Cryptocurrencies are aren’t an investment as well as they are also not a currency, although investing in them has been in trend by the youth and most of the general public was also involved in the same. Therefore, it is essential to clearly understand about the crypto investments as one is making investments in currency or in asset. Inorder of being a currency, any instrument should have the following features:
• To be a promissory note where an issuer promises the bearer or the holder some value.
• Secondly it has to be supported by sovereign nation and so there is no chance of default in execution of promise.
• Printing of currency in physical or digital form is based on tangible asset as gold or basket of goods.
Therefore, cryptocurrency can’t be a currency as it is clear from the above statements, but can crypto be taken as an asset? As asset is having tangible value, although it’s immediate utility is intangible, asset should be having few of the tangible advantages.
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About Cryptocurrencies Promotion And The Gaming Points
The cryptocurrencies which are being promoted are Litecoin, Ethereum, Bitcoin and these are the gaming points. Promoters of crypto always discuss about the blockchain technology as and when crypto is being discussed. This technology aids in answering for the transactions taken place while trading with crypto and is not actually concerned with crypto. The only concern is with the digital exchange that is being maintained in a format following blockchain. Therefore, the points which are so earned with the aid of gaming application are transferred and stored by way of blockchain technology. Although it may sound awkward, that the points so earned in game of Ludo could be depicted as cryptocurrency if in case they are sold and stored by the blockchain technology by the people who monetise such points. So, it is considered that cryptocurrencies neither have any value nor they could be taken as asset. For gaming points, mining and solving the nth root of an equation are the euphemisms.
Cryptocurrency Fraud
Working with the CBI and the Enforcement Directorate, certain frauds have been seen as multi-marketing schemes, deposit frauds or even the chit funds. Such schemes have been brought up as timeshare schemes, land investments and gold and hefty returns been assured. Such schemes were taken over a long time for avoiding the law. But, fraud could be there still, even the trace of funds could easily be found and the perpetrators could also be found.
Cryptocurrency fraud has taken next level cause of their promoters and promoters having little fear of being traced, cause nobody is assuring anything to anyone. In this, individual or group of individuals tend to release the game or equation from where mining of Bitcoins or cryptocurrency has to be done and secondly, exchanges through which such points- cryptocurrencies are to be traded. Such cryptocurrencies are having acceptability till they are being associated with the normal currency of the country. But it is very disappointing fact that many of the public are driving fast for such fraud round the globe. Criminals, in specific to the drug would incline towards using crypto to take money illegally over span of time and involve in money laundering as well.
The RBI Governor (Shaktikanta Das) to be appreciated for being the first among the heads of central bank for flagging off the issue. The great eagerness of the government in putting up a bill for banning and regulating transactions in cryptocurrency is appreciable. As India is a democratic nation so here both the government and the opposition tend to come together when there are issues of common interest.
Promotional Facts
Current promotions of cryptocurrencies on the print as well as visual media tends to depict their respective promoters undoing. To this, the financial fraud prevention enforcement agencies as the popular ones be CBI and ED try to cure such frauds. Still most of the individuals involved in cryptocurrency would loose their hard earned money by that time. But certain promotional activities as advertisements and other related activities could act as proof for linking people with the fraud. As the news of crypto ban and investigation have become viral, so the supporters of crypto being aware of the upcoming situations have headed towards developing a new jargon i.e. non-fungible tokens or NFTs.
In addition to this crypto frauds also involve the phishing websites which are designed to steal sensitive information from its users and also Ponzi schemes and fake investment plans as Morris coin. Therefore, as India is the highest user of crypto so Indian people are continually fascinated and attracted towards the digital currency, although being aware of it’s high volatility and uncertain legal status, alongwith its unseen risks involved. Also as per the data received from the Chainalysis Pte Ltd. Indian users have since last two years visited most of the websites which run the crypto scams, many a times. Such scams have therefore shown as the matter of concern by the regulators and politicians of the country. This is so, cause as mentioned earlier that people would be saved from loosing their hard earned money with the aid of such an action.
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