From meme coins to million-dollar portfolios, cryptocurrency dominates headlines. Yet many wonder: What powers this beast, and where does India stand legally?
Cryptocurrency is borderless money encoded in math. Born from Bitcoin’s whitepaper, it uses cryptography for secure, pseudonymous transfers. Central to it all is blockchain: an immutable public ledger replicated across thousands of computers.
Here’s how it ticks. Users initiate transfers via wallets. Nodes verify validity against rules like double-spending prevention. Miners or stakers then ‘commit’ batches to the chain, earning fees. This decentralization fosters trustlessness.
Altcoins expand horizons. Stablecoins like USDT peg to dollars for stability. Layer-2 solutions like Polygon scale Ethereum affordably.
Access is easy: Sign up on an exchange, deposit INR via UPI, buy crypto. Trade, stake for yields, or HODL long-term. But beware whales manipulating prices and phishing lures stealing keys.
India’s crypto saga is turbulent. RBI’s 2018 circular was quashed, unleashing a frenzy. 2022 budget introduced VDA taxation: 30% on income, 1% TDS at source, no offsets. Exchanges must report to IT dept.
FIU-IND oversight ensures AML compliance; unregistered platforms face blocks. G20 discussions push global standards, with India advocating balanced innovation-regulation.
RBI’s e-rupee trials contrast private cryptos, potentially sidelining them. Despite 15% market tax revenue hike, critics call rules stifling.
Youth-driven adoption surges, with startups building Web3 ecosystems. Future clarity could propel India to crypto superpower status.
Master the tech, honor the laws, and crypto becomes empowerment, not gamble. Stay ahead in this market classroom.