Cryptocurrency is a form of digital currency in which all transaction data is encrypted and stored decentralized. However, as no central bank has yet acknowledged it, its validity and future are uncertain.
Globally, about 1500 cryptocurrencies exist. In addition to Bitcoin, Ethereum, and other cryptocurrencies. Bitcoin was created to eliminate the need for banks or other financial intermediaries.
Unlike traditional banking, bitcoin exchanges are confirmed by decentralized databases spread across several countries utilizing Blockchain technology.
How does it affect global society?
Because cryptocurrencies are not recognized by any country or central bank, there is concern about their value fluctuating. For example, in December 2017, the price of bitcoin was over $19,000 US dollars, but in December 2018, it was just $3200 US dollars.
There is concern that cryptocurrency will be used in terrorist or other unlawful operations due to their secrecy.
Because private cryptocurrencies are unaffected by official monetary policy, encouraging their use could be detrimental to the country's economy.
The systematic conduct of cryptocurrency transactions requires millions of huge computers, which is a major source of energy waste. For example, in July 2019, academics from Germany's Technical University of Munich (TUM) presented alarming information concerning the bitcoin system's carbon impact.
At a time when many nations around the world are attempting to stop multinational corporations from evading taxes, there is no updated regulatory strategy in place to keep cryptocurrencies out of the category of illegal currency and tax evasion. Stopping attempts will be more difficult.
Has it been affecting Indian society also?
India, according to a research, is in the forefront of cryptocurrency investment, with 10.07 crore cryptocurrency owners. According to a Chainalysis report, India accounts for 42 percent of all crypto-related transactions, and the industry has expanded by 641 percent in India. You can see how quickly the popularity of cryptocurrency is growing in India by looking at these numbers.
Cryptocurrencies are not geographically restricted and can be exchanged all around the world. Cryptocurrencies have the ability to speed the growth process in numerous industries, according to a review of economic challenges in developing countries like India.
Crypto's distributed ledger technology enables users to conduct rapid, direct transactions while also assisting in the tracking of all digital activities, making it significantly more advanced and effective than existing systems such as SWIFT.
Despite COVID-19's devastation, crypto continues to create jobs in India. Over 300 start-ups have created tens of thousands of jobs and made millions of dollars as of today.
Cryptocurrencies come with a lot of hazards, but they also have a lot of benefits, so having the government regulate them could be a good idea.
Although cryptocurrencies present the concept of a future quick and low-cost exchange system in different industries such as trading, investing, technology, and others, they are still in their early stages. However, given the numerous issues surrounding cryptocurrencies (such as privacy, price volatility, and the lack of any framework governing their governance), bringing any private money into the country will be difficult.
As a result, in light of future needs and prospects, it is vital to improve cooperation between the government, digital currency experts, and all stakeholders in the context of cryptocurrencies, consequently raising public awareness about this industry. With future needs in mind, a solid and transparent structure for cryptocurrency regulation can be devised.
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And finally, Thank you @steemflow & @bhattg for the contest.