Between crickets on the TV, hand-held smartphones regularly show advertisements for cryptocurrencies such as Bitcoin or digital currency transactions. Search for matching exchanges, where you can trade this digital currency; Which is causing many people to worry. The question is raised, how safe is this currency that is not recognized by the government of most countries. Because, because there is no recognition, the government has no hand in its control system. Digital currencies like bitcoin, ethereum, matic are becoming popular as new and alternative fields among the young generation due to huge profits. There is no legality to transact in Bangladesh. In India in 2018, its transactions were declared illegal by the country’s Reserve Cryptocurrency: Anarchy, Not the new surprise of capitalism? Banks. But in the case against this order, the Supreme Court of India said that the order was illegal. So there is no scope to call that currency illegal in India. The purchase and sale of goods with digital currency has been recognized in various countries including America. Since there is no government intervention in digital currency transactions and there are no income tax laws on these transactions (i.e. no tax is payable on its income), various exchanges are promoting it through various channels.
China has recently banned all types of cryptocurrencies in its country. On the other hand, the Bitcoin ETF has been released on the New York Stock Exchange of America. The price of Bitcoin fluctuates very quickly. In 2018, the price of each bitcoin was 16 thousand dollars, in 2019, the price of the same bitcoin stood at 3 thousand 333 dollars. Currently, the price of each Bitcoin is hovering around $63,000. In Bitcoin transactions, the identity of the transaction is not known. Instead, the code is created using blockchain technology. Its shopping is done on computers, smartphones and tablets. Bitcoins are bought through digital wallets at certain Bitcoin exchanges, where they are stored. Wallet contains ID and password, What is used has to be opened. In order to sell that coin, the buyer has to give the digital key (ID and password) to the seller. Bitcoin has no regulatory body. So if you lose money by investing in it, you cannot complain to anyone.
Over the past few years, interest in virtual currencies like Bitcoin has started to grow. The control of this currency supply is in the hands of people with knowledge of mathematics and computer science and related talent. Many economists think the idea is not bad. This will increase the supply of cash in the market. They think that people will buy more things when they have extra money. It will benefit everyone from unsold goods and unemployed people. If the demand in the market increases, the production of the goods that can be increased quickly will increase, thereby reducing the price increase. Where that is not possible, prices will increase. But the economy as a whole will begin to turn. Another group of economists thinks just the opposite. They think that when a country’s finances are in danger, by lowering interest rates, The government of all countries has to do the work of strengthening the financial system by increasing the supply of money. If crypto-currencies become legal tender and people’s faith in the country’s currency declines over time, the medicine to boost the money supply will weaken. The government has a special role in the welfare activities of the government, providing relief to the people in the crisis situation of the country, driving the economy of the country in the right direction. If a currency outside of that country’s sovereign boundaries is important to a country’s financial system, that country’s independent monetary policy can be undermined. On the other hand, it is difficult to fix the exchange rate between the country’s currency and crypto currency. If the supply of crypto currency increases or decreases or changes in international demand, its price will also change in proportion to the money. Then the medicine of strengthening the financial system by increasing the money supply will weaken. The government has a special role in the welfare activities of the government, providing relief to the people in the crisis situation of the country, driving the economy of the country in the right direction. If a currency outside of that country’s sovereign boundaries is important to a country’s financial system, that country’s independent monetary policy can be undermined. On the other hand, it is difficult to fix the exchange rate between the country’s currency and crypto currency. If the supply of crypto currency increases or decreases or changes in international demand, its price will also change in proportion to the money. Then the medicine of strengthening the financial system by increasing the money supply will weaken. The government has a special role in the welfare activities of the government, providing relief to the people in the crisis situation of the country, driving the economy of the country in the right direction. If a currency outside of that country’s sovereign boundaries is important to a country’s financial system, that country’s independent monetary policy can be undermined. On the other hand, it is difficult to fix the exchange rate between the country’s currency and crypto currency. If the supply of crypto currency increases or decreases or changes in international demand, its price will also change in proportion to the money. That country’s independent fiscal policy may be disrupted. On the other hand, it is difficult to fix the exchange rate between the country’s currency and crypto currency. If the supply of crypto currency increases or decreases or changes in international demand, its price will also change in proportion to the money. That country’s independent fiscal policy may be disrupted. On the other hand, it is difficult to fix the exchange rate between the country’s currency and crypto currency. If the supply of crypto currency increases or decreases or changes in international demand, its price will also change in proportion to the money.
