As of January 2020, the most Bitcoin-friendly countries where it is legal are:
In a tenure where ”n” number of cryptocurrency exists, the foremost and the pre-eminent digital exchange of virtual currency were bitcoins used by private groups or individuals for digital means of exchange. There had many previous attempts at the creation of online money even though bitcoins were the first paper under the name of cryptocurrency. 1998 to 2009 were the pre bitcoin years. Bit-gold and B money were the two most famous examples of cryptocurrency before bitcoins which were formulated but not fully developed as working cryptocurrency during the tenure.
A cryptocurrency has the fast pace of its manufacturing, can be created at any time. Till August 2018 there are almost 1600 cryptocurrencies in use. The decentralised legal currency used with highest market capitalisation were bitcoins which were released in the year 2009. Following bitcoins in the year 2011, bitcoin founded by Charlie lee was the virtual currency to use the script as a hashing algorithm. Namecoin also acted as an alternative. After 2011 there was a peercoin launched in 2012 to use Pow and Pos functions. The Dogecoin, Gridcoin, Primecoin, Ripple, NXT were the virtual currencies that were launched in the year 2013 and many more after every year that passes by. The currency that was launched in the year 2014 was DASH that was founded by Evan Duffield &Kyle Hagan, Monero launched by Monero core team, NEM invented by UtopianFuture and vertcoin by David Muller.
WHO INVENTED CRYPTOCURRENCY?
Cryptocurrency’s first form bitcoin was originally developed by Satoshi Nakamoto in the year 2009. Being bitcoin, not a corporation, buying bitcoins differs between purchasing it as a stock or bond. Conflictingly the following factors influenced the prices of bitcoin.
Supply and Demand
The supply was impacted in two different ways on bitcoins. Initially, the bitcoin treaty allows to create or fix the rates of bitcoins. The pace of introduction of new bitcoins was very slow which created the situation of an increase in demand at a faster pace than the supply of bitcoins to market that also resulted in the rise in the price of bitcoins.
Secondly, the supply was also impacted by the already existing bitcoins in the market. The popularity of other cryptocurrencies also determined the price of bitcoins that whether it is considered practical, legal and in demand or not.
Even though bitcoins were the initial and most famous cryptocurrency, there were hundreds of other tokens in the battle to gain all user’s attention. For market capitalization, while bitcoin remains the dominant option other alternative coins came up with strong competition among themselves. The field was crowded for investors that converted into a piece of good news for them as crowed made the competition go widespread which also cause to maintain an average price for all virtual currency. Happily, for bitcoins, its strong power in visibility gave it a corner over its competitors.
Cost of Production
While the bitcoins are named under the virtual currencies, they are nevertheless a product produced and sustain a real cost of production. Bitcoin’s unique production feature is that unlike those of other producer’s good bitcoin’s algorithm on an average allows only one block of bitcoin to be found. That simply means the more of producers join the competition will face the effect and difficulty in that situation.
Supreme Court has allowed trade on cryptocurrency which has ultimately led to a quash in RBI’s ban on the use of cryptocurrency. On Wednesday 4th of March 2020, the Supreme Court has passed an order for the release of cryptocurrency for trading. Almost after two years of hearing the case, the Supreme Court has finally ruled over the case against the banking ban by the RBI over the trading of the virtual currency over the digital platform. At 10:45 am there was a tweet by the crypto kanoon that the supreme court of India has finally struck off-reserve bank of India [RBI] banking ban against the crypto.RBI has earlier circulated the notice of the supreme court that cautioned users, holders and traders of virtual currencies including bitcoins regarding the various risk included in transferring or regulating these virtual currencies over the country. The RBI could not deny them access to the channels in banking to carry forward such kind of business in the state.
The central bank raised in favour of the Supreme Court it’s 2018 circular sticking to one’s gun that it had always been consistent in its opposition to allowing any other transfer systems and erode the uprightness of the banking system. It has argued a lot that though there was not any form of formal ban on cryptocurrencies under any law in existence in India, they have been continuously warning all those dealing with virtual currencies of the risks involved in them. Now the reserve bank of India is now to file a case against the quashing of the central bank curbing the cryptocurrency. Several cryptocurrency platforms had now transferred their base to Singapore and different country after the RBI has circulated the issued in April, 2018, are now deciding to move back to India. This also means that banks will allow their customers to link all their bank accounts to platforms in cryptocurrency and also facilitating the trading procedure. The circular mentioned that it has obstructed all the financial entities which were regulated by the reserve bank of India from entering into any payment or kind of transaction that involved the interruption of cryptocurrency.
In 2018, the Indian government and the reserve bank of India have issued few warnings against dealing with cryptocurrencies such as bitcoin. The RBI had already notified all the users of virtual currencies or the cryptocurrencies about potential economic and financial risks and declared it that it had not issued any license in the company in this native area. It ultimately resulted in banning access by cryptocurrency services to the banking system. The cryptocurrency platforms had also come under the leg trap of the income tax department over the state, which had issued alert notices to more than 5,00,000 investors, asking whether they had reimbursed taxes on rising in valuations after a sweep in prices. Apart from that, the indirect tax department had also forwarded alert notices to the platforms and seek the explanations on whether they were treating cryptocurrencies as the supply of goods or services and if they were paying goods on GST.
All as a conclusion on Wednesday 4th march 2020 an order passed by the supreme court in India in favour of cryptocurrency to be in a trade that has scrubbed banking ban of reserve bank of India. As already known that there is a huge volatility rate of exchange of virtual or cryptocurrencies, which has also increased the rate of trading with cryptocurrency as they are easily portable. Individuals are getting more choices and options to decide and manage for their finance which has led the growth of cryptocurrency to gain more attention by speculators.