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Are Cryptocurrencies worth investing in?

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Are Cryptocurrencies worth investing

With technological advancements, we have invented several new things, one of which is Cryptocurrency. The cryptocurrency market is gaining momentum in the global economy. But still, there are concerns about cryptocurrencies. Such as are cryptocurrencies worth investing in? So stay tuned with this article, and we will tell you all the ins and outs of cryptocurrencies to help you make an informed choice about investment in cryptocurrencies. 

What are Cryptocurrencies? 

What are Cryptocurrencies

Cryptocurrency refers to a virtual currency. It is different from a regular currency because it is digital and not regulated by a central bank like RBI. Its popularity is rising because people are trying to explore these virtual trading platforms. There are hundreds of cryptocurrencies available in the market. Various cryptocurrencies that are gaining popularity worldwide are Bitcoin, Dogecoin, Ethereum, XPR, etc. There are minute differences in the characteristics of these cryptocurrencies based on their use. Some can be used only for private investments, while some are for replacing money. 

The digital wallet stores the cryptocurrency after the purchase. The best part is you don’t need to keep any coins or physical bills, but you get a digital record of your transactions. This decentralized ledger used to record all cryptocurrencies transactions is called Blockchain.

Risks associated with Cryptocurrencies 

Risks associated with Cryptocurrencies

The question “are cryptocurrencies worth investing ?”is still bothering lots of people. There are various risks with cryptocurrencies, due to which several people don’t want to invest in these currencies:

  1. Cryptocurrencies are highly volatile, which increases the risk of investment. Their prices can swing suddenly. 
  2. There are no regulatory laws for cryptocurrencies. Lack of regulations leaves scope for fraud and other concerns. 
  3. There is a constant fear of a ban on cryptocurrencies like there was a ban on Bitcoin in Turkey, recently. If Cryptocurrencies are banned in the country, investors can suffer huge losses. 
  4. Another concern about cryptocurrencies is that they might be hacked by hackers, being a digital asset. This can lead to the loss of millions. 
  5. Another concern about cryptocurrencies is that if you forgot your password, all your investments are gone. Since a password protects it, you can’t be negligent to forget the password. Otherwise, your assets will go in vain. 
  6. The primary concern about these cryptocurrencies is that they are prone to malware attack and scams. 
  7. They are still not used widely for transactions as they don’t enjoy any safety like INR, Dollars, Pounds. This makes them less favourable for daily purchases. 
  8. The unpredictability of demand of these cryptocurrencies can lead to no returns instead of high returns as forecasted by experts. 

This is why it is yet to get popularity similar to existing equities and bonds.

Positive points about Cryptocurrencies

Positive points about Cryptocurrencies

Certain positive things about cryptocurrencies are below: 

  1. According to experts, the risk in investing in cryptocurrencies is not very high as compared to traditional assets. 
  2. Crypto trading can lead to higher rewards. 
  3. Cryptocurrency is also resilient, according to experts. 
  4. They are less affected by inflation which makes them better than stocks and fiat currencies. It also appears as a better alternative to gold investment. 
  5. It is digital and decentralised, which means these currencies don’t need to be stored and can get high-value growth. 
  6. Cryptography (a process to secure your transactions) in cryptocurrencies ensures that the transactions \ by an individual are not at stake, even if anyone can join this Blockchain.

The situation of Cryptocurrencies in India 

situation of Cryptocurrencies in India

In India, demand for cryptocurrencies is rising but is still significantly less than traditional assets. One must note that although there is no such law in India to ban cryptocurrencies, there were news reports that claimed that RBI would ban all these cryptocurrencies and launch its cryptocurrency. 

So we can say that the Indian Govt is yet to come on a substantial stand on cryptocurrencies. Therefore concrete legislation for Cryptocurrencies in India is the need of the hour. 

Also, the 2018 notice by RBI to ban all Cryptocurrencies in India remains a concern for those willing to invest in cryptocurrencies. But the honourable Supreme Court of India held the notice. Therefore there has been liberal trading of Cryptocurrencies presently in India. But owing to all the reasons mentioned above, it is yet to gain momentum. 

