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    Insights Mind Maps: Future of Bitcoins

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    arvidkumar87060
    The document discusses the future of bitcoins. It notes that bitcoins allow for transactions without banks or governments by using cryptography. While this provides advantages like anonymity and decentralization, it also enables money laundering and tax evasion. There are also risks of hacking and price volatility. Some countries are working to create government-backed cryptocurrencies, while others like India are considering regulating private cryptocurrencies and imposing taxes on capital gains from them. Overall the future of bitcoins remains uncertain, as more regulation is still needed to balance their advantages with the risks they pose.

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    Download as PDF, TXT or read online from Scribd

    Insights Mind Maps: Future of Bitcoins

    Uploaded by

    arvidkumar87060
    50 views2 pages
    The document discusses the future of bitcoins. It notes that bitcoins allow for transactions without banks or governments by using cryptography. While this provides advantages like anonymity and decentralization, it also enables money laundering and tax evasion. There are also risks of hacking and price volatility. Some countries are working to create government-backed cryptocurrencies, while others like India are considering regulating private cryptocurrencies and imposing taxes on capital gains from them. Overall the future of bitcoins remains uncertain, as more regulation is still needed to balance their advantages with the risks they pose.

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    Financial and economic issue for IAS aspirant

    Original Title

    Future of Bitcoins

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    The document discusses the future of bitcoins. It notes that bitcoins allow for transactions without banks or governments by using cryptography. While this provides advantages like anonymity and decentralization, it also enables money laundering and tax evasion. There are also risks of hacking and price volatility. Some countries are working to create government-backed cryptocurrencies, while others like India are considering regulating private cryptocurrencies and imposing taxes on capital gains from them. Overall the future of bitcoins remains uncertain, as more regulation is still needed to balance their advantages with the risks they pose.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    50 views2 pages

    Insights Mind Maps: Future of Bitcoins

    Uploaded by

    arvidkumar87060
    The document discusses the future of bitcoins. It notes that bitcoins allow for transactions without banks or governments by using cryptography. While this provides advantages like anonymity and decentralization, it also enables money laundering and tax evasion. There are also risks of hacking and price volatility. Some countries are working to create government-backed cryptocurrencies, while others like India are considering regulating private cryptocurrencies and imposing taxes on capital gains from them. Overall the future of bitcoins remains uncertain, as more regulation is still needed to balance their advantages with the risks they pose.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Insights Mind maps

    General Studies-3; Topic: Science and Technology- developments and their applications
    and effects in everyday life

    Future of Bitcoins
    1) Introduction
     Bitcoin, the world's most popular virtual currency, allows people to buy goods and services and
    exchange money without involving banks or government.
     Bitcoins are basically lines of computer code that are digitally signed each time they travel from one
    owner to the next.
     Transactions can be made anonymously, making the currency popular with libertarians, tech
    enthusiasts, speculators and criminals.
     The value of one bitcoin touched a record high of $11,434 which has grown approximately 880 per
    cent since January this year.

    2) What's promoting Bitcoins


     Bitcoin uses cryptography to securely conduct a transaction between a sender and a recipient.
     It is almost impossible to make duplicate copies of Bitcoin, or use it for more than one transaction
    at a time.
     It is possible to send and receive any amount of money almost instantly anywhere in the world at
    any time
     Bitcoin’s attraction is that it frees their money from the actions of government.
     In countries where inflation is high as a consequence of government policies, Bitcoin allows
    individuals to insulate themselves.
     Helps start-ups to raise funds through Bitcoins
     It is immune to control by a government or other any kind of central authority.
     Bitcoin makes payments fast and inexpensive.
     Other cryptocurrencies that are in play apart from Bitcoins are Ethereum, Litecoin, Dash and Ripple.

    3) Potential Risks
     It is a useful tool for money laundering and tax evasion.
     Law enforcement agencies across the world are concerned over the use of Bitcoin, and other
    cryptocurrencies for crime.
     They enable transnational criminal organisations to easily transfer funds which are difficult to track.
     FOR INCOME-TAX authorities around the world, cryptocurrencies are posing a major challenge.
     There are reports of hacking threats from criminals seeking money in Bitcoin.
     Online drug trade is estimated at $100 million worth of cryptocurrency each year.
     In the last couple of years, there have been multiple incidences of fake cryptocurrencies.

    4) Disadvantages
     Still its popularity is low compared with cash and cards, and many individuals and businesses won't
    accept bitcoins for payments.
     Not being backed by any government entity is Bitcoin’s biggest disadvantage
     It will render monetary policy and government policies ineffective
     The central bank will lose its control over the medium of exchange in the country.

    www.insightsonindia.com Page 1 www.insightsias.com


    Insights Mind maps

    5) International Practice
     Some see it as the future of money, and countries like Russia, Sweden and Lebanon are working to
    create officially-backed versions.
     Nepal, Bangladesh, Kyrgyzstan have declared Bitcoins as illegal payments and in violation of the
    state law.

    6) Bitcoins in India
     In India there are no clear regulations governing Bitcoins
     Indians appear to be following the global cryptocurrency boom because of the profits, loss of faith
    in cash, as well as the flatlining of property and gold prices
     Niti Ayog has been asked to study the possibility of issuing government-backed and regulated
    cryptocurrency
     High demand for bitcoin in India has driven its price far higher than global rates
     In India crypto-currency is gaining popularity, primarily as a financial asset.
     India has retained its position as a top receiver of bitcoin-related remittances worldwide, as per a
    World Bank report.

    7) Way Forward
     Need to engage with authorities and regulators to generate awareness about Bitcoins
     Investors must spend time educating themselves about bitcoin and the technology behind it.
     In many western countries, Bitcoins are treated as property and capital gains tax is imposed on it.
    India should also treat it as property and impose capital gains tax.
     Implementing strict KYC norms and eliminating secrecy of transactions.
     Bring their trading under the oversight of SEBI
     A more realistic scenario in future could be using both bitcoins and fiat money side by side, with
    bitcoins used to pay to those who can accept it, and fiat money used to pay for basic goods and
    services.

    www.insightsonindia.com Page 2 www.insightsias.com

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