JOURNEY OF DIGITAL CURRENCY FROM THE BEGINNING

The word crypto currency stands for an encrypted digital currency that can be transmitted and validated through a specific process generally referred to as mining. Ii is introduce in global financial subsystem on 2017. This actually all started with the now infamous Bitcoin and a man named Satoshi Nakamoto. Nakamoto’s goal in the beginning was to create nothing more than an electronic peer to peer cash system. People had for a long time been trying to create some kind of online digital cash system, but had always failed due to the issues with centralization.

Satoshi Nakamoto knew that another attempt at building an online centralized cash system would only result in more failure, so he decided to create a digital cash system that had no centralized authority. And so came the birth of the Bitcoin. Yes, Satoshi Nakamoto invented the Bitcoin, the very first decentralized form of digital cash that had no central governing or controlling body. Bitcoin was to be the property of the entirety of the Bitcoin community.

Nakamoto created Bitcoin back in 2008 and it’s value exploded without question. Back when it was first created, it had a value of little over a single cent. However, the value quickly grew and in late 2009 had already reached $27 for a single Bitcoin. Now, in 2017, a single Bitcoin has a value of over $7,500, so as you can see, the value of this particular crypto currency has skyrocketed to monumental levels.

Since Nakamoto revealed his amazing innovation there have been dozens of other decentralized crypto currencies released by several parties. Some of the most popular and highly valued crypto currencies at this time include Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Dash, NEO, NEM, Monero, and many others. Like we said, the history of crypto currencies is not a very long one, but it is certainly an interesting and eventful history. Now that crypto currencies like Bitcoin have proven their value, their ability to operate in the real world, and have shown that they possess real purchasing power, more and more banks, investment firms, and trading organizations, as well as retailers, have begun to accept them as legit forms of currency and payment. The history of crypto currency is still happening as we speak, so stay tuned because there are always more developments to come!

PROCESS OF TRANSACTIONS OF CRYPTO CURRENCY ( MINING)

First, there is a need to define public ledgers. This ledger called BLOCK CHAIN (Bitcoin Ledger). It needs to be noted that all confirmed transactions with the use of crypto currency are kept in public ledgers. The identity of the user generally remains confidential and the public ledger makes sure that the relevant balance of the user is calculated correctly. The new transactions are usually monitored in order to make sure that the user of the digital wallet spends only the coins he/she owns.

The second term that needs to be deciphered is a transaction. It generally refers to the transition of money between two e-wallets. The transactions are all kept in public ledgers and wait to be confirmed. The process of transaction confirmation usually takes several minutes. There is one more term that is used in regard to crypto currency – mining. To put it simply, mining stands for the procedure of approving the transaction and transferring them to the public ledger. The mining procedure adds value to crypto currency and is generally referred to as a proof-of-work system.

The first factor is adaptive scaling, which makes it possible for crypto currencies to work properly in different scales. One of such systems can be found in Bitcoin.

Bitcoin is a first crypto currency in this crypto world.. This is specially designed to permit a single transaction to be mined in around 10 minutes. BITCOIN introduced by Satoshi Nakamoto. Crypto currency is cryptographic, which means that it uses a special encryption that allows controlling the generation of coins and confirming the transaction. One more distinction of crypto currency from traditional one is the fact that conventional financial systems use physical objects, while crypto currency is completely electronic. and other financial systems.

In fact, it does not require any physical objects, as digital money can be stored in special wallets and then transmitted electronically to other individuals’ wallets through financial transactions. This is the first and foremost distinction between crypto currency and other financial systems.

One more characteristic of crypto currency is the use of the proof-of-work system. When using such systems, a special puzzle is exploited to restrict the usage of crypto currency mining. It is also worth mentioning that for any currency to be effective, it needs to have some value. In the traditional system, gold is represented by the US dollar. Gold is a rare resource and requires much effort to obtain and then refine it. Therefore, the rarity of this resource is exactly what gives gold some value. Consequently, this is what gives value to the US dollar.