What CEO of WazirX Nischal Shetty has to say regarding Cryptocurrencies

CEO of WazirX Nischal Shetty

Nischal Shetty, CEO of One of the popular cryptocurrencies, WazirX, says that Cryptocurrencies are resilient. To prove his statement, he says that these virtual currencies had even sustained two global recessions, and still, they are in use. 

He further said that these currencies are beneficial in protecting fiat currencies and equities like gold. He also mentioned that cryptocurrencies saw a massive demand during the pandemic due to this factor. The only advice that he gives is to research more about these cryptocurrencies before investing in them. 

Way ahead

Seeing the current figures, experts believe that cryptocurrencies will attract more investors in the future. But as far as India’s cryptocurrencies scenario is concerned, there is still very little investment in cryptocurrencies. In this scenario, are cryptocurrencies worth investing? There are people both in favour and in opposition to cryptocurrencies. After going through all the aspects of cryptocurrencies, one can conclude that investment in cryptocurrencies remains a tricky issue and only after overcoming these lacunae one can expect it to become a new normal.

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Banks To Be Closed From Tomorrow For 6 Days

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Banks To Be Closed From Tomorrow For 6 Days

Why are banks going to be closed?

banks going to be closed

The Reserve Bank of India has announced special times of year for moneylenders under three sections: the Negotiable Instruments Act, Holiday, Real Time Gross Settlement Holiday, and Banks’ Closing of Accounts. All banks to be closed from tomorrow for 6 days, including the public area, private area, foreign banks, agreeable banks, and regional banks, the nation overstay shut on these told occasions. The bank occasions differ, starting with one state then onto the next. 

Every one of the banks stays shut on Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2), Christmas Day (December 25). Banks likewise stay shut on celebrations including Diwali, Christmas, Eid, Guru Nanak Jayanthi, Good Friday.

When Will, The Banks, Stay Closed?

When Will, The Banks, Stay Closed

Banks have 15 holidays in July; All banks will stay closed on July 16th in Dehradun for Harela Puja. Banks will remain closed on 17th July in Agartala and Shillong for U Tirot Sing Day and Kharchi Puja. July 18th is Sunday which is a national holiday for all Banks. Banks will remain closed on 19th July in Gangtok for Guru Rinpoche’s Thungkar Tschechu. July 20th marks Bakrid, so all Banks in Jammu, Kochi, Srinagar, Thiruvananthapuram will be closed for that occasion, and there will be a national holiday on 21st for Eid Al Adha. Still, the banks in Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram will be functional on that day.

What to do?

If you are a bank customer, please keep visiting your bank for a proper routine and get any urgent work done before these mentioned holidays. 

List of Dates

List of Dates
  • 16 July 2021- Friday – Harela Puja (Dehradun)
  • 17 July 2021 – Saturday – U Tirot Sing Day / Kharchi Puja (Agartala, Shillong)
  • 18 July 2021 – Sunday (Weekend off)
  • 19 July 2021 – Monday – Guru Rinpoche’s Trungkar Tshechu (Gangtok)
  • 20 July 2021 – Tuesday – Bakrid (Jammu, Kochi, Srinagar, Thiruvananthapuram)
  • 21 July 2021 – Wednesday – Eid al Adha (Nation-wide except for Aizawl, Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram)

Conclusion

If you have any future work at the bank, here is a notice for you as banks to be closed from tomorrow for 6 days beginning one week from now because of the moving toward celebrations. According to the Reserve Bank of India (RBI) occasion schedule list, every nine occasions is a state-explicit occasion for various events. Consequently, on the off chance that you have significant bank-related work in July, this news article should have indeed helped you identify these holidays.

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Will The Ban on Mastercard by RBI affect existing Indian Customers?

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Ban on Mastercard by RBI affect existing Indian Customers

What has happened?

The R.B.I has banned Mastercard Asia and Pacific Pte. Ltd. from getting new customers into their company in India. Will the ban on Mastercard by RBI affect existing Indian customers? The ban has happened because Mastercard Asia, Pacific Pte Ltd have not accepted the terms and conditions of foreign card companies to store payment data in India.

The ban will take effect from the 22nd of July. The regulator of R.B.I said that “The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.”

What will banks do now?

