What Is The Environmental Impact Of Cryptocurrency?

The negative environmental impact of cryptocurrency mining is significant, and the problem is only getting worse. Bitcoin Motion uses a lot of energy, which means that it consumes a lot of natural resources. The need for these natural resources in the ever evolving success marked by the bitcoin period is increasing as more and more people are taking up cryptocurrency mining as a hobby or profession. As a result of this increased demand for resources, there have been some severe consequences for the environment.

Reasons Why Popularity Of Bitcoin Is Getting On Its Peak

Cryptocurrency mining is a process that involves the use of heavy-duty computers to solve complex mathematical equations. The reward for solving these equations is cryptocurrency, which can then be exchanged for goods and services. While the benefits of cryptocurrency mining are obvious, it helps you rise your income potential! So, are you ready to scale up your investment journey with bitcoin trading platform, we have every cryptocurrency you are looking for.

The mining equipment used in this process uses a lot of electricity, which means that there is high carbon emission associated with it. Mining operations are very energy intensive, as they require cooling systems and high levels of computing power. The main reason why cryptocurrency mining uses so much electricity is because it requires specialized hardware that are designed specifically to solve algorithms and crunch data.

Each ASIC is customized to perform these tasks more efficiently than conventional processors, but they require an incredible amount of power to operate – and this means that they run hot enough to need active cooling systems, which generate heat themselves and require even more electricity than normal operations would need on their own.

Additionally, mining operations can have an impact on pollution levels in nearby areas due to the release of toxic chemicals from cooling systems used in these operations. These chemicals include:

  • Arsenic compounds from cooling water treatment plants
  • Mercury compounds from fluorescent lights in data centers
  • Cadmium compounds from batteries used for backup power supplies in data centers

Consequences of Crypto Mining

The rise of cryptocurrency mining has come with some serious environmental consequences:

  1. Depletion of natural fuels: Because cryptocurrency mining relies on using a lot of electricity, this has caused coal production to increase, which in turn leads to an increase in the use of fossil fuels. This also creates an increase in carbon emissions and pollution. Mining Bitcoin is a costly process. It requires huge amounts of energy to complete the complex calculations required to mine each block. This has led to an increase in mining farms that rely on renewable energy, as well as an increase in the use of hydroelectric power stations.
  2. High carbon emission: The CO2 emissions produced by cryptocurrency mining are increasing at such a rapid rate that they are outgrowing other sources such as transportation and manufacturing. This is having a negative impact on the environment and is also causing global warming, which can lead to more severe weather conditions like hurricanes or tornadoes, as well as rising sea levels which will affect coastal areas around the world. However, this is not enough to counteract the environmental impact of cryptocurrency mining. The carbon emissions generated by a single transaction are estimated to be around 3 kg CO2—or about as much as driving 15 miles in an average vehicle.
  3. Increased pollution: As mentioned above, there are lots of CO2 emissions being released into the atmosphere because of cryptocurrency mining activities; these emissions cause smog which can lead to respiratory problems such as asthma attacks or chronic obstructive pulmonary disease (COPD). This is combined with high levels of pollution from other sources such as coal-powered plants and smokestacks from factories. Mining operations also cause environmental damage through deforestation and habitat destruction for endangered species such as tigers and rhinos. Another source of pollution comes from mercury which can cause brain damage if ingested orally or absorbed through skin contact; this substance is found in many types of electronics like smartphones and laptops that people use every day without knowing how dangerous it really is!

crypto mining in Armenia

The way ahead

The world of cryptocurrency mining is not a friendly one for the environment. Mining uses an enormous amount of electricity, which is generated by burning fossil fuels. This results in high carbon emissions as well as other forms of pollution. Additionally, mining requires a lot of resources to keep up with the demand for new coins and tokens.

Mining also creates waste products such as heat sinks that contain metal particles from soldering; these can be recycled into new products like jewelry or other metal objects when they’re no longer usable for their original purpose.

Building Metaverse with Blockchain, VR and AR

We all have become quite attached to the digital world as it not only provides a great medium to go beyond the orthodox methods but also helps us grow holistically in the scenario. The increased relevance of cryptocurrency trading in the digital market is just one facet of the overall trend. It is high time for the users to capitalize on the opportunity through the trustpedia.io/crypto/ to witness the pool of opportunities that is available today. The advent of blockchain technology, AR, and VR has only propelled such activities in the digital market. This blog aims to reflect on the idea of building the kind of Metaverse that people had anticipated while exceeding the expectations through the implementation of AR, VR and blockchain into it.