As for the crypto currency, it uses quite the same terms in relation to value. Coins here are generated by so-called miners. These are the individuals who operate software and hardware intended for dealing with the proof-of-work systems. The work of these individuals is what gives value to the digital coins, and at the same time, the rarity and demand for coins are what causes the fluctuations in their value. Such ideas are incorporated in the proof-of- work system. However, there is one more way to validate digital money. The value can be generated when the transactions are placed in public ledgers, which is also an important aspect of crypto currency. With that said, crypto currency continues to develop and remains a promising financial system with many prospects for the future. It is a decentralized monitory system and easy to converted to the cash.

LEGAL POSITION OF CRYPTO CURRENCY IN INDIA

India was a late entrant to crypto adoption. Due to restrictions in foreign currency remittances and allowable overseas investments, Indians often does not get to trade in international financial instruments. During the time when bitcoin was picking up pace in China, Indians struggled to transfer money to the overseas Bitcoin exchanges and thereby missed the Bull Run.

However, things changed drastically after the demonetization drive announced by PM Narendra Modi. This action was meant to curtail counterfeit cash, but it also left many people panicking. In the panic, Indian residents turned to Bitcoin. Google recently reported that searches from India about Bitcoin have reached all-time highs, and the value has too.

Once the local exchanges started functioning in India, the Bitcoin users got a

feasible option to purchase Bitcoin using local currency and the adoption of

Bitcoin started increasing considerably. Owing to the shortage of Bitcoin

sellers in India, the Indian Bitcoin price often ran at a premium of over $400

India seems to be next in line to legalizing Bitcoin, now that the government from the international market price.

has agreed to regulate Bitcoin. The Indian government has agreed that regulating Bitcoin could be beneficial and is currently creating the laws to do so. The Reserve Bank of India is also considering using the block chain technology in banking.

In India, the Department of Economic Affairs, Ministry of Finance has constituted an inter-disciplinary committee to examine the existing framework around Crypto currencies and submit a report by July. The committee will not only examine the present scenario of crypto currencies in India and around the globe, but will also suggest measures and

means to deal with consumer protection, education and money laundering.

In India, the Department of Economic Affairs, Ministry of Finance has constituted an inter- disciplinary committee to examine the existing framework around Crypto currencies and submit a report by July. The committee will not only examine the present scenario of crypto currencies in India and around the globe, but will also suggest measures and means to deal with consumer protection, education and money laundering.

Once favorable regulatory guidelines are framed for crypto currency trading and investment, the growth of crypto currency in India will be exponential and at some point in time might take up a considerable global market share. The superlative performance of alt coins and ICO token performances have made the Indian investors to look beyond Bitcoin investments. Even though none of the major Indian exchanges are offering other crypto currencies and digital assets, Indians investors have started purchasing alt coins and ICO (Initial coin offerings) tokens from international exchanges. This trend is going to continue and if the Indian regulators provide favorable guidelines for crypto currency investments and trading, India stands to become one of the fastest growing regions for crypto currencies.

Bitcoin and other crypto currencies have risen almost 800% this year in acceptance and use, creating a crypto currency investment boom. The market cap has risen above $162.5 billion in spite of the fact there were no big gains in Litecoin, Monero, or Dash, some of the more popular alternative crypto currencies among traders. Bitcoin and Ether are averaging prices of $4,537.98 and $338.51 respectively as of recent, which is slightly above BTC’s recent high of $4,500 and below Ether’s recent high of $400.

WELCOMING COUNTRIES FOR CRYPTOCURRENCY

1. Japan

Tokyo may no longer be considered as the commercial capital of Asia but the cryptocurrency hub of the region. With China and South Korea taking drastic measures against cryptocurrencies, Japan has been given the opportunity to become a breeding ground for the growth of cryptocurrency trading in Asia.

The Japanese Government through the PSA (Payment Services Act) has set up a framework that which makes it legal to use cryptocurrencies for payment purposes. While China may have the monopoly on Bitcoin mining, Japan has the lion share of cryptocurrency trading/exchange activities as far as Asia is concerned. The FSA which is the financial regulatory arm of the Japanese government also recently approved a number of cryptocurrency exchanges, as well as cryptocurrencies which can be traded on these platforms.

