Introduction To Various Cryptocurrencies
Cryptocurrencies fall under the domain of virtual currencies. Unlike the traditional form of money i.e., paper currency Cryptocurrencies are digital in nature. Cryptocurrencies can be used for purchasing goods and various services but it uses a strong cryptography (a method of protecting information through the use of codes) to secure online transactions and hence they are difficult to counterfeit. All the information i.e. transactions and creation of Cryptocurrencies are stored in a public ledger in an encrypted form. As Cryptocurrencies are decentralised in nature, the government or the banks has no control over it hence, it comes under the ownership of the user.
Types of Cryptocurrencies around the World
With the invention of the term Cryptocurrencies in the year 2009 when Bitcoin (considered to be the first Cryptocurrency) was created the world has a long way and there are around 1000 Cryptocurrencies in the market. Hence, we will list some of the major Cryptocurrencies around the world.
BITCOIN (BTC)
Created in the year 2009 by an individual or group of individuals using the pseudonym Satoshi Nakamoto. Bitcoin is considered to be the first Cryptocurrency ever developed and currently, there are more than 18.5 million Bitcoin tokens under circulation.
LITECOIN (LTC)
Litecoin was launched in the year 2011 by Charlie Lee as a spinoff of Bitcoin. As of January 2021, Litecoin has a market cap of USD 10.1 billion making it the 6th largest Cryptocurrency in the world.
ETHEREUM (ETH)
Launched in the year 2015 by Vitalik Buterin, Ethereum is the 2nd largest Cryptocurrency in the world.
CARDANO (ADA)
Founded in the year 2017 by Charles Hoskinson who is also the co-founder of Ethereum. As of January 2021, Cardano has a market cap of USD 9.8 million.
DOGECOIN (DOGE)
Invented in the year 2013 by software engineers Billy Markus and Jackson Palmer. Its market value surged after a tweet from Tesla and Space X’s CEO Elon Musk
Indian Government’s View on Cryptocurrency:
In the year 2018, the finance ministry had issued a statement saying that the government does not consider Cryptocurrencies to be legal tender and all measures will be taken to eliminate the usage of Cryptocurrencies. Soon after the Reserve Bank of India issued a circular stating that all banks and government entities should stop providing any kind of services to all the parties associated with Cryptocurrencies.
In 2020, with the rise and advancement of the usage of Cryptocurrency, this circular was retracted by the Supreme Court of India allowing banks to resume their transactions with parties associated with Cryptocurrencies. NASSCOM tweeted welcoming this decision and soon there was a boost in Cryptocurrency trading in India.
Still, the Government of India is planning to ban all private digital currencies in India and favours a digital currency that will be backed by the Reserve Bank of India.