How to Build Metaverse with blockchain, VR, and AR

Unmatched and refined experience

The pace at which Metaverse is currently thriving is a spectacle in itself, as none of the emerging technologies have been able to spread as much impact as Metaverse did. This corroborates the fact that people are more drawn toward the kinds of technologies that reduce the gap between physical and virtual reality. The constant and unending activities on Metaverse are growing in relevance and so has been witnessed in other emerging technologies as well.

The blockchain, augmented reality, 5G networks, cloud computing, virtual reality as well as 3D content creation have become a staple in the digital ecosystem. Furthermore, the idea behind such disruptive technologies is also becoming clearer as to where the world and technology is headed. The convergence of such aerodynamic technologies is bringing a significant change in the way people socialize, interact, transact, entertain and work with each other.

The progress that lay ahead

The center of the conversation is primarily dominated by the immersive experience that Metaverse aims to facilitate for its users. In addition to this, AR and VR are going to play an indispensable part in this scenario. The specialty of AR to usher in the digital objects into the real world, which is accessed by the smart glasses and smartphones, is worth paying attention to.

Moreover, a large majority of experts believe that the overall potential that AR carries far outweighs what VR has to offer. The underlying reason for such a perception is that humans tend to grow weary of a completely virtual environment. They rather prefer to stay in a hybrid model of physical and virtual reality.

There is no denying the fact that prominent AR applications such as Google Maps’ function of finding the direction of Pokemon Go have been in the market for quite some time now. However, the wider adoption of such applications was somehow limited to an extent. It happened because of an increasing rate of privacy concerns, paucity of profitable applications, and increased cost of required devices.

Nonetheless, the hopes are high for reforming and restructuring such a scenario with the latest developments that have been witnessed in the blockchain ecosystem. AR clouds can underpin such AR applications, and NFTs can easily facilitate the users with unique ownership of the required digital assets. Also, the open-source creation of content can also serve the purpose quite seamlessly.

What is in store for the users?

3D digital twins and AR clouds have been successfully supplemented with information and virtual objects today. They are almost similar to the apps and websites as they incorporate the feature of data streaming. They also make use of other prominent geological features for delivering valuable AR content in the physical environments, and it is all done remotely. Organizations can easily leverage this golden opportunity of delivering refined experiences to their users through the growing prominence of AR. They can do so in an immersive fashion instead of making users search it on some internet browser or applications.

Among other digital assets, NFTs have also earned a great reputation in the Metaverse. This is indicated by the fact that leading brands like Walmart, Adidas, and Nike are currently dabbling in this technology. They aim to develop new and untapped business models for their respective digital play. NFTs are believed to have gained maximum traction in augmented reality.

What Are The Benefits Of Decentralized Finance?

Decentralized Finance, or “DeFi” for short, is an entire finance industry whose alternative class of finance and lending operations is powered by the blockchain. Along with that comes all the features and benefits of the blockchain that have made cryptocurrencies, like Bitcoin (the first ever currency to operate using a blockchain), such highly valued and sought after commodities by online users, merchants, and investors.

But cryptocurrencies like Bitcoin and its silly, though well-capitalized cousin, DogeCoin (DOGE’s multi-billion dollar market cap is no joke even if the meme coin is), were created with a more simple purpose in mind than finance. They were designed from the beginning as simple payment remittances services (think PayPal or CashApp), with basic chequing and savings services for anyone who “holds” money at a bitcoin address for the long term.

A cryptocurrency user who spends out of a crypto wallet they have to pay for consumer goods and services— or purchases inventory or makes payroll for their small business using crypto— is getting all the benefits of blockchain as a decentralized, peer-to-peer platform, and any of the features and benefits unique to the crypto they’re using (such as more privacy, faster transactions, or lower fees).

But they’re simply making payments or holding their money on a blockchain platform. They’re not really engaging in finance, which is lending or borrowing at an interest rate that discounts the value of future money to the present. That’s where DeFi comes in.

overview of DeFi

What is DeFi? Read on for a brief overview of this exciting new frontier in the fast-growing cryptocurrency industry.

