CRYPTOCURRENCY
"Cryptocurrency currencies take the concept of money, and they take it native into computers, where everything is settled with computers and doesn't require external institutions or trusted third parties to validate things".
Meaning of cryptocurrency
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currency and are also classified as a subset of alternative currency and virtual currency.
First cryptocurrency
Bitcoin, created in 2009, was the first decentralized cryptocurrency Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins, as a blend of alternative coin. Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger.
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.
How does the crypto-economy compare with real ones?
Comparison of market capitalisation of cryptocurrency with broad money (total money in an economy) throws up interesting facts about the scale of this economy. Broad money includes total money deposited in banks, nonbank financial institutions, state and local governments, non-financial public enterprises, and the private sector. Although the crypto-economy is much smaller than that of China and the US but it is fairly comparable with other economies. For instance, it is more than one fourth the size of India's total money with the public or in the banks.
TAXATION
The Central Board of Direct Taxes has no guidelines on income-tax for profits on the sale of cryptocurrency. But if bitcoins have been purchased as investment, any profit on sale can be booked as capital gains.
The finance ministry on Friday cautioned investors about the risks of trading in cryptocurrencies such as bitcoin, saying digital currency investments are like "Ponzi schemes."
Cryptocurrencies are not legal tender and have no regulatory permission or protection in the country, the finance ministry said in a statement, but stopped short of announcing an outright ban or imposing any curbs."Government has the sovereign duty to come up with a legal framework to regulate the cryptocurrencies and protect genuine investors,"
The price of bitcoin dropped sharply on Thursday after South Korea said it planned to ban trading in cryptocurrencies. The move came after police and tax authorities reportedly raided local exchanges this week over alleged tax evasion.
South Korea announces plan to ban cryptocurrency exchanges
South Korea has been one of the keenest adopters of bitcoin but the country’s justice minister, Park Sang-ki, said in a press conference on Thursday that the government had “great concerns” about digital currencies. The justice ministry is “basically preparing a bill to ban cryptocurrency trading through exchanges,”. The news comes after the South Korean government banned cryptocurrency exchanges from opening new customer accounts in December as it attempted to rein in speculation which has seen prices swing wildly in recent months.“The plan to ban cryptocurrency exchanges, recently mentioned by the nation’s justice minister, is one measure in talks to curb speculative investments, which the government will carry on with enough discussion for before finalizing the decision,”.
INDIAN CRYPTO CURRENCY
On official website of Laxmi coin already announced launched date which is 1st March 2018means from this date Laxmi coin market will be started and user will buy or sell Laxmi coin for which every interested person need to create new account with email address and mobile number so on exact date of 1st March 2018 every process of account creation will be started and before that instruction will be given on official website i.e. laxmicoin.com and as per latest report there are over 30 million Laxmi coin limit have for customer to buy and sell.