Lovely Professional University Releases Cryptocurrency Research Report
Cryptocurrency: A revolution or gimmick has been spearheaded by Prof. (Dr.) Vishal Sarin, Professor of Economics at Mittal School of Business, Lovely Professional University New Delhi, Delhi, India (NewsSee) “If you don’t don’t believe it and don’t do it I don’t understand, I don’t have time to try to convince you. Sorry.” This is how Satoshi Nakamoto, a pseudonymous person, bitcoin developer and the author of the bitcoin white paper, made people realize the importance of cryptocurrency. On the other side, legendary investor Warren Buffet warned people to stay away, calling cryptocurrency a mirage, he prophesied that cryptocurrency would meet a bad end. The “to be or not to be” dilemma still haunts the world for this “decentralized currency”. China has implemented a blanket ban on cryptocurrency and calls it illegal, while a recent assessment found that India has become the world’s largest cryptocurrency owners with 10, 7 crore.
Largely unregulated, crypto assets have grown 200% so far this year, from just under $800 billion to $2.3 trillion, unsupported by any asset or currency. fiduciary. Despite the lack of direct central authority control, cryptocurrency ownership has grown exponentially, now it raises eyebrows, why do governments allow it? If they allow their citizens to trade cryptocurrency, then why not regulate it? Both issues harbor fuzzy solutions, as control is the major issue that scares central banking authorities around the world, as currency control (legal tender) serves many macroeconomic and geopolitical interests, which can go haywire if the cryptocurrency is legalized.
The stateless nature of decentralized currency will circumvent capital controls and the export of wealth. The possibility of circumventing the existing financial infrastructure will make this currency a haven for criminals, particularly involved in money laundering. A major argument hampering the crypto juggernaut’s move to become part of the global financial asset is that it has been unregulated. This has led to many cranial prepositions like, is cryptocurrency a currency to be used in everyday transactions or a store of value that is primarily used for investment purposes? Is cryptocurrency a safe haven asset in times of financial crisis or recession? No one knows the exact answers.
Another multi-million dollar question that still awaits a sensible answer is: can a “peer-to-peer version of e-cash” qualify as cash. On these issues, the world is still waiting for the eureka moment. Recently, Vladimir Putin, President of Russia, urged monetary authorities around the world to show tolerance towards cryptocurrency, his statement acted as a silver line for the future of cryptocurrency. Mr. Putin further mentioned that these currencies still have a long way to go before they can be used as digital currencies for official trade between countries. It was certainly an optimistic time for cryptocurrency owners. In recent developments, the connections between cryptocurrencies and the traditional financial system have grown as big investors, hedge funds, and banks become more involved. If there are issues related to investor protection, the presence of systematic clearinghouses for stable cryptocurrency coins, cryptocurrency can legally be part of the monetary system. Here it is worth mentioning that cryptocurrency solves three fundamental problems of the financial infrastructure system dominated by central banks. a) No one can counterfeit cryptocurrency; therefore, the problem of double spending would be eradicated.
b) Although it is a decentralized system; Cryptocurrency is always trustworthy due to its algorithmic construction, i.e. transactions on the cryptocurrency network must be approved by nodes spread around the world to be included in its large book. A single disagreement can render all operations ineligible.
c) Cryptocurrency completely eliminates the need to produce and distribute currency. Intermediaries are not needed for peer-to-peer transfer between two cryptocurrency blockchain addresses.
However, all these solutions come with strings attached, as the acceptability of cryptocurrency in all countries would be a big challenge. While a country like El Salvador has made cryptocurrency legal tender, while other countries around the world including China and the United States have banned cryptocurrencies. Despite all these problems, if the government helps by providing a new regulatory framework for digital assets, separate from the traditional financial system, including the protection of digital asset holders against fraud, market manipulation and disclosures to promote the transparency, then cryptocurrency has a good chance of becoming the money of the future. , because we must not forget that revolutions never retreat.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)