What is Decentralized Finance or DeFi?

Decentralized finance connects lenders with borrowers to transact loans over a decentralized, peer-to-peer (P2P) blockchain. The features of blockchain can be remembered using the acronym RIPCORD. A blockchain is revolutionary, immutable, public, collaborative, open, resistant to censorship, and decentralized. DeFi makes it possible for borrowers and lenders to meet and transact loans over a platform that is controlled by code, and not by institutions.

DeFi vs Crypto

There is a lot of overlap between DeFi and Crypto in that they share the characteristic features of the blockchains they operate on, but they’re not exactly the same. One way to think of it is that all truly DeFi tokens and platforms are a kind of crypto, but not all crypto is DeFi.

Decentralized finance is an entire industry within the broader cryptocurrency industry. It started out as a sub-sector of the crypto industry, with less than a billion in TVL (total value locked) in 2018, and over $100 billion in TVL by the end of 2021 at the height of that year’s bull market.

The Benefits of Decentralized Finance

Decentralized Finance offers users on both the lending and borrowing side enormous benefits that were not possible before the advent of blockchain on the Internet in recent years. With peer-to-peer lending, DeFi borrowers can gain access to loans without the roadblocks to access traditional finance that have stood in the way of investors with the capital to invest in new projects, who want to use finance for leverage to get a greater reward for their investment.

The Risks of Decentralized Finance

There are risks with decentralized finance, as there are with any kind of financing, even through traditional channels, and as there are with any online commerce over new and innovative platforms. A lack of regulation is a feature and a bug in this space, with a greater risk of loss to hackers, scams, and “rugpulls,” wherein a new project goes under. There are also high collateral requirements in much of the DeFi lending world for obvious reasons.

Where can I exchange COTI to CAKE

DeFi Advantages and Disadvantages

Having to put up more collateral for loans, having less or no regulatory authority for protection of your funds, and having to have a high degree of technical know-how and the ability to navigate around the fast-growing decentralized finance platforms are all disadvantages. But players in this space trade them off for more control over their money, more access to liquid finance pools and lending peers on the networks, and more trust in code, platforms, and apps that they have earned the right to trust with their own technical expertise and research.

DeFi vs. Traditional Finance

Traditional finance operates through massive, slow-moving, highly-regulated (did I mention slow-moving?) lending institutions, often subsidiary operations of big central bank branches, lending fiat money to qualified lenders that meet all the institution’s, central bank’s, and government’s understandable, but cumbersome regulatory requirements. Traditional finance simply wasn’t designed to meet the needs of the typical DeFi borrower investing and trading in the cryptocurrency industry in 2022, and it can’t.

Examples of Decentralized Finance Cryptocurrency Tokens

Here is a list of some of the most popular decentralized finance cryptocurrency tokens by market cap around the date of publication of this article: Terra (LUNA), Lido Staked Ether (STETH), Wrapped Bitcoin (WBTC), Dai (DAI), Chainlink (LINK), Uniswap (UNI), Frax (FRAX), cETH (CETH), PancakeSwap (CAKE), and The Graph (GRT).

Is Solar The Next Big Thing For Cryptocurrency?

With Bitcoin going big, mining has become a costly and intense exercise. It takes a lot of computing power to validate the millions of transactions that happen on a daily basis. This is why environmentalists are down on Bitcoin as a viable mainstream currency. Mining Bitcoin uses the same electrical output as the entire country of Switzerland.

If Bitcoin is adopted by the masses as a legitimate currency, then there will need to be even more servers working overtime to compute and complete the encryptions that are the backbone of the currency.

With climate change front and center in many concerned citizens’ minds, it stands to reason that Bitcoin and cryptocurrency in general would need to greenify if they stand a chance at growing.

bitcoin-servers

In this article, we will go over what the future could mean for Bitcoin as it attempts to go green and use solar energy to power itself.

Lines between price and profit

A few years ago Bitcoin was generally stable in its value around $2,000 per coin. This meant that for miners to make a profit they needed to find a cheap way to power the servers to do the computing. Once these companies have mined the cryptocurrency they usually sell it onto the open market to be traded by investors who are looking to convert cash to Bitcoin.

