Title:
CRYPTOCURRENCY AND ITS FUNDAMENTAL ASPECTS

Authors:
Chhavi Tayal

Abstract:
Humans have used commonly commodity currency in the previous era. The more recent is a fiat currency, used around 1000 years ago and today it is the dominant form of money. But it is not the end of monetary history. Cryptocurrency neither a commodity currency nor a fiat currency. It is an experimental kind of money. The experiment on cryptocurrency ultimately may or may not exceed, but it introduces a new mix of monetary and technical characteristics that raises different economic questions as compared to other country's currencies. Bitcoin, the world's most common and known Cryptocurrency. Its popularity increasing day by day. It is having the basic structure when created in 2008 but repeat instances of the world market changing has created a new demand for Cryptocurrencies much greater than its showing.
Cryptocurrency is an encrypted, peer to peer to facilitate digital barter system is a technology developed by Satoshi Nakamato, 8 years ago. Bitcoin is the first and most popular cryptocurrency paving its way as a disruptive technology to long standing and unchanged financial systems that have been in place for many decades. It was published through a mailing address for cryptography and having a similar appearance to an academic paper. While cryptocurrency is not supposed to replace traditional fiat currency. They could only change the way internet connected global markets interact with each other, clearing barriers surrounding normative national currencies and exchange rates. Cryptocurrency may revolutionize digital trade markets by creating a smooth flow of trading system without fees. Bitcoin is not a physical coin that you can keep in reserves or in your wallet. It is a virtual currency, a digital computer code you store in a virtual wallet in cyberspace and have access with computer or smartphone app. Bitcoin is revolutionary as it allows to transfer money person to person very convenient (sending like an email) even across international borders. Bitcoin has become a cultural and financial phenomenon. In short, Bitcoin is a digital currency, or "Cryptocurrency" that allows person to person transactions without depending on the banking system. Bitcoin is not a physical coin that you keep in your wallet. Rather, Bitcoin is a virtual currency - digital computer code that you store in a virtual wallet in cyberspace and can have access with a computer or smartphone app. Some see Bitcoin as a revolutionary because it allows people to transfer money to each other very easily (like sending an email) even across international borders.
By using a cryptocurrency, users can exchange their value digitally, without involving third party insight. Cryptocurrency works on the theory of solving encrypted algorithms to create unique hashes that are fix in number. Combined with a network of computers verifying transactions, users can exchange hashes as if exchanging physical currency. There is a finite number of bitcoins that are generated, prevention and overabundance and ensures its rarity. Water which is a life-giving material, is generally available free of cost because it is so abundant. If water became rare, it would be more valuable than diamonds even. Value exists for bitcoin users because its users have trust that if they accept it as a payment, then they could use it elsewhere to purchase anything they want or need. If users can maintain faith, the valued object can be anything. Bitcoin's value exists in its environment in the same way that wampum, a seashell, was the currency of the land for Native Americans.
The term "Virtual Currency" refers to medium of exchange existing entirely in intangible form that is not a legal tender but can be substituted for each other. A subset of virtual currency is "Cryptocurrency" which implies an internet based virtual currency in which the ownership of a unit of value is validated using cryptography. Its value varies by its volatility in the market. As against commodity-based currencies which derives its intrinsic value through the market the central authority. It is not a legal tender and thus their use requires the agreement among parties for a transaction. E.g. Bitcoin do not have physical presence and their identity is by entries which is done in exhaustive database known as the "Blockchain", which is maintained over a peer- to - peer network.
Bitcoin does not have intrinsic value like Gold in that it cannot be used to make physical objects to be used like jewelry that have value. Nevertheless, value continue to exist due to faith and acceptance.
The nature of the Bitcoin as a disruptive currency, payment system and asset is juxtaposed against the potential of its transactional ledger, the bitcoin is the revolutionary way of recording "digital truth" 'The paper has certain objective such as to analyze cryptocurrency is an economic bubble or not, to analyze cryptocurrency should be legal or not in India, to analyze strengths, weakness, opportunities and threats of the cryptocurrency, to ascertain the benefits and harms on the business class people.
The study of the bitcoin and cryptocurrency is based on the secondary data. The data is based on the various newspapers, magazines, research papers. The study also finds the SWOT of the Bitcoin. In SWOT study we will be able to ascertain strengths, weakness, opportunities and threats of the Bitcoin. The paper brings out the detailed information about the various aspects of the Cryptocurrency such as Why Cryptocurrency is not legal in India.
The main objective of the paper is to analyze the various positive and negative aspects of the Bitcoin which are the important aspect of the digital currency to throw light on these aspects.