While demonetization was a big bold move, it certainly created a crisis for most people. People had money but suddenly did not have the means to carry out a transaction, since they did not have cash. It’s worth asking; if people didn’t have access to a currency why couldn’t they just create a currency of their own? That may sound silly, but any currency is ultimately based on trust.
As it happens, people designing and adopting a currency on their own has been done. Infact a secure, fraud and corruption proof currency, powered by software technologies is already in circulation under the name ‘Bitcoin.’ In India we haven’t heard about this too much but this cryptocurrency has seen widespread adoption internationally.
Bitcoin is a currency introduced in 2008, where transactions take place directly between users, without any intermediary. Let us look a few prominent features of this cryptocurrency:
● Privacy Offered. The transactions done via bitcoins are completely anonymous. Basically, If Rahul needs to transact with Aparna, then they do so directly using Bitcoins as currency, without any banks or third parties involved.
● Reduced Fraud. The transactions made are verified by a node network and recorded in a public ledger called Blockchain. This is a powerful bit of technology. With blockchain, basically a bitcoin carries a train of previous transactions. Thus reducing the chance of fraud significantly.
● Value. There can always be only a finite number of bitcoins. That is how the system was set up. This finite number ensures that its value remains intact.
● Ease of use. To start using bitcoin, all you need to do is install a bitcoin wallet installed on your phone. Then you can start accepting and making payments using bitcoin.
And if you have lots of bitcoins you can trade them for the Indian Rupee, the US Dollar, or almost any other national currency. So how much is a bitcoin worth? Today 1 bitcoin is valued around Rs 66, 000!
Brian is an experienced journalist and crypto enthusiast. Founder of CryptoCurry – famed for his insightful input on the future of cryptocurrencies and blockchain technologies.