New Delhi: Cryptocurrency Once again in the news because the government was reported to see Fine-Tuning revenue definitions and profits for crypto assets in the upcoming budget.
This center has been seeking opinions from senior tax advisors about whether the income obtained from investing in Cryptocurrency can be treated as business income due to capital gains from this year and so on.
But before we enter the taxation and legality of Cryptocurrency, first let’s understand this digital asset and how it works.
What is Cryptocurrency? CryptocurrencyLivea Cryptocurrency is a digital form of currency.
“This is a collection of binary data designed for anonymous and safe.
Cryptocurrency works on cryptographic models where data is converted into code,” explained Gaurav Dahake, CEO & Founder, Bitbns, the leading cryptocurrency exchange in India.
Virtual currency is designed to work as an exchange medium using cryptography to secure transactions and to control the creation of additional currency units.
This is decentralized in nature, which means no single entity has or controlling it.
In addition, it does not depend on the central bank, and is a data set, overall designed to work as an exchange media, using the underlying technology, blockchain.
“This is a peer-to-peer system that allows anyone to create and receive payments from anywhere.
Cryptocurrency payments only exist as a digital entry to an online database that identifies specific transactions, rather than as real money done and exchanged in the real world.
Transactions that you make with Cryptocurrency funds are recorded in public books.
Digital wallets are used to store cryptocurrency, “said Kshitij Purohit, leadership & commodity currency at Capitalvia Global Research.
How big is the Crypto market? In 2025, the Global Cryiptocur Market is expected to be worth $ 2.73 billion.
According to the HDFC report, there are currently more than 8,500 cryptocurrency in the world and increasing with market capitalization of more than $ 2 trillion.
“This is the same as 18% of the total gold holding globally.” “The reason for the cryptocurrency explosion is because it has a fairly low barrier to enter – when something is free and decentralized, it’s easy to replicate and copy,” said Vinay K Mayer, Mitra Marketing & Consultation of Asian Research Partners LLP.
Interesting Facts: The first commercial Bitcoin transaction is buying 2 pizzas for 10,000 Bitcoin in 2010.
Today is worth $ 400 million! There are two types of Crypto assets – coins and tokens.
Coins have their own Blockchain network while tokens are part of the project built on existing blockchains.
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Explained: All You Need to Know About Cryptocurrency