With the support of the Government, cryptocurrency operations are thriving in Japan and in the coming years, many ICOs may even choose to host their

campaigns in the country. By taking advantage of the reticence and ambivalence of many countries with regard to cryptocurrencies, Japan is positioning itself to become a major player in the market. With the industry still being in its infancy, there is a desire for friendly environments where the market can thrive. Government regulation isn’t necessarily a bad thing and the involved of financial regulators in the Japanese crypto scene can give the much needed incentive to entrepreneurs, developers, and investors

to shift focus to the Japanese crypto market.

2. Canada

By the middle of 2016, the Canadian Central Bank was strongly dismissing the notion of developing its own cryptocurrency. Fast forward to August 2017 and the approval given to Impak Coin which becomes the first Canadian approved cryptocurrency. This says a lot about the evolution in the attitude of the Canadian government towards cryptocurrencies. With the Government of their neighbors down South still a bit ambivalent on their position with regard to cryptocurrency, this move only strengthens Canada’s position as a force in

the North American crypto scene.

On the whole, Canada is a friendly environment for cryptocurrency entrepreneurs as there are a number of Bitcoin Startups in the country as well as numerous Bitcoin ATMs. Not many countries have more than one city that can be classified as a virtual currency hub but Canada has two; Toronto and Vancouver. Many countries can look to the successes of such initiatives and use them as a reference point in developing their own cryptocurrency hubs.

Following the success of Impak Coin, there are other cryptocurrencies that are reportedly undergoing testing and development. These cryptocoins are scheduled for release in the coming years and are a testament to Canada’s positive stance on virtual currencies.

3. Germany

Cryptocurrencies generally enjoy favorable Government policies in Europe as many nations on the continent are even massively involved in developing blockchain solutions. The UK and France especially, are leaders in this regard. Germany is one of the few countries where Bitcoin is actually

recognized as a legal currency.

There is a significant implication to this recognition of Bitcoin as being a legal currency in Germany. Many countries have not banned Bitcoins outright but have taken a not so positive stance against cryptocurrencies. Bitcoin being legal in Germany has had an impact on the value of Bitcoins due to the perceived legitimacy given to it by such Government recognition.

German tax laws are also favorable to Bitcoin with an exemption from the 25% tax on profits for Bitcoin that has been held for one year. The country

is also home to one of the biggest Bitcoin marketplaces in the world which has recently finalized plans to introduce Ethereum (the second most valuable cryptocurrency) trading into the platform.

4. Holland

There is a literal “Bitcoin City” in the country of Holland which is home to hundreds of cryptocurrency merchants. This Bitcoin City is located in Arnhem and it is possible to make retail purchases at shops and cafes with Bitcoin.There is no Government regulation on Bitcoin and other cryptocurrencies in Holland. Many cryptocurrency start-ups are based in Holland as a result.The existence of such crypto hubs creates a possibility for the evolution and advancement of the crypto economy. There are many bugs that have to be worked out before cryptocoins can become a mainstream currency and having such infrastructures as a Bitcoin City helps to improve the functionality of the concept. Within the Bitcoin City in Arnhem, Bitcoin is just like Euros, or Dollars, or any other fiat currency; a store of value. When people engage in economic interaction using Bitcoins, a consciousness is created within the general public that cryptocurrencies can function just like regular fiat money.

5. Estonia

Estonia accepts the use of cryptocurrencies and its related innovations such as blockchain technology. The country now has a number of bitcoin ATMs, as well as several start-ups that use bitcoin as a currency, such as Paxful. It was also one of the first to use a blockchain-based e-voting service that enables people to become shareholders of Nasdaq’s Tallinn Stock Exchange.

6. USA

The US has the largest bitcoin trading volume in the world. Since 2013, the U.S. Treasury has classified bitcoin as a convertible, decentralized, virtual currency. The Commodity Futures Trading Commission classified bitcoin as a commodity in September 2015. As for the IRS, bitcoin is taxed as a property. A federal judge ruled in September 2016 that Bitcoins fall under the definition of funds.

