurrency even though it
4.9 Diagram –

4.10 In your opinion, which is more risky - investing in the stock market or investing in
cryptocurrency?

10.1.Table

Risk in investing No. Of Respondents Percentage

Stock market 17 16.7

Cryptocurrency 36 35.3

Both are equally risky 49 48

Total 102 100.0

Interpretation: -

76
 The above figure shows that 48% of the sample are saying both are equally

risky investing in the stock market as well as in cryptocurrency, 35.3% of sample are

saying that cryptocurrency is risky to invest & rest 16.7% of the sample are saying

stock market are risky.

4.10 Diagram –

4.11 If cryptocurrency providers created tangible coins or notes for its users with

Banks and ATMs readily available but remained non government regulated.

Would this increase your interest in cryptocurrency?

4.11 Table

Cryptocurrency as a No. Of Respondents Percentage

tangible

Yes 25 24.5

No 29 28.4

Maybe 43 42.2

indifferent(unaffected) 5 4.9

Total 102 100.0

77
Interpretation: -
We understood from the above pie chart that 42.2% of sample are willing
cryptocurrency as tangible coins or notes even though they are not regulated by the
government, 28.4% of the samples are not willing to use cryptocurrency as a tangible
asset, 24.5%of the samples are ready to try cryptocurrency as tangible coins or notes
even though they are not regulated by the government & rest of the sample are
indifferent(unaffected)
4.11 Diagram –

4.12 Cryptocurrency is non-government regulated which offers users more freedom.

Would this increase your interest in using cryptocurrency?

4.12 Table

Cryptocurrency is No. Of Respondents Percentage

nongovernment regulated

Yes 33 32.4

No 29 28.4

Maybe 34 33.3

Indifferent(unaffected) 6 5.9

78
Total 102 100.0

Interpretation: -
From this pie chart we understand that 33.3% of the samples are ready to try
Cryptocurrency even they are not non-government regulated, 32.4% of the samples are
ready to use Cryptocurrency, 28.4% of the sample are not willing to use cryptocurrency
& 5.9% of the sample are indifferent(unaffected)

4.12 Diagram

4.13 If cryptocurrency is government regulated but remains Intangible, would this

increase your interest in using cryptocurrency?

4.13 Table

If cryptocurrency is No. Of Respondents Percentage

government regulated

Yes 49 48

No 22 21.6

Maybe 31 30.4

Total 102 100.0

Interpretation: -

79
 The above pie chart shows that 48% of the sample are ready to use

cryptocurrency and government regulated but remains Intangible, 30.4% are willing to

try cryptocurrency & 21.6% rest of the sample are not willing to use cryptocurrency

even if they are regulated by government

4.13 Diagram

4.14 In 5 years, do you think cryptocurrency will be worth more or less than it is today

4.14 Table

Cryptocurrency worth No. Of Respondents Percentage

significantly more 49 48

Same 28 27.5

significantly less 18 17.6

no change 7 6.9

Total 102 100.0

Interpretation: -

80
 It shows that 48% of the sample are saying there will be significantly more

growth in cryptocurrency, 27.5% of the sample saying their same growth rate in

cryptocurrency,17.6 % of samples say there be significantly less growth in cryptocurrency

& 6.9% of the samples says no changes in cryptocurrency

4.14 Diagram

4.15 How do you think cryptocurrency have impacted the economy of India? 4.15
Table

Impact in the economy No. Of Respondents Percentage

1 23 22.5

2 13 12.7

3 43 42.2

4 14 13.7

5 9 8.8

Total 102 100.0

Interpretation: -

81
 On a scale from 1-5 where 1 being most negatively impacted and 5 being the

most positively impacted, the results are mostly neutral and indicate, cryptocurrency

have not drastically impacted the economy of India.

4.15 Diagram

Hypothesis analysis

Testing of Hypothesis

Hypothesis 1-

H0- There is positive impact of cryptocurrency on Indian economy.

H1-There is negative impact of cryptocurrency on Indian economy.

According to the research analysis here H1 stands true and verified as

cryptocurrency have negative impacted the economy of India because of 2022, the

crypto market suffered throughout. With a market crash early on in the year, it's safe to

82
say that the market has seen better days. Though there is a drastic changes as such but

still a lot of scope for a good effect of cryptocurrency market in India.

H0 stands nullified as per the research as there do not seem any major positive impact

of cryptocurrency in the economy of India and currently seems there are scope in

upcoming days.

Hypothesis 2

H0 - cryptocurrencies have significantly impacted the investment decisions of investors .

H1- cryptocurrencies have least impact on investment decisions of Investors .

According to the data collected and research analysis ,here H0 stands true and verified

as the introduction of cryptocurrency and changes in its nature have clearly shown

significant impact on the investment decisions of the investors .

