Crypto Currency

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Overview:

According to a working research paper published in the Bank for International Settlements, over 73% crypto currency users lost money.

About Crypto Currency:

  • After the U.S. and Turkey, India has the third highest number of registered downloads of crypto exchange apps.
  • As of June 2022, there were over 30 million crypto exchange app downloads in India.
  • But in terms of downloads per capita, India features among the countries with the lowest number of downloads.
  • This is because of its vast population and crypto awareness being mostly limited to urban pockets.
  • Countries such as the U.S., Canada, Australia and the U.K. rank much higher in terms of per capita downloads.
  • India also features among those countries with the lowest average monthly app usage per 1 lakh people.
  • According to the study 73%-81% of the users would have lost money. A median investor would have lost $431, corresponding to 48% of the total $900 invested.

Cryptocurrency:

  • Cryptocurrencies are digital or virtual currencies in which encryption techniques are used to regulate the generation of their units and verify the transfer of funds.
  • These currencies operate independently of a central bank.
  • The economic transactions underlying cryptocurrency are decentralized, distributed and disbursed.
  • The first and most famous cryptocurrency, bitcoin was introduced in 2009.

Technology:

  • Most cryptocurrencies of the world are built on blockchain technology.
  • Blockchain is a decentralized and distributed database on a peer-peer network which works on the basis of a consensus mechanism involving every node (computer) on the network.
  • Blockchain is a peer-to-peer distributed network that records a public history of transactions without actually recording identities of the parties or the transaction details.

 


Source : The Hindu