Luckily for them, Bitcoin servers are rather portable in the sense that miners could set up shop anywhere in the world where the cost of energy was cheap.

Now that people are more concerned about the environmental cost of this mining it was not looking good for Bitcoin as a viable currency. At the time, renewable energy was more costly than fossil fuels so it would have cut massively into the profit margin and possibly even seen some losses.

Now, Bitcoin shattered the $20,000 mark per coin and at the same time, the cost of using solar and wind power has dropped dramatically. Suddenly, it is feasible to use solar-powered Bitcoin mining.

This could allow Bitcoin to be adopted by the masses and grow as a currency and still be the responsible thing for people concerned about the environment.

It can go anywhere

There are many places all over the world from deserts to regions around the Equator that get a lot of sunlight year round. And there isn’t much of an economy in those areas which makes it an ideal location for Bitcoin mining centers.

crytpocurrency-mining

They can use solar farms to power the servers and keep costs low since there is no shortage of sunlight. The long days and cloudless skies makes the price per kW hour in those areas very cheap and can compete with fossil fuels.

Another benefit is that bringing cryptocurrency mining centers to those areas can lift the economy. There will be a lot of jobs in construction and maintenance where there was little possibility of work previously.

*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.

5 Sustainable Blockchain Players To Pay Attention to in 2022

There are many blockchain players to keep an eye on this year, including Algorand. However, there are five, in particular, to really pay attention to. If you do, you’ll notice that sustainability is a common theme across some industry players.

1. Cardano

In regards to market cap, this is among the top five overall crypto projects. At the time of writing, it has one of the largest blockchains to actually utilize a proof-of-stake consensus mechanism with success. In fact, the energy usage Cardano goes through is likely just 0.01% compared to Bitcoin.

environmentally friendly blockchain players

The market has a lot of appreciation for Cardano deploying social projects and environmentally-conscious operations. One example is the Cardano Forest run by the non-profit Cardano Foundation, as it has planted over a million trees. Cardano hopes to be an overall carbon-negative network.

2. Concordium

This Swiss blockchain is both proof-of-stake and eco-friendly. It employs distinct ID layers at a protocol level. This combination of privacy features and compliance makes the ID layer a crucial connection between the virtual blockchain world and the compliance with regulations that traditional businesses have to cater to.

A non-profit foundation supports it. It also has a science team internally researching sharding principles, consensus, and ZK proofs. This blockchain network is a simple one, but it also has cross-chain interoperability.

3. Energy Web Chain SolarCoin

This is a rather novel approach in regard to cryptocurrency. A SolarCoin is created for each Megawatt hour that is generated using solar technology.

The idea behind this blockchain is to reward those who produce solar energy. Solar plant owners have to submit third-party-verified certificates of their energy generation in order to claim their rewards.

4. Solana

Of all the digital currency in the current market, Solana might be growing faster than anyone. In fact, its support for smart contracts might make it a primary competitor to even Ethereum. This network is proof-of-stake. That means that Solana security is not reliant upon using energy. Estimates suggest that a Solana transaction uses less energy than a pair of Google searches. It might even be 20 times less energy than you use charging your phone.

The Solana Foundation is aiming for carbon neutrality in the very near future by partnering with Watershed for refrigerant destruction. This project aims to fund the permanent destruction of HFC and CFC refrigerants. Both greenhouse gases are more than 10,000 times as powerful as CO2. They’re doing this to offset the carbon footprint of the blockchain in the future.
sustainable-blockchain-companies

5. Stellar

This decentralized protocol using open-source code has an inbuilt exchange to transfer digital currencies to actual fiat money. This can happen domestically or even over international borders. Their cryptocurrency is named the lumen. This blockchain forked off of Ripple and started in 2014 hoping to bridge the gap separating digital currencies and traditional financial institutions. Since this blockchain doesn’t rely on mining, its carbon footprint is lower than others.

Bottom Line

Many detractors or opponents of cryptocurrencies usually feature the same arguments, including lack of consumer protections, financial instability, and susceptibility to volatility. The amount of power used and the negative impact on the environment that mining and transactions take are other arguments, but these five players are doing what they can to change that.

What Are The Latest Bitcoin Happenings In 2022 That You Need To Know?

