{"id":160100,"date":"2022-01-09T16:50:57","date_gmt":"2022-01-09T11:20:57","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=160100"},"modified":"2022-01-10T17:49:10","modified_gmt":"2022-01-10T12:19:10","slug":"answered-what-is-cryptocurrency-how-does-it-affect-global-society-has-it-been-affecting-indian-society-also","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-what-is-cryptocurrency-how-does-it-affect-global-society-has-it-been-affecting-indian-society-also\/","title":{"rendered":"[Answered] What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?"},"content":{"rendered":"

A cryptocurrency or crypto is a\u202f<\/span>virtual currency<\/span><\/b>\u202fsecured by cryptography. It is designed to work as a medium of exchange, where individual ownership records are stored in a computerised database. The cryptocurrency works on<\/span>\u202fblockchain technology<\/span><\/b>\u202fand is free from control of government agencies.\u202f<\/span>\u00a0<\/span><\/p>\n

Cryptocurrency is a new emerging technology which is\u202f<\/span>revolutionizing the way people make monetary transactions<\/span><\/b>. Crypto has affected global society in both positive and negative way as discussed below:\u202f\u202f<\/span>\u00a0<\/span><\/p>\n

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  1. Increasing usage of Cryptocurrency is\u202f<\/span>economically integrating<\/span><\/b>\u202fthe global society. Currently, the world is divided in terms of different currencies. Crypto bypasses this division and is increasingly becoming a sought-after way of transacting.\u202f<\/span>\u00a0<\/span><\/li>\n
  2. Cryptocurrencies\u202f<\/span>take away the sovereign power of issuing currency<\/span><\/b>.\u202fThus,\u202fmaking economic policy ineffective and\u202f<\/span>diluting the bond between citizen and government<\/span><\/b>.\u202f\u202f<\/span>\u00a0<\/span><\/li>\n
  3. The transactions in crypto are\u202f<\/span>cheap and faster<\/span><\/b>. Thus, it makes capital more mobile\/volatile posing risk to macroeconomic stability and consequent social consequences.\u202f<\/span>\u00a0<\/span><\/li>\n
  4. Cryptocurrency has emerged as\u202f<\/span>a new asset class<\/span><\/b>\u202f(alternative of gold). However, fluctuation in the value of cryptocurrency has made both kings and beggars.\u202f\u202f<\/span>\u00a0<\/span><\/li>\n
  5. Crypto is used by\u202f<\/span>terrorist organization, drug cartels<\/span><\/b>\u202fto smuggle contrabands which negatively impacts society at large.\u202f<\/span>Anonymity\u202f<\/span><\/b>in cryptocurrency has potential to\u202f<\/span>increase crime<\/span><\/b>\u202fin society.\u202f<\/span>\u00a0<\/span><\/li>\n
  6. With increasing acceptance of crypto, people who are<\/span>\u202fdigitally illiterate are being left behind<\/span><\/b>. Thus, it can lead to a disproportionate rise in inequality.\u202f<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Effect of Crypto on Indian Society<\/span><\/b>\u202f<\/span>\u00a0<\/span><\/p>\n

    Crypto is still in a\u202f<\/span>nascent phase<\/span><\/b>\u202fin India, with a huge uncertainty about its future. As RBI initially banned crypto\u202ftrading\u202fin 2018, which was reversed by the Supreme court later. The following are the effect of crypto on Indian society\u202f<\/span>\u00a0<\/span><\/p>\n

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    1. With the rise of cryptocurrency, a\u202f<\/span>new\u202fcrypto community<\/span><\/b>\u202fhas emerged \u2013 that includes amateur investors, professionals\u202fand jobs have come up in the society. Example: Multiple crypto-exchanges have come up.\u202f\u202f<\/span>\u00a0<\/span><\/li>\n
    2. India is the largest receiver of<\/span>\u202fremittances<\/span><\/b>. However, the people lose money on conversion, processing charges, and\u202f<\/span>switching to crypto will help people<\/span><\/b>\u202fto get rid of these expenses.\u202f<\/span>\u00a0<\/span><\/li>\n
    3. As an asset, cryptocurrency has offered huge returns in the past, so it has become a\u202f<\/span>fad among Indian youth to invest<\/span><\/b>\u202fin these volatile assets,\u202f<\/span>overlooking the risk<\/span><\/b>\u202fassociated with it.\u202f\u202f<\/span>\u00a0<\/span><\/li>\n
    4. India became victim to ransomware attacks like\u202f<\/span>Wannacry<\/span><\/b>\u202fetc. and the ransom was collected in crypto-> may promote culture of digital extortion.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

      To make\u202f<\/span>use of the revolutionary potential of underlying technology<\/span><\/b>\u202fbehind the cryptocurrency, while avoiding its negative consequences, a proper\u202f<\/span>regulatory framework\u202f<\/span><\/b>is required.\u202f<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      A cryptocurrency or crypto is a\u202fvirtual currency\u202fsecured by cryptography. It is designed to work as a medium of exchange, where individual ownership records are stored in a computerised database. The cryptocurrency works on\u202fblockchain technology\u202fand is free from control of government agencies.\u202f\u00a0 Cryptocurrency is a new emerging technology which is\u202frevolutionizing the way people make monetary transactions.… Continue reading [Answered] What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[10606],"class_list":["post-160100","post","type-post","status-publish","format-standard","hentry","category-public","tag-mains-2021-gs-1-solutions","entry"],"jetpack_featured_media_url":"","views":{"total":60,"cached_at":1698385487,"cached_date":1698426256},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=160100"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160100\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=160100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=160100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=160100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}