What will banks do now

Being a reputed payment system operator, Mastercard was authorized to issue cards for payment in India under the Payment and Settlement Act System. But as of now, R.B.I has banned the production of credit, debit, or prepaid cards from Mastercard to new customers, from the 22nd of July. Banks will not be able to issue new mastercards from now on. R.B.I also added that “Mastercard shall advise all card issuing banks and non-banks to conform to these directions.”

As the order was issued, RBL Banks Said, “We await further information from Mastercard on RBI’s supervisory action. RBL Bank currently issues credit cards on the Mastercard network only.”

Will This Affect Existing Customers of Mastercard?

Affect Existing Customers of Mastercard

India has millions of Mastercard’s credit and debit card users. So, the ban on mastercard by RBI affect existing Indian customers.

According to the data released by PPRO, London Based Payments, Mastercard was held accountable for over 30% of total transactions done in India. So, if you are an existing customer of Mastercard in India, you don’t have to worry as this new regulation will not affect the existing customers, The regulator of R.B.I earlier mentioned that “This order will not impact existing customers of Mastercard.”, So if you own a Mastercard Credit, Debit or Prepaid card, you can use it without any hassle.

What is the R.B.I’s Payment Data Storage Rule?

R.B.I's Payment Data Storage Rule

In 2018, R.B.I.’s regulator issued a notice that “All system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India.”

It affected tech giants like Google, Paytm, Whatsapp, who used to store data in cloud-based storage outside India. The Bank further stated that “This data should include the full end-to-end transaction details or information collected or carried or processed as part of the message or payment instruction.”

RBI gave a half year time to guarantee new installment information stockpiling standards. The organizations were approached to report consistency and present a review report inside the course of events. Even after two years, a few unfamiliar organizations are yet to follow RBI information localization rules.

Conclusion

So it seems that the Indian Government has finally started getting strict in terms of digitized data storage. This will continue to affect tech companies who hesitate to show their privacy policy. Thus, all data will be more regulated and protected.

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Business & Finance

Critical judgment on Cash Deposits by Housewives Up to Rs 2.5 Lakh

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Critical judgment on Cash Deposits Up to Rs 2.5 Lakh by Housewives

Introduction 

Tax is an essential source of revenue for the government. But to avoid the exploitation of poor people due to high taxes, we have several laws providing certain exemptions to specific people. But still, there remains some ambiguity in his rules due to which the court and tribunals have to intervene and clarify particular provisions. Along the same row, the ITAT (Agra bench of Income Tax Appellate Tribunal (ITAT) has recently held that if a housewife makes a cash deposit of Rs. 2.5 lakhs after demonetization, it will not come under the purview of Income Tax. So, in this article, we will tell you all the details of this critical judgment on cash deposits by housewives up-to Rs.2.5 lakh.. 

What was the case, and what did the Tribunal hold? 

what did the Tribunal hold

Recently, a housewife named Uma Agarwal, a resident of Gwalior, appealed in the Agra bench of Income Tax Appellate Tribunal. She had a total income of Rs 1,30,810 in her income tax return filed for fiscal 2016-17. After demonetization, she deposited Rs 2,11,500 cash in her bank account. But the Income-tax department asked her how she got this much money in her account, to which she explained that she saved this amount from the savings of her husband, children, etc. 

However, the CIT did not believe her, and they ordered to treat this money as unexplained money. Therefore the lady appeal in the matter. The appellate tribunal after hearing both the parties said that it allows the appeal because women’s contribution to the family is immeasurable. It further explained the earlier decision taken by the Supreme Court. In addition, the tribunal acknowledged that nearly 159.85 million women have household work as their primary occupation in Indian homes. 

The Tribunal held that women save every money they get in gifts, but due to demonetization, they had to deposit this money in the bank to get new currency notes. Therefore the Tribunal exempts all the women who made cash deposits of less than Rs. 2.5 lakh during demonetization. This decision will become an important precedent for other future decisions. 

Closing words: 

This critical judgment on cash deposits by housewives by the Income Tax appellate tribunal is an important decision for housemakers. We often ignore The wives who do housework. Even government does not count their contribution in National Income. Therefore it becomes difficult for them to show how they collected their Income. But after this decision, there are chances that the scenario might improve in the future, and we will start valuing household work as we weigh the professional work.

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