Without a question, digital currency is the way of the future. Slowly but definitely cryptocurrency will take over Rupee and Dollar by the end of this decade. Paper money will become obsolete and people will store money on their mobile phones. Cryptocurrency will take over Rupee and Dollar or paper money but it will very certainly continue to be a part of our life in the future, whether in the shape of money, investment choices, commodities, assets, or some other form.
A cryptocurrency is a digital currency that is protected by cryptography, making counterfeiting and double-spending almost impossible. Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a global network of computers. Bitcoin is a decentralized digital currency that may be transmitted from user to user on peer-to-peer Technology without the use of middlemen. It has no central bank or single administrator. So, we can say that Bitcoin is the most well-known cryptocurrency, for which blockchain technology was developed.
As cryptocurrencies have grown in popularity, IT executives have been more interested in learning more about them. In general, there are two groups: one believes that all virtual currencies are a hoax that can burst at any time, and the other believes that they are all scams. The second group believes that it has a promising future and will soon replace real money. At this point, it is unclear who is correct and how these technologies will develop in the future. There is, however, little dispute regarding the underlying technology, which is blockchain. Cryptocurrencies are unquestionably growing in popularity as a result of their exponential returns in a short period of time
Different nations’ governments may or may not allow that cryptocurrency will take over Rupee and Dollar. Several countries have already enacted prohibitions and limitations, restricting Cryptocurrency trading. Over 7 million people in India have already invested over USD 1 billion in cryptocurrencies. This number is steadily rising, as the government has chosen to reconsider its prior position of banning all cryptocurrencies outright. The government has announced the creation of a new bill, Cryptocurrency, and Regulation of Official Digital Currency Bill.
This might be the first step toward cryptocurrency legalization in India. The Reserve Bank of India is also developing digital money. “The time has come to leverage its applications while at the same time strengthening the digital infrastructure,” RBI governor Shaktikanta Das said. As a result, the day will come when we must deal with digital currencies on a regular basis.
Every economy is based on the government’s ability to manage its currency. In reaction to external and internal forces, the government can decide how much of a currency should be produced. If cryptocurrencies take the place of the rupee or the dollar, that power is lost.
It is a little bit difficult that Cryptocurrency will take over Rupee and dollar completely, or any other kind of paper money. It is more feasible to co-exist with paper money and cryptocurrency, which is why rules become more necessary. Cryptocurrencies are now sensitive to responses from big investors, participants, stakeholders, observers, and even government decisions. It will be protected against all of this by a regulatory framework.
Apart from cryptocurrency’s appealing features such as low transaction fees, fast transaction times, expanded payment options, simple currency exchange, and decentralized architecture, it also has some drawbacks that must be addressed before cryptos, can be legalized, such as price volatility, anonymity, cybersecurity, environmental impact and the lack of a refund or cancellation mechanism. Bitcoin has risen 193,639.36 % since 2012, despite all of these certainties and uncertainties. The user index for 2021, according to Binance Research, has 97 percent confidence in cryptocurrency.