The world is witnessing several changes over the last few decades. With the continuous adoption of advanced technologies, things are more profitable for humans. Among those technical advancements, the profit of online currency is one of the best improvements. Today people are investing their money in the world of Bitcoin Bot. Here one can invest and get high profits in real-time.

bitcoin-mining

Bitcoin is a top example of how technology has made it best for people to earn their bread. All it requires is the proper knowledge of bitcoin and its market. This online currency depends on the market. Also, the price keeps changing. So, any person looking towards earning from bitcoin needs to be sure of understanding the market. Investing in the bitcoin industry may let you profit sometimes. But when things get wrong in your favour, the number of losses will be much higher. Let us discuss the latest information regarding bitcoin.

What is Bitcoin?

Bitcoin is a type of digital currency discovered in the year 2009. This online currency was created by one of the most extraordinary people. He had immense knowledge of the digital world, known as Satoshi Nakamoto.

However, no one knows the real identity; it is a mystery. No one has the exact information about this person and doesn’t know anything about him.

The reason behind preferring and investing their money in the world of bitcoin is the easy earning process. Any person capable of understanding the market can make profits here. So, the profit rate is why people prefer investing in this place and want to buy Bitcoin.

Happening and predictions of the bitcoin world in 2022

  • The Bitcoin world is witnessing more regulation compared to last year. Several countries have started making certain policies for the accurate law of this place. Many governments are also looking towards banning bitcoin.
  • Cryptocurrencies have different digital currencies. But almost 70% of the market share is accounted for by bitcoins as one. So, as per the market reports, the value of BTC will fall in the coming years. The key reason behind this is the percentage of new investing and digital currencies such as NFT. Currently, there has been an immense craze among people for supporting in NFT, and it has become one of the most trending digital currencies all over the world.
  • Every day, several new cons are getting launched in the world. Due to such a high presence of digital coins, the dominance of bitcoins is likely to be decreased. With time, people are becoming more aware of the several digital coins, which makes them much more attracted to different other currencies.

Best platform for investing in bitcoin

Though there are several varieties of platforms available in the market, choosing the right and accurate one from such a platform is often difficult. Due to significant security reasons, people cannot understand which one can be the best. So, to make sure your doubts can be cleared, the best platform.

Currently, the demand for this platform has increased a lot in the last few years. Due to its secure environments, people prefer this more. Everyone wants their money to be invested in a place where one is sure of their investments.

Accessible And User-Friendly Bitcoin Wallets

Investing is such a thing that one needs to be more attentive of the platform where they are putting their money in. Several such platforms available in the market have done several types of frauds with a person’s life. So, investing in this place can be a perfect way.

Things to check before investments

One needs to keep an eye on several things before investing in bitcoins; for the best investments, keep checking the button’s prices and related factors. Several factors keep influencing the prices of bitcoins.

The person who has the proper knowledge of the market understanding can earn better in this market. So, such people who are capable and have knowledge of the market have higher chances of becoming the top investor of this place.

Choose the best platform available and increase your chances of earning better profits in this place. It is necessary to check the website’s history before using them for investment needs.

Know The Best Alternative For Finance

The world of financing credits is being transformed by virtual cryptocurrency. Blockchain technology allows for entire breakthroughs, and because cryptocurrencies are fractional, anybody can participate regardless of their financial situation find more information here.

reasons to invest in crypto

How to get started with cryptocurrency?

However, for newcomers, getting started with cryptocurrency might be intimidating. There are so many new phrases to learn that it can feel like you’re learning another language, and unless you’ve looked at such an exchange, you may have felt bewildered among all the technological buttons and glowing red and green numbers.

But don’t be turned off or worried by the cryptocurrency seeking to buy or sell your cryptocurrency. Bitpapa provides user-friendly, trustworthy, and secure access to the exciting world of cryptocurrency. The procedure is straightforward, but just to make sure you’re comfortable, our comprehensive guide will walk you through how to utilize the platform and get the most out of your trading experience.

What exactly is bitpapa for cryptocurrency exchange?

Bitpapa is an effective source for a cryptocurrency exchange that allows users to purchase, sell, and swap dozens of major cryptocurrencies using a variety of payment options.

