Cryptocurrency Myths and Realities in India

Cryptocurrency is a virtual currency, and it is defined as a medium of exchange that employs cryptographic protocols to ensure the safety and authenticity of transactions. Such virtual money works on the concept of the underlying technology, Blockchain, that is not regulated by any authority, and this is the reason why cryptocurrencies and their transactions are completely secured. But sadly, the concept of Cryptocurrency is still in its infancy and is generally misunderstood, contributing to the circulation of several misconceptions revolving around it. In India, the RBI Reserve Bank of India , has understood cryptocurrency as a form of digital virtual currency generated through a series of written computer codes that rely on cryptography which is an encryption and is thus independent of any central issuing authority. It is facilitated through blockchain technology and has emerged as a person to person issuance and transaction system that uses private and public keys to enable authentication and encryption for secure transactions. Witnessing the massive popularity of the crypto market, its usage within a year of its usage, and potential revenue loss to the Government of India, the regulators and authorities began to take notice and as a consequence, the Reserve Bank of India RBI issued a press release, cautioning the public against dealing in virtual currencies including Bitcoin and has opened the door for Cryptocurrency in 2020. Cryptocurrencies has turned out a hot commodity among individual and institutional investors. Despite existing for over a decade, in the recent times, there remains a lot many misinformation and myths over digital currencies. Here, the study takes a look and sheds some light over some common myths that persist in the market Dr. R. Vennila "Cryptocurrency: Myths and Realities in India" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45067.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45067/cryptocurrency-myths-and-realities-in-india/dr-r-vennila