In the first case, we must understand what Cryptocurrency is? How does it work? Is it dangerous? Cryptocurrency is a digital asset designed to work as medium of exchange. It uses cryptography to secure its transactions, and to create the prevention of additional units that are used to verify the transfer of assets. BVH Prasad explains that all cryptocurrencies use Block chain which is a digitized, decentralized wallet. Constantly growing, it records the most recent transactions added to it in the chronological order.The first decentralized Cryptocurrency was Bitcoin created in 2009.
It looks like a safe affair to invest in cryptocurrency and especially, Bitcoins. As its price has been more stable than ever before. Currently priced above $15,000. In the last 1.5 years it has shown stability as compared to other financial instruments. Moreover, the value of Bitcoin is neither correralted to the stock nor to any national currencies. Making it a great source to generate volumes of money.
Yet, there is still some disbelief that it was created out of thin air and would not stay for long.Its actual purpose was to serve as an instrument used to buy goods and not to replace currency.
BVH Prasad a cryptocurrency analyst, views it safe to use them only upto an extent. He believes that the growing popularity of cryptocurrency, especially Bitcion is only because of the growing trend to go virtual. Moreover, people like technology because of its non- trace ability, making it easier for them to do transactions in the dark web. We must understand that unlike in the Indian Stock Exchange market, where we have Securities Exchange Board of India (SEBI) to control all the fraudulent activities. We do not have any board who can control any such activities.
He finds that the following conditions are considerable only because of the way cryptocurrency works. Yet, we should not rely too much on any technology, because it may have flaws:
Furthermore, it might still be very early to predict the future trends. The virtual currency may see rise, with its ever growing demand but people must understand the flaws associated with it to invest safely in such a financial schemes.