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Throughout history, modes of exchange have changed over time. As per the need and the knowledge of the people in the respective generation, the concept of money has constantly transformed. From the barter system to physical currencies, cryptocurrencies emerged as a revolutionary form of digital assets.
Bitcoin was created as a substitute for the banking system during a financial crisis in 2009. Since then, cryptocurrencies have attracted interest on a global scale, revolutionizing how we see and use money.
Digital Assets Transforming the Financial Landscape
It wouldn’t be so wrong if we say that our whole life is getting digitalized day by day. So is the online marketplace where digital assets are a big term. Do you know what digital assets are? A "digital asset" is anything that is created and maintained digitally, can be located and identified, and provides value. Digital assets are more common and valuable today as a result of the advancement of technology in both our personal and professional life. Digital assets are more common and valuable today as a result of the advancement of technology in both our personal and professional life.
For a long time, various types of data, pictures, videos, written content, digital currencies, and more have been seen as having ownership rights. Racing concerning the growing world, these digital assets have turned into a global phenomenon and have captured the attention of several tech enthusiasts, investors, and financial institutions making a profound impact on the future of finance.
So, What is the hype about Cryptocurrencies? A cryptocurrency is a form of electronic money that may be invested in or used for transactions that don't need to be verified by a bank or other financial organization. Today there are many examples of Cryptocurrencies like Ethereum, Dogecoin, Ripple, and Binance Coin that gained fame in these years. Cryptocurrencies have even undergone several market crashes and bubbles like in 2011, 2013-14,2017-18, and will go on at its pace.
The Rising Global Acceptance
UPI is getting old! Yes, imagine walking on the streets of a country and paying digitally via digital earnings.
Indeed, it’s still a matter of many controversies and questions majorly about their impact on the economies of the world. As some nations are still cautious and have imposed restrictions, while others have taken progressive steps and embraced cryptocurrencies and their underlying technology. After El Salvador became one such country to accept this as legal tender. Many other countries have followed its trail.
Cryptocurrencies are gradually gaining power in the market has a unique technology named blockchain at its core. As a result of this technology, cryptocurrencies are transparent, secure, and intermediaries are no longer needed. Each transaction is bundled into a "block", which is added to the chain in chronological order, creating an immutable history.
As technology advances and regulatory frameworks mature, cryptocurrencies are likely to become more integrated into mainstream financial systems. In India, Cryptocurrency is subject to tax. The Indian authorities recognized cryptocurrencies in 2022 by reclassifying them as Virtual Digital Assets (VDAs) and introducing a taxation framework for VDAs (aka crypto and NFTs). 30% tax will be applied to any cryptocurrency trading, selling, or spending earnings, and 1% TDS tax will be applied to any sales that exceed RS50,000 (or RS10,000 in some circumstances) in a financial year. When you receive other income in crypto, such as from staking or mining, you may also have to pay Income Tax at your tax rate.
Cryptocurrencies have emerged as a global phenomenon, capturing the attention of tech enthusiasts, investors, and financial institutions. While the acceptance and regulation of cryptocurrencies vary across countries, there is a growing trend toward their adoption. This widespread acceptance reflects the rising awareness of cryptocurrencies' revolutionary potential for the financial future. So, As we navigate this new era, then the question of a cryptocurrency offering a great promise seems answered in a positive sense!
Written By Kratika Agarwal
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