Bitcoin is here to stay
Bitcoin, the first decentralized digital currency in the world has created huge ripples in the field of financial transactions. Since its inception in year 2009, it has garnered attention from the highest and the lowest minds of the earth. It can be used not only as virtual currency but also as an attractive investment vehicle. The ease of transaction, no extra transaction fee by merchants and enhanced
security due to encryption stake its claim as an alternate form of currency stronger. Further, it cannot be manipulated or stolen by any person, entity or organization, which makes it extremely safe and reliable form of transaction. Serial Entrepreneurs like Mark Cuban have changed their stance and have backed cryptocurrencies. Even philanthropists like Bill Gates have backed the rise of bitcoins as the alternate form of currency. Countries like United States have installed more than a 1000 bitcoin dispensing ATMs followed by Canada and United Kingdom.
So, is the bitcoin just like the tulip flower bubble in the 17th century? Or is it something as disruptive as the microprocessor? Experts like Mr. Raghuram Rajan, the ex-RBI Governor has indicated that bitcoins can be used in India provided that a legislation is implemented that would subject cryptocurrencies to more regulation and change tax-reporting requirements without stifling innovation. Furthermore, Bitcoins eliminate the middlemen which puts downward pressure on transaction costs. Regulating the bitcoins would help in building credibility of cryptocurrencies and would be an important step towards financially sustainable, inclusive and transparent society.
I did a project on Bitcoins as part of a mandatory course on Business Research Methodology at SPJIMR. As per the primary research conducted and its analysis we concluded that preference to use any payments option depends on factors such as non-reversible nature of transactions, transparency, and low transaction costs, all of which are served by bitcoins which is the reason why there is a huge surge in trade volumes. A new report by the Deloitte Center for Financial
Services predicts that the transaction volume of bitcoins can reach the scale of the ACH network, which processes 23 billion transactions annually, by 2025.
Bitcoin promises to be a universal currency, electronic cash that could be sent around the globe in minutes and that would work as well in New Delhi as it does in New York. Bitcoin, like any other asset such as gold and stocks, can be traded and regulated. RBI and financial institutions should keep a watchful eye on any ransomware and ICOs that prove to be a threat to exchequer money and financial sovereignty of the nation. A regulatory framework needs to be established to prevent black marketers who want to do business away from the government’s watchful eye and are gleeful at any sign of Bitcoin’s impending triumph over the financial system. The free flow of capital is a financial right that everyone should have and bitcoin serves exactly that purpose. It has qualities that make it a powerful currency, store of value, and payments network. The Aristotelian way of defining currency in terms of durability, portability, divisibility and having an intrinsic value is long gone and a new set of lenses have to be worn by all of us to have a fresh perspective on bitcoins.
security due to encryption stake its claim as an alternate form of currency stronger. Further, it cannot be manipulated or stolen by any person, entity or organization, which makes it extremely safe and reliable form of transaction. Serial Entrepreneurs like Mark Cuban have changed their stance and have backed cryptocurrencies. Even philanthropists like Bill Gates have backed the rise of bitcoins as the alternate form of currency. Countries like United States have installed more than a 1000 bitcoin dispensing ATMs followed by Canada and United Kingdom.
So, is the bitcoin just like the tulip flower bubble in the 17th century? Or is it something as disruptive as the microprocessor? Experts like Mr. Raghuram Rajan, the ex-RBI Governor has indicated that bitcoins can be used in India provided that a legislation is implemented that would subject cryptocurrencies to more regulation and change tax-reporting requirements without stifling innovation. Furthermore, Bitcoins eliminate the middlemen which puts downward pressure on transaction costs. Regulating the bitcoins would help in building credibility of cryptocurrencies and would be an important step towards financially sustainable, inclusive and transparent society.
I did a project on Bitcoins as part of a mandatory course on Business Research Methodology at SPJIMR. As per the primary research conducted and its analysis we concluded that preference to use any payments option depends on factors such as non-reversible nature of transactions, transparency, and low transaction costs, all of which are served by bitcoins which is the reason why there is a huge surge in trade volumes. A new report by the Deloitte Center for Financial
Services predicts that the transaction volume of bitcoins can reach the scale of the ACH network, which processes 23 billion transactions annually, by 2025.
Bitcoin promises to be a universal currency, electronic cash that could be sent around the globe in minutes and that would work as well in New Delhi as it does in New York. Bitcoin, like any other asset such as gold and stocks, can be traded and regulated. RBI and financial institutions should keep a watchful eye on any ransomware and ICOs that prove to be a threat to exchequer money and financial sovereignty of the nation. A regulatory framework needs to be established to prevent black marketers who want to do business away from the government’s watchful eye and are gleeful at any sign of Bitcoin’s impending triumph over the financial system. The free flow of capital is a financial right that everyone should have and bitcoin serves exactly that purpose. It has qualities that make it a powerful currency, store of value, and payments network. The Aristotelian way of defining currency in terms of durability, portability, divisibility and having an intrinsic value is long gone and a new set of lenses have to be worn by all of us to have a fresh perspective on bitcoins.
Comments
Post a Comment