Abhishek Bacchan has invested on cryptocurrency in 2015 in a Singapore firm , Meridian Tech Pte to the tune of $ 2,50,000 . Its value increased sharply to $ 17.5 million in 2017 . This resulted to encourage and convince Indian youth by promoting and popularising the argument that investment in cryptocurrency is shortest route to earn more income and easy way to face the challenge of inflation so as to lead luxurious lives . Consequently , the first exchange related to cryptocurrency came into existence in 2017 only . Now , many exchanges are present like Coin Switch Kuber , Coin DCX , Wazir X , Zedpay . Interestingly , Amitab Bacchan is the Brand Ambassador for Coin DCX .
Initially , the promoters expected that its demand will confine to Metro-politan cities but shortly it has spread to Tier 2 and 3 cities . Now , it is present in as many as 4000 cities and the average age of these investors is 25 years .
The report of Broker Portal , Broker Chooser released in October 2021 states that India stands first in the world with 10 crore of investors in cryptocurrency while US place is second with 2.74 crore investors .
India do not have a firm stand on cryptocurrency since beginning . The Reserve Bank of India banned it in 2018 while Supreme Court abolished the ban in 2020 . However , the growth in the activities related to crypto currency did not stop during this period . The abolition of ban resulted in its accelerated growth . High volatility of its price did not stop its expansion . Despite they know that it is a ‘ big Gambling ’, they prefer to make investment in it on the assumption that “ wise and sensible will not lose ”. The concept of “ earning more money quickly is a hefty weakness ”. However , this greed strongly implanted in the minds of youth . Therefore , they are intolerant at least to listen that cryptocurrency is fake . Consequently , the users in Crypto Exchange , Coin Switch Kuber is as high as 11 millions which is higher than the largest stock
January - 2022 broker , Zerodha which consists of 7 million users . Further , the investment in cryptocurrency in India is more than $ 40 billion .
Broker Choose laments that despite the absence of legal protection , the user basis of cryptocurrency is rising at an alarming rate in India .
Recently , Coin Switch Kuber blocked as many as one 80,000 accounts and Wazir X , 14,469 accounts owing to the complaints from US , UK , Switzerland , Germany and Austria . A probe is initiated on Wazir X as it is violated FEMA in the transactions of Rs . 2700 crores .
In India , a high level interministerial committee is constituted in November 2017 to study the issues related to virtual currencies and propose actions to be taken . The Committee submitted its report on February 28 , 2019 in which it has recommended that 1 ). A Bill should be introduced in Parliament to ban cryptocurrency and ( 2 ) To constitute a high level committee to examine the development of digital currency to be issued by RBI .
Dr . Pavan Duggal a senior advocate of Supreme Court and Cyber law expert states that cryptocurrency is harmful to the people as well as to the economy . Its advertisements in IPL 2020 , ICC Men ’ s T20 , World Cup Cricket to attract and misdirect the youth , should be banned , he says .
It is to be noted that NASSCOM oppose the ban on cryptocurrency . Moreover , the statement of our Finance Minister Nirmala Seetharaman , indicates that the bill to be introduced in Parliament in relation to cryptocurrency will not incorporate ban on cryptocurrency . The experts are estimating that the proposed bill will recognise crypto assets as investment and therefore , impose capital gain tax on it . All this clearly indicates that the cryptocurrency will grow at an accelerated speed .
Cryptocurrency - Impact on Environment
The activities of cryptocurrency related to its mining and proof of work consume large quantity of electricity and release huge amount of carbon footprint . Thus , its creation is costly and harmful to the environment . Therefore , it is ridiculous to state that its creation is cheap . The lone Bitcoin mining in 2017 consume electricity as high as 943 MW . The making of proof of work block chains of Bitcoin , Ethereum , Litecoin and Monero during January 2016 to June 2017 released carbon dioxide emissions to the tune of 3 to 15 million tonnes . It is estimated in September 2021 that the annual electronic waste emissions of Bitcoin alone is 30.7 metric kilo tons and its carbon footprint waste emissions is 95.90 MT . Moreover , the annual electricity consumption of Bitcoin alone is 201.89 Twh . Thus , the expansion of crypto currency will leave no electricity for any other purposes . Moreover , it is highly dangerous to the environment and to the issue of climate change . Towards Corporatization Cryptocurrency is the symbol of Gambling . In October 2021 ACX exchange in Australia collapsed suddenly stating that it lost cryptocurrency worth $ 50 million . Similarly , another exchange Mycrypto walletwhose transactions are worth hundreds of thousands of US dollars , suddenly declared bankruptcy . On the other , it is also proved that cryptocurrency is the best financial tooll for Hawala , criminal and illegal activities . The process of reinforcing imperialist loot and exploitation in the movement of monopoly capitalism naturally strengthens criminalised world is the contemporary reality . They strengthens one another . They live together . But , contrastingly popularise that all this is only for the benefit of common people . The Indian youth who are caught in this distorted vicious circle , always opines that in the gambling of cryptocurrency , intelligent people will not lose . What is the role of individual investor ’ s intelligence in the sudden declaration of Bankruptcy by the Crypto exchanges ?
The cryptocurrency in India is a strong tool of dominant forces to
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