H1 stands nullified as the statement that cryptocurrency had least impact on investors stands

to be proven false clearly as per the data collected.

83
 CHAPTER – V
FINDINGS, RECOMMENDATIONS

84
 AND CONCLUSION

FINDINGS

1. 44.1% of respondents belongs to FEMALE and 55.9% of respondents belongs to

MALE

2. Majority of respondents belongs to 18-24 years

3. 69.6% of students had responded

4. Only 28.4% respondents are owning cryptocurrency

5. Some of the respondents have heard about cryptocurrency with this survey only

6. Most of the respondents are not interested in investing crptocurrency this year

7. Most of the respondents think that stockmarket is more profitable than

crptocurrency

85
 8. Majority of respondents get more interest in using cryptocurrency after knowing

that cryptocurrency requires much less fees to operate

9. Majority of respondents think cryptocurrency is more risky than stock market

10. Most of the respondents get interest if cryptocurrency is government regulated but

remains intangible

SUGGESTIONS

1. Most of the people had not heard about cryptocurrency itself due to lack of

awareness. So the government should take initiative to make awareness among

the people.

2. The willingness of the people in investing cryptocurrency is significantly less

because there are several risks associated with investing in cryptocurrency like

loss of capital, government regulations, fraud and hacks.

86
 3. Now there is no central authority to regulate the cryptocurrency with proper

rules and regulations. But most of the people prefer it to be government

regulated.

4. The cryptocurrency providers should create tangible coins and notes for its users

with banks and ATMs readily available to increase their interest.

5. Most of the people believes that the cryptocurrency will be worth more than it is

today. So, To make that belief true certain measures should be taken by the

cryptocurrency providers.

CONCLUSION

Crypto-currency is such an invention which has become a global phenomenon. Earlier

RBI warned the Indians from using cryptocurrency that to be associated with money

laundering and terrorist financing. However, cryptocurrency is a modern technology and

a tool which needs to look forward for. Even though there has been no regulatory

response from the Indian government, the number of investors in cryptocurrency is

increasing rather swiftly over the last few years. Indian government should take

87
responsible steps now to regulate such currency as its user in India is rapidly growing.

Future of cryptocurrency in India looks promising and there is ray of hope.

Crypto currencies could provide a significant benefit by overcoming the lack of social

trust and by increasing the access to financial services (Nakamoto, 2008) as they can be

considered as a medium to support the growth process in developing countries by

increasing financial inclusion, providing a better traceability of funds and to help

people to escape poverty .

Bibliography.

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legislatures.

2. 7Alaeddin, O. and Altounjy, R.: Trust, technology awareness and satisfaction effect into

the intention to use cryptocurrency among generation Z in Malaysia. International

Journal of Engineering & Technology 7(4.29), 8-10, 2018,

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APPENDIX

SURVEY QUESTIONNAIRE

91
1.Name

2.Gender

a)Male b) Female

3.Occupation

a)Student b)employed c)unemployed

92
4.Age

a)18 to 24 b)24 to 30 c)30 to 36 d)above 36

5.Mail ID

6 .Do you own cryptocurrency ?

a)Yes b)no

7.How much , If at all have you heard or read about cryptocurrencies such as bitcoin
or ethereum ?

a)A lot b)some c)not much d)heard about it right now with this survey

8.How likely are you to invest in cryptocurrency this year ?

a)Extremely likely b)very likely c)somewhat likely d)not at all likely

9.Which one do you think would be more profitable?

a)stock market b)cryptocurrency c)both are equally profitable

10. Cryptocurrency has no tangible form, does that diminish the value that
you perceive about cryptocurrency ?

a)Yes b)no c)maybe d)indifferent( unaffected )

93
11.Unlike other currencies , cryptocurrency requires much less fees to operate.Would
this increase your interest in using cryptocurrency ?

a)Definetly b)slightly c)not at all d)indifferent(unaffected )

12 In your opinion , which is more risky - investing in stock market or investing in

cryptocurrency ?

a)Stock market b)Cryptocurrency c)Both are equally risky

13 If cryptocurrency providers created tangible coins or notes for its users with

Banks and ATMs readily available but remained non government regulated.

Would this increase your interest in cryptocurrency ?

a)Yes b)no c)maybe d)indifferent(unaffected)

14 Cryptocurrency is non government regulated which offers users more freedom Would
this increase your interest in using cryptocurrency ?

a)Yes b)no c)maybe d)Indifferent(unaffected)

15.If crypto currency is government regulated but remained Intangible , would

this?

a)Yes b)no c)maybe

16.In 5 years , do you think cryptocurrency will be worth more or less than it is today

a)Significantly more d)same c)significantly less d)no change

94