Bitcoin, cryptocurrency and related laws

Recent news related to BITCOIN


Bitcoin’s rising popularity is not a threat to gold's status as the currency of last resort, but it may be nabbing some demand from the more traditional safe haven, Goldman Sachs said on Thursday.

"Gold's recent underperformance versus real rates and the dollar has left some investors concerned that bitcoin is replacing gold as the inflation hedge of choice," strategists led by Jeffrey Currie said in a note. "While there is some substitution occurring, we do not see bitcoin's rising popularity as an existential threat to gold's status as the currency of last resort."

However, JPMorgan argues that bitcoin has long-term upside potential to compete with gold as an alternative currency. Although the digital asset is favored by millennial investors who aren't as influential in the market as older generations, they will ultimately become more significant in mainstream finance, the bank said.

What is BITCOIN

Bitcoin () is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software.

It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Bitcoin’s blockchain

Blockchain is a public list of records that shows when a person deals with cryptocurrency. Depending on the cryptocurrency, the information added to the blockchain may include information such as transaction amount. The information may also include the addresses of the sender and recipient's wallet - a long string of numbers and letters associated with a digital wallet that stores cryptocurrencies.

Both the transaction amount and the wallet address can be used to identify who the actual people using it are.

What is cryptocurrency

A digital currency in which transactions are verified and recorded using cryptography by a decentralized system, rather than by a centralized authority.

Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using cryptocurrency wallets, most of them using bitcoin.

A cryptocurrency’s value changes constantly.

A cryptocurrency (or "crypto") is a digital currency that can be used to purchase goods and services, but uses an online ledger with strong cryptography to secure online transactions. Most of the interest in these unregulated currencies is to trade for profit, with speculators at times skyrocketing prices.

Cryptocurrencies aren’t backed by a government.

Cryptocurrencies are not insured by the government, such as the U.S. Bank deposits this means that cryptocurrencies stored online do not have the same security as money in a bank account. If you store your cryptocurrency in a digital wallet provided by a company, and the company goes out of business or gets hacked, the government may not be able to refund your money, as it may be from banks or credit unions. Will help with the money stored in.

The value of a cryptocurrency can change by the hour. An investment that can be worth thousands of US dollars can be worth hundreds of tomorrow only today. If the value decreases, there is no guarantee that it will increase again.

Is Cryptocurrency Legal in India

The Indian central bank had banned crypto transactions in 2018, following a sudden decision by PM Narendra Modi to impose an 80% ban on the nation's currency. The cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and secured relief in March 2020.


Laws Related to Cryptocurrency

· For all types of tokens, "Regulations under the Companies Act, 2013 and subsequent regulations will be triggered, along with other RBI regulations,"

· The Companies (Acceptance of Deposits) Rules, 2014 (Deposit Rules) which specify that when a company receives money in the form of deposits or loans or in any other form, it is called a deposit, and also provides some exemption by it. Is applicability. "

· Payment tokens may be subject to the Payment and Settlement Systems Act 2007 (PSSA).

· the use of cryptocurrencies may fall under the Prevention of Money Laundering Act 2002 (PMLA), which carries statutory penalties of up to 10 years imprisonment.

· There is also the Banning of Unregulated Deposit Schemes act, it proposes to prohibit all unregulated deposits which could apply to initial coin offerings (ICOs)

No legal protection for payments with cryptocurrency.

Credit cards and debit cards have legal protection if something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process in place to help you get your money back. Cryptocurrency payments are usually not reversible. Once you pay with cryptocurrency, you can only get your money back if the seller sends it back.

Before purchasing something with a cryptocurrency, know the reputation of the seller, where the seller is located, and how to contact someone if there is a problem.


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