Cryptocurrency

Rasil Shinde
BALLB Div -B
 What is cryptocurrency?
• A cryptocurrency is a digital or virtual currency that is secured by
cryptography, which makes it nearly impossible to counterfeit or double-
spend. Many cryptocurrencies are decentralized networks based
on blockchain technology—a distributed ledger enforced by a disparate
network of computers. A defining feature of cryptocurrencies is that they
are generally not issued by any central authority, rendering them
theoretically immune to government interference or manipulation.
 What is the impact of cryptocurrency on
economic growth?
• A lot of has been written about cryptocurrencies. Still, less than than 1% of the world population has ever
used a cryptocurrency, according to a 2017 study conducted 97 by Cambridge University. With the slow
growth rate, digital currencies continue to make inroads into the society and transform the way we conduct
business. The world of money and the financial ecosystem is undergoing major transformation before our
eyes.
• While cryptocurrency is slowly gaining mainstream adoption, Blockchain, the underlying technology
behind cyrptocurrency, may offer more potential and unlock billions of dollars in new markets. According
to a report from a research analyst at the Royal Bank of Canada (RBC), crypto and blockchain technology
could unlock $10 trillion market. A lot has been written about blockchain technology. In a simple term,
blockchain is a special type of a distributed ledger database. A distributed ledger is simply a database that
exists across several locations or among multiple participants. A distributed ledger system allows
organization of any chain of records or transactions without the need of intermediaries.
• Blockchain technology is changing the world of finance and giving us a tool that
could potentially transform global law, commerce, and politics. And the danger it
presents? Well, that lies mostly in the fact that cryptocurrencies aren’t well-
regulated, which is bound to change as governments implement new measures to
protect their financial systems.
• The convergence of these two technologies is already impacting in our socity and
the financial ecosystem. The folks at fortunly.com has put together a detailed
infographic on how crypto is disrupting the financial ecosystem. The infographic
includes a brief introduction, overview, covers the trends, has a quick history and
answers who’s who.
 What is the impact of cryptocurrency on
GDP?
• A major complication in determining Bitcoin’s contribution to GDP is the
various forms which Bitcoin takes for different participants in the
economy. To miners, its an output of their capital and labour; to investors,
its a speculative investment and profit earning asset; to consumers, its a
currency. Each of these forms has different implications for how Bitcoin
may be accounted for in a country’s GDP.
 Negative Effects of Banning Crypto
• Currently, the Indian government is deliberating on a draft bill to ban
cryptocurrencies. It was drafted by an interministerial committee (IMC)
headed by former Secretary of the Department of Economic Affairs
Subhash Chandra Garg, who was recently reassigned to the Power
Ministry. The committee was constituted on Nov. 2, 2017, and only met
three times before finalizing this bill. However, the community is
confident that the bill is flawed and has been tirelessly campaigning to
convince lawmakers to re-examine the IMC recommendations.