The rate of growth of crypto currency supply is mathematically self-regulating until now. The problem is, if a minority in the future axed the majority of cryptocurrencies, and if cryptocurrencies became popular among people through exchanges, the world’s financial system would become dependent on that minority. It seems impractical, but it is very difficult to impose any kind of tax on a multi-billion dollar business. Some think that Bitcoin’s sixteen annas are a hoax. Bill Gates thinks so too. This is what Bill Gates said when he came to the Berkeley Tech Summit in California. On the other hand, celebrities like Elon Musk, Kim Kardashian have promoted cryptocurrency.
Proponents of cryptocurrencies believe that cryptocurrencies are essentially related to economic transactions. They explain it like this—suppose you work hard. That hard work is physical or intellectual. And you earn in return for that hard work. Income means money. That is, your income and labor are interrelated. This is the equation. Now you spend income ie money to fulfill your needs. First the basic needs, then happiness-comfort-luxury. You can buy with money, because money has value. The person you are giving money to believes that they will be able to use the money again in the future. Banks are there, so your money is worth it. Digital transactions from Google Pay or any other wallet also decouple cryptocurrency from your virtual account and add it to someone else’s account. As a general rule when you spend, Then it is the bank’s job to see whether the spender has enough money in his account to spend that amount. When money is spent, the amount is deducted and added to the account of the recipient.
Those who are in favor of cryptocurrency say that there are no banks in the world of cryptocurrency. Cryptocurrency calculation is done by everyone who uses cryptocurrency. The collective name for public accounting is ‘Blockchain’. Next to everyone’s specific ID on the blockchain is written – who has how much cryptocurrency, who has spent how much cryptocurrency. When cryptocurrency is spent, the blockchain will be updated through digital mining every time it is spent. The more digital mining you can do to update the blockchain, the more cryptocurrency will come into your account. The famous ‘Byzantine General Problem’ in game theory in computer science is the basics of digital mining. Massive numbers of supercomputers, advanced mining software, Digital mining is impossible without massive data storage and an incredible amount of electricity. Just updating the Bitcoin blockchain costs the equivalent of a year’s worth of electricity in Australia. As a result, digital mining is likely to be monopolized by big business houses and corporates.
If the account of money is banked, the rope to control that bank is in the hands of the government or the central bank. But there is no central mechanism to control the corporate house controlling the blockchain of cryptocurrencies. Fraudulent is easy here because cryptocurrency’s blockchain is anonymous. Drug dealers are trading under the cover of random numbers, illegal arms smugglers are opting for crypto. Black money is turning white in the crypto speculation market. In one such scam recently, two cryptocurrencies named Luna and Terra USD lost 50 billion USD in a few hours to the scam. Some ordinary crypto account holders have benefited from this.
Those who championed cryptocurrencies after the 2008-2009 economic recession are all members of the American Liberal Party. Privatization is central to the ideology of this far-right American liberal party. They think that everything except law and order should be privatized. It is precisely in this context that cryptocurrencies were imported with the aim of privatizing the financial system. They think that it is natural that the currency of the digital era will be digitized. Opponents of this opinion think that the cryptocurrency theme created for the profit of any big business house or corporate organization, excluding the Central Bank, will not benefit people; Rather, it will shake the healthy financial position.
Sudhir Saha: Columnist