7. Bulgaria – Bulgaria has accepted the digital currency. Its National Revenue Agency had issued new taxation guidelines stating that income from the sale of digital currencies such as Bitcoin will be treated as income from the sale of financial assets and taxed at a rate of 10 percent.

8. China – In late 2013, China’s Central Bank (the People’s Bank of China) barred financial institutions from partaking in digital currency and Bitcoin transactions, but individuals are free to trade as they wish – Chinese yuan to Bitcoin is the most traded daily fiat to Bitcoin pair.

9. Colombia – It has decreed that cryptocurrency is not illegal, but at the same time it won’t be getting legal recognition any time soon.

10. Croatia – On December 6, 2013, the Croatian National Bank (CNB) reportedly conducted a discussion on the circulation of digital currencies and concluded that the Bitcoin is not illegal in Croatia.

11. Czech Republic – The Czech government recently introduced a law requiring virtual currency exchanges determine the identity of customers. Alongside this, the country’s authorities will also soon add a Value Added Tax (VAT) to virtual currencies in the near future.

12. Denmark – The Danish government and Financial Supervisory Authority have announced that Bitcoin businesses will be taxed in a normal manner, and individuals will not be subject to taxation from trading. “The Danish central bank is considering a digital-only e-krone.”

13. Finland – The Finnish regulatory body has declared that Bitcoin should be treated as an asset and be subject to VAT and capital gains, although the capital gains losses would not be deductible.

14. France – The French government has shown some interest in the technology, but according to pundits has yet to launch major initiatives in the field.

15. Israel – Israel’s government is set to apply capital gains tax to Bitcoin sales, categorizing digital currencies as a type of property.

16. Italy – Tax authorities appear to be treating Bitcoin as a form of currency. They have clarified purchases and sales made with Bitcoin remain exempt from VAT. However, Italian tax officials appear to be applying income tax to speculative uses of Bitcoin, or events in which money is made during a sale or purchase. Those buying Bitcoins outside of the scope of speculative activity, it indicates, aren’t required to pay income tax.

17. Kazakhstan – Seeking to become the regional hub for cryptocurrencies. In June 2017, Kazakhstan announced plans to begin selling blockchain based bonds, and the country’s President announced that, “It is high time to look into the possibility of launching the international payment unit. It will help the world get rid of monetary wars, black marketeering and decrease volatility at markets.”

18. Luxembourg – In April 2016, it granted a payment institution license to a Bitcoin exchange, making the company the first nationally licensed Bitcoin exchange in the world.

19. Mexico – The Mexican government has not banned the use of alternative digital currencies outright but instead is in talks with government regulators to try and introduce their own form of Bitcoin and their own blockchain specific to Mexico.

20. The Netherlands – In June 2013, the Dutch Finance Minister released a report that gave Bitcoin the status of an item of barter, meaning it needed no specific licensing or compliance requirements. He said, “Bitcoin is not a financial product as defined by law; purchase or sale of Bitcoins is not a financial service either, so the financial services act does not apply.”

21. New Zealand – The Reserve Bank regards cryptocurrencies as a “vulnerability” and considers cryptocurrency as a payment system rather than a currency.

22. Philippines – In February 2017, BSP the Philippine Central Bank said it plans to officially regulate local Philippine Bitcoin exchanges as remittance companies and recognize Bitcoin as a legitimate payment method, while issuing a proper regulatory framework for Bitcoin users, exchanges and companies.

23. Poland – It has officially recognized the trading and mining of virtual currencies as an “official economic activity” but has said that regulation should come from the EU.

24. UK- It has a quite positive attitude toward crypto currencies. Uk’s finiancial authority is working on it.The Bank of England continues to monitor Bitcoin technology, while it continues to be classified as private money, with VAT applied and also subject to capital gains tax, where there P&Ls are involved.

