A huge costs charged by financial institutions for

A cryptocurrency is a virtual fund that uses cryptographic algorithms to transfer funds across parties and keeping them secure. Cryptographic forms of money utilize decentralised control instead of centralised control by an entity or organisation. The decentralisation works through blockchain technology (a public transaction database, functioning as a distributed ledger)It is difficult to counterfeit because of cryptography being a security feature. It can’t be issued by any central organisation, rendering it safe from government control.The transfer funds with cryptocurrency is easy. The funds are transferred using public and private keys for security. Minimal processing fees is charged, which helps users to avoid the huge costs charged by financial institutions for remittance.Although, since cryptocurrencies are digital and no a central vault in place, the digital balances can be wiped out by an unforeseen event such as a crash or hack. The prices of cryptocurrency keep fluctuating since the pricing is solely based on forces of demand and supply.There are intrinsic costs, inflation costs, extrinsic costs, transactions costs involved with using money such as finance, future value, friction, fraud, and volatility. Cryptocurrencies are cheap in terms transactions compared to the fiat money. Cryptocurrency has a very low inflation rate of 4% with a future inflation rate of 1.5% in the next few years. Additionally, the monetary policy of cryptocurrencies is such that the inflation rate will be below the inflation rate of USD(2%). Meaning, in terms of transactions costs cryptocurrency is better than fiat money and will have lower inflated costs.The supply of money is limited and can’t be increased beyond the limit.  Most of the countries mint trillions of currency units every year (dollars, euros, rupees, yen etc.). Governments can’t resist the urge to print money. Blockchains can. They provide better market information, therefore less severe business cycles. With a constrained money supply, the production plans would become much better coordination wise with the plans of consumers. Satoshi Nakamoto published a paper in October 2008 on metzdowd.com explaining cryptocurrency, Bitcoin. It was called “Bitcoin: A Peer-to-Peer Electronic Cash System”. Satoshi Nakamoto released the first bitcoin software that launched the network and the first units of cryptocurrency, called bitcoins. He claimed that he wrote the code back in 2007. He knew that due to the nature and its design, it would have to be able to support a variety of types of transactions. The solution helped unique codes and data from the start through the use of a predicative script.He created a website called bitcoin.org and continued to working with other coders on the software until August 2010. In those months, he transferred the control of the source code and network alert key to Gavin Andresen, and many related domains to many key members of the bitcoin community, and stopped working on the project. The public blockchain log shows that Nakamoto’s addresses contain 1,000,000 bitcoins. As of 16 January 2018, this is roughly worth 19 billion USD making him the 44th richest person in the world. The 2008 economic crisis became an important date in the events of world economy because it brought a truly necessary eye-opener for the insensitive conduct of the people associated with the finance and housing industry. This saw the rise of an anonymous person/entity namely Satoshi Nakamoto (it is still not known if it was an individual or an organisation, the identity is still not known). He wrote a white paper in 2009 explaining the, technology and code for the use of blockchain. He also invented Bitcoin, the first cryptocurrency to be invented.Nakamoto’s invention was a foundational innovation. Blockchain challenges to replace all forms centrally controlled systems with a decentralized, peer-to-peer, and open source trust protocol. When a transaction is pending, it is unconfirmed. After it is confirmed, it is no longer forgeable/can’t be reversed, it is part of an uneditable record of historical transactions: of the so-called blockchain.Only miners have the ability to confirm transactions. It is their job to do so in the cryptocurrency-network. They stamp transactions, as legit transfers and broadcast them in the network. After it is confirmed by a miner, every node has to add the transfer its transaction log. For their work, the miners get paid with a token of the respective form of cryptocurrency. A miner’s work is the most important part of cryptocurrency-network Supply/Demand is the only economic law that has direct affect on the price of cryptocurrencies. Bitcoin has a maximum of 21 million units, divisible 100 million times. Even if 1 billion people out of the 7 billion were to adopt Bitcoin, the units would not get acquired by each of them which is why it has a significant price tag. Since the supply is limited, people pay more to get the cryptocurrency.The cryptocurrency market is dirty but it does not change the fact that it is here to. People buy cryptocurrencies to protect themselves against the devaluation of their national currency. Asia is a huge market for cryptocurrency transfers. RBI’s postion on cryptocurrencies is pretty clear as of now. They don’t see it as a form of legal currency.It has stated five major risks of trading of cryptocurrencies:1. Being in electronic format, cryptocurrencies are more prone to risk of hacking, viruses etc. 2. Lack of a central organisation to regulate the transfers or to go to for redressal of grievances. 3. No underlying of asset for the digital currency, making its value speculative. 4. Exchanges are sparsely located throughout the world, making it difficult for law enforcement as multiple jurisdictions would be there. 5. Cryptocurrencies may influence the user to engage in illegal activities since the digital currency, can easily be used anonymously for illegal activities.Fiat money is just a legal tender which holds value simply because governments command it. However, if we investigate the course of history; again, and again, we see states fizzle, governments fall, and their cash swell to nothing. This isn’t by botch, but by design.Cryptocurrencies are political in nature because no government can assert control on them. All other forms of wealth can be stolen/extorted from a person; cryptocurrencies can’t be stolen because of the cryptographic algorithms that they use for remittanceWith the recent demonetisation of largest bank notes in India, the war on cash is evident. This will be a war for monetary control of the economy by both governments and banks. This isn’t for our wellbeing or security, it is to for the theft of our assets/wealth, and the continued enslavement to banking and political interest of the government.To capture cryptocurrencies, governments need to auction off the cryptocurrency payment system to be regulated by using force and power. Cryptocurrency is flawed in terms of privacy that should scare off orthodoxical people and privacy advocates alike. However, these same flaws make cryptocurrency insanely appealing to the financial world. The transparency of blockchain offers the idea of a regulated and systematic world of digital currencies. Through implementing such a system, governments would lose monetary control on the economy. It is plain and simple economics which will help cryptocurrencies to win against fiat money.New, fresh $100 bills are acknowledged everywhere on the planet since it is the financial dominion of the U.S. dollar. However, there is nothing in the dollar bills themselves that that have genuine value; only that the following individual who understands that bill will realize that it is worth $100The incidence of one individual spending a cryptocurrency balance more than once is a huge concern for everyone. The blockchain doesn’t prevent double-spending; instead, all transactions posted to the blockchain are verified and protected through a confirmation process. Once it is onfirmed, it becomes irreversible and posted publicly.Sooner or later the cryptocurrency will start ripping up economies and it’s only a matter of time before that happens. India should capitalise on the position and move ahead with legalising cryptocurrency as it would have a direct effect on the increase of GDP of the country. Each and every transaction would be accounted for and no fraudulent printing of money would occur. This would be a sure shot of way of curbing the problem of black money.