Cryptocurrency vs Bitcoin
Cryptocurrency vs Bitcoin
The impact of Web 3.0 on our society is evident as concepts such as Blockchain, Cryptocurrency, Smart Contracts, Non-Fungible Tokens (NFTs) and Digital Assets in the Metaverse become household terms. These concepts have permeated every corner of our civilization, giving rise to various public and legal discourses and creating further fictional distinctions about these concepts. One such discourse that has created a rather strange demarcation in our market is that between cryptocurrency and bitcoin, which can often be confusing even for readers familiar with the crypto paradigm. The CAR’s acceptance of bitcoin over other cryptocurrencies as legal tender created a ripple effect that attracted several non-conventional investors and solidified the distinction between bitcoin and other cryptocurrencies.
The Indian government’s stance on cryptocurrency
The Indian government had taken a neutral stance on the issue, which favored the far-sighted investors in the Indian market as they reaped the benefits of this space, particularly those who invested in Bitcoin in the early stages. People viewed cryptocurrencies as a medium to make a quick buck rather than approaching it like the stock market. Hence, there has never been any real debate about the value of Cryptocurrency vs. Bitcoin in India.
However, after observing the volatile trends in this market, the Indian government made several considerations and decided to impose 30% tax on every cryptocurrency transaction. This government initiative created a mass awareness of the crypto domain in the Indian market and sparked several conversations and debates, one of which was the stability of bitcoin compared to other cryptocurrencies, where unanimous opinion emerged in support of bitcoin, and the others the legality of these currencies. A precursor to a robust regulatory regime, India’s first digital rupee project known as Central Bank Digital Currency (CBDC) (e₹) was already launched by the Reserve Bank India.
future of cryptocurrency
With Bitcoin’s recent crash, the future seems bleak as notions of stability surrounding the currency have lost popularity around the world. This was further compounded by the doubts that have arisen due to inflation, which has severely affected the trading volume of the cryptocurrency overall, leveling the playing field between Bitcoin and the other coins like Ethereum, Solana, and the like. On the other hand, blockchain technologies have already started to impact businesses outside of finance, penetrating healthcare, legal, cybersecurity, insurance, and various other sectors where they are used as a ledger to streamline transactions.
However, the focus of Web 3.0 has shifted from the aforementioned currencies to NFTs and virtual digital assets being sold on Metaverse for a fee, promising the future and already attracting the attention of governments around the world including India, which decided to impose a 30% tax on other digital assets as well. This appears to be token regulation, and with such rapid developments in this space, there is a real need to address the web 3.0 regulatory space for clarity and investor protection.
The views expressed above are the author’s own.
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