25. Singapore – In early 2014, the Singapore government declared Bitcoin as a good purchased to purchase goods and therefore subject to a specific tax. The Monetary Authority of Singapore then required exchanges and ATM providers to Green-list, or de-anonymize their users to allow while simultaneously declaring that virtual currencies such as Bitcoin are not securities and not subject to regulation.

26. Slovenia – Slovenia took a middle road in December 2013 in declaring that Bitcoin was neither a financial asset nor a currency and should be taxed based on the circumstance it was used, whether it was via trading profits or through mining.

27. South Africa – The South African Revenue Service has stated that any transaction or speculation in Bitcoin is subject to general tax rules; it has added that it is the responsibility of both citizens and residents of South Africa to report each and every Bitcoin transaction detail to the South African Revenue Service.

28. Spain – Notable among EU members, Spain is lobbying to establish a cryptocurrency regulatory framework. The Spanish government has confirmed that cryptocurrencies are exempt from Value Added Tax, and Spain has whole streets full with Bitcoin- friendly stores. Plus, many Bitcoin companies call Spain their home, and Spanish banks BBVA and Bankinter now invest in Bitcoin companies.

29. Sweden -– Looking to shift to digital currency, the central bank’s decision to cut interest rates into negative territory has led to an increase in demand, supporting appetite for Bitcoins and alternatives to protect capital. Unlike neighboring Denmark, the Swedish regulator has publicly declared Bitcoin as a legal currency.

30. Switzerland – Switzerland’s financial markets regulator has approved the first Swiss private bank for Bitcoin asset management, potentially paving the way for other global banks to offer digital currency products.

31. South Korea

The country is quickly accepting Bitcoin as a means of exchange and also as an investment. There are no laws in South Korea that regulate a Bitcoin’s use; however, authorities prosecute illegal activity involving Bitcoin. The country hosts regular Bitcoin conferences and those who wish to use the currency are welcomed.

32. Hong Kong

Hong Kong is excited about cryptocurrencies. The Hong Kong Monetary Authority (HKMA) does not regulate Bitcoin. With the opportunity in mind, the country has the world’s second Bitcoin ATM by Robocoin after it first launched in Canada.

33. Australia

Australia recently moved to remove “double taxation” on Bitcoin despite major banks being rather hostile towards the digital currency. Australia classifies bitcoin as property and therefore purchases made with bitcoin as barter. The Australia Post will also consider using distributed ledger technology to store digital identities in an effort to improve services, and reverse falling revenue.

Here is a list of the biggest (and smaller) names who accepts bitcoins as a currency.

WordPress.com – An online company that allows user to create free blogs

Overstock.com – A company that sells big ticket items at lower prices due to overstocking

Subway – Eat fresh

Microsoft – Users can buy content with Bitcoin on Xbox and Windows store

Reddit – You can buy premium features there with bitcoins

Virgin Galactic – Richard Branson company that includes Virgin

Mobile and Virgin Airline

OkCupid – Online dating site

Tigerdirect – Major electronic online retailer Namecheap – Domain name registrar

CheapAir.com – Travel booking site for airline tickets, car rentals, hotels

Expedia.com – Online travel booking agency Gyft – Buy giftcards using Bitcoin

Newegg.com – Online electronics retailer now uses bitpay to accept bitcoin as payment

1-800-FLOWERS.COM – United States based online floral and gift retailer and distributor

Dell – American privately owned multinational computer technology company

Wikipedia – The Free Encyclopedia with 4 570 000+ article Steam – Desktop gaming platform

The Internet Archive – web documatation company

Bitcoin.Travel – a travel site that provides accommodation, apartments, attractions, bars, and beauty salons around the world Pembury Tavern – A pub in London, England

Old Fitzroy – A pub in Sydney, Australia

The Pink Cow – A diner in Tokyo, Japan The Pirate Bay – BitTorrent directories Zynga – Mobile gaming

Tesla – The car company

4Chan.org – For premium services

EZTV – Torrents TV shows provider

Mega.co.nz – The new venture started by the former owner of MegaUpload Kim Dotcom

