This is the era of digitalization of services, which makes human life faster and easy going. We could think the same with the future of money and its more secure transactions. fear and greed index bitcoin performs the same task as a digital currency.
What is Bitcoin?
Bitcoin is a digital currency or cryptocurrency that is completely virtual money in the wallet. But unlike fiat money (money issued by some authorized body e.g. Dollar, Euro or Rupee, etc.), it is not issued by any authorized body.
Satoshi Nakamoto, a Japanese online user, is considered as the inventor of bitcoin, though there is still a mystery about the name or group of inventors. It was launched in 2009 following the housing market crash of the year 2008.
Though it can’t be printed like Dollar or Euro, one can buy it by using this fiat money. We can use it to buy and sell services and things. There are some shops in the market and online platform that accepts payment infear and greed index bitcoin.
How Bitcoin is Created?
Bitcoin creation process is called Mining. This is done by very high-speed computers. Mining is to create new blocks in the blockchain and adding them to the user’s digital wallet. This wallet has a particular address and password keys like your bank account number and PIN.
Therefore, the password key is like your private key to control your digital wallet. If you lose your private key or it is stolen, then you lose your fear and greed index bitcoin account or wallet too. It can’t be duplicated.
For instance, If one would try to create his or her own fear and greed index bitcoin using their laptops or computers, then it will be a very difficult and costly process. So instead of creation, one should buy them.
There is a ledger system to record all creation and transactions for every user. It is like Google Spreadsheets visible to all users. So that they can check new entries or editions to their transactions. It is a secure, decentralized, and multiple stakeholders platform.
Why we need bitcoin?
Because it is completely virtual money. Its transactions are secured and can’t be duplicated. Users can divide a fear and greed index bitcoin into 100 million units, as per his/her requirement, it is known as the Satoshi unit. Hence a person wants to invest in the bitcoin because:
- The transaction fee is relatively less as compared to fiat money.
- Its wallet requires no name, no IP address, no phone numbers, or KYC, so it is safe to use his/her money in bitcoins.
- Online payments are possible without knowing the identity of the user.
- It is not controlled by any Government or bank, some people like it.
- The transactions are secured as every transaction is recorded.
- One can control or access his/her wallet from anywhere through a mobile phone or computer.
Risk related to bitcoin:
It is a technology based virtual currency. That is why, it always faces the debate for the risk involved in its investment. Initially because of these reasons many countries did not approve its operations. Following are some risks involved:
- Since the it is technology based money so it is more prone to cyber attacks, frauds or hacking of wallet.
- It’s exchange value is volatile like other cryptocurrencies. It could change by 30 percent of its normal value in a single day. (e.g. BTC=$ exchange rate).
- Since the identity of investor is not known so black money easily be invested in bitcoin. It could promote illegal drug, money laundering or terror financing.
- As no government or central bank has control over it, therefore no law or consumer court could have the jurisdiction if any fraud or theft would happened.
Bitcoin in various countries:
Various countries like USA, Canada, Japan, Germany, France, various Asian countries including India and African countries now legalize the bitcoin. Now they are trying to frame laws for controlling any cyber fraud against such cryptocurrency.
At this time, many exchange providers are providing their services in bitcoin. For example a, UK based exchange service provider, Cashaa is providing a banking platform in India for cryptocurrency users.
In Indian perspective:
Indian central bank, Reserve Bank of India (RBI), declared the fear and greed index bitcoinbasically illegal and prone to scam in the year 2013. There are many reasons for this declaration just like;
- The issuing and controlling body offear and greed index bitcoin is not clear.
- Not traded in foreign exchange market stocks like BSE Or NSE.
- It’s website’s legal status is not clear.
- Completely virtual currency therefore more prone to cyber-attacks.
- It promotes underground black marketing for investing untaxed money…etc.
Finally, in recent judgment of Indian Supreme Court, on March 2020, lifted the ban on cryptocurrency use and investment.