Lumfile – Free cloud base file server – pay for premium services

Etsy Vendors – 93 of them

PizzaForCoins.com – Domino’s Pizza signed up – pay for their pizza with bitcons

Whole Foods – Organic food store (by purchasing gift card from Gyft)

Bitcoincoffee.com – Buy your favorite coffee online

Grass Hill Alpacas – A local farm in Haydenville, MA

Jeffersons Store – A street wear clothing store in Bergenfield, N.J Helen’s Pizza – Jersey City, N.J., you can get a slice of pizza for 0.00339 bitcoin by pointing your phone at a sign next to the cash register

A Class Limousine – Pick you up and drop you off at Newark (N.J.) Airport

Seoclerks.com – Get SEO work done on your site cheap

Mint.com – Mint pulls all your financial accounts into one place. Set a budget, track your goals and do more

Fancy.com – Discover amazing stuff, collect the things you love, buy it all in one place (Source: Fancy)

Bloomberg.com – Online newspaper

Humblebundle.com – Indie game site

BigFishGames.com – Games for PC, Mac and Smartphones (iPhone, Android, Windows)

Suntimes.com – Chicago based online newspaper

San Jose Earthquakes – San Jose California Professional Soccer Team (MLS)

Square – Payment processor that help small businesses accept credit cards using iPhone, Android or iPad

Crowdtilt.com – The fastest and easiest way to pool funds with family and friends (Source: crowdtilt)

Lumfile – Server company that offers free cloud-based servers Museum of the Coastal Bend – 2200 East Red River Street, Victoria, Texas 77901, USA

Home Depot – Office supplies store

Kmart – Retail products store

Sears – Clothing and household products, electronic store

Gap, GameStop and JC Penney – have to use eGifter.com

Etsy Vendors – Original art and Jewelry creations

Fight for the Future – Leading organization finding for Internet freedom

i-Pmart (ipmart.com.my) – A Malaysian online mobile phone and electronic parts retailer

curryupnow.com – A total of 12 restaurants on the list of restaurants accept bitcoins in San Francisco Bay Area

Dish Network – An American direct-broadcast satellite service provider

The Libertarian Party – United States political party

Yacht-base.com – Croatian yacht charter company

Euro Pacific – A major precious metal dealer

CEX – The trade-in chain has a shop in Glasgow, Scotland that accepts bitcoin

Straub Auto Repairs – 477 Warburton Ave, Hastings-on-Hudson, NY 10706 – (914) 478-1177

PSP Mollie – Dutch Payment Service

Intuit – an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals.

ShopJoy – An Australian online retailer that sells novelty and unique gifts

Lv.net – Las Vegas high speed internet services

ExpressVPN.com – High speed, ultra secure VPN network Grooveshark – Online music streaming service based in the United States

Braintree – Well known payments processor

MIT Coop Store – Massachusetts Institute of Technology student bookstore

SimplePay – Nigeria’s most popular web and mobile-based wallet service

SFU bookstore – Simon Fraser University in Vancouver, Canada State Republican Party – First State Republican Party to accept bitcoin donations (https://www.lagop.com/bitcoin-donate)

mspinc.com – Respiratory medical equipment supplies store

Shopify.com – An online store that allows anyone to sell their products

Famsa – Mexico’s biggest retailer

Naughty America – Adult entertainment provider

Mexico’s Universidad de las Ame?ricas Puebla

– A major university in Mexico

LOT Polish Airlines – A worldwide airline based in Poland MovieTickets.com – Online movie ticket exchange/retailer

Dream Lover – Online relationship service

Lionsgate Films – The production studio behind titles such as The Hunger Games and The Day After Tomorrow

Rakutan – A Japanese e-commerce giant

Badoo – Online dating network

RE/MAX London – UK-based franchisee of the global real estate network

T-Mobile Poland – T-Mobile’s Poland-based mobile phone top-up company

Stripe – San Francisco-based payments company

WebJet – Online travel agency

Green Man Gaming – Popular digital game reseller

Save the Children – Global charity organization

NCR Silver – Point of sales systems

One Shot Hotels – Spanish hotel chain Coupa Cafe? in Palo Alto