The platform was meticulously built by a group of specialists from the fields of science and technology, economics, and law, to make crypto accessible to the general public so that everyone can benefit from the freedom, transparency, and fulfillment it represents. Bitpapa also offers a secure multi-currency mobile currency that can be used on both a PC and a mobile device to store your coins.

Why should you go with bitpapa?

Bitpapa has several features and benefits, including:

  • A constantly growing list of distinct virtual cryptocurrencies. Bitpapa strives to update new listings for all of the most prominent coins.
  • Speed – registering for a bitpapa account simply takes a few minutes, and you can start trading in seconds.
  • There are no hidden fees or charges.
  • A variety of payment options are available. Credit/debit payments, money transfers, and more.
  • For keeping your coins as well as sending or receiving payments, a highly secured wallet is offered.
  • Bitpapa is a fully licensed, government-regulated, as well as legally compliant service.
  • Bitpapa offers two-factor authentication (2FA), and funds are kept secure in an offline cold wallet using a variety of organizational and technical security mechanisms.
  • Customer service and exchange are accessible in various languages.
  • You can trade on the go with the platform, which is available for Desktop, Android, and iOS.

What is the best way to get started with bitpapa?

Bitpapa is a quick way to start exchanging virtual currencies; creating an account simply takes a few minutes.

Create a user account

To create unique account just fill the registration form. Simply click the “Get started” button on the bitpapa website’s top right corner.

After that, you must provide your identity (as it stands on your private files) and email address, as well as create a strong as well as unique passcode. Click “Create account” after checking the box to indicate that you are over the age of 18 and agree to the Terms Of the agreement as well as the Privacy Statement.

After that, you’ll receive an email with a link that you must click to validate your email account. You will be directed to a screen where you must enter your phone number.

Enter the OTP you should have received through SMS after pressing the “Submit code” button. You’ve successfully established your bitpapa username once you choose “Verify.”

bitpapa

Confirm your identity

You’ll need to authenticate your identity before you could even trade bitcoins, which just takes a few seconds. On your user profile, click the “Starting the authentication process” button, type in your location, and click “Next.”

Then choose your nation and the sort of identification you want to use for verification. Click “Continue on your phone” to capture images using your phone, then click “Confirm and move ahead.” Next, make sure your webcam can see your face, then click “submit” and complete the on-screen directions.

The process of confirming one’s identity must be completed. This normally takes a couple of minutes, and indeed the status of the verification will be updated immediately once it is completed.

Add money to your account

After your registration has been validated, you can buy cryptocurrencies directly with someone’s credit/debit account, or you can load your bitpapa account with virtual cash first. To do so, log in and go to the top right side of the screen to the “Submit” button. This will display the various deposit options. If you select SEPA, you will be given the information you need to make a bank transfer. After that, go to your internet transactions and set up the exchange using the bitpapa bank account information.

How is bitpapa beneficial for cryptocurrency traders?

To guarantee that your funds are deposited into your wallet, make sure you give the correct registration number. Select the “I finished the payment” button when you’ve completed the transfer. Now you’re ready to begin trading cryptocurrency.

Is bitpapa trustworthy and safe?

Bitpapa is a highly safe and reliable site for buying, selling, and exchanging cryptocurrencies. You may secure your identity with 2-step verification on this platform. It makes it more difficult for a hacker to gain access to your account. So that you can keep your account safe from hacking and theft. Bitpapa has been designed to meet all of your cryptocurrency trading demands. It is a market leader in the management of digital assets such as bitcoin and others. While it is legal to use, the user must ensure a secure, user-friendly, and reliable environment. Bitpapa is most popular because of the reduced errors and highly protected system.

  • Bitpapa enables instant and quickest verification.
  • You can do trading on the same day of signup.
  • 24/7 customer support.
  • Availability of unlimited coin selection.
  • Highly secured and user-friendly platform.
  • The easiest platform to buy, sell, and exchange cryptocurrency.
  • Suited for both advanced and beginners’ traders.

The BIG News of Income Tax on Cryptocurrency Gains in 2022

Didn’t see that coming, did you? Well, a lot of investors, traders & other participants in the crypto industry were taken off guard when the conclusive statement was made by the finance minister of India regarding the tax regime on ethereum trader app. The union budget of 2022 was filled with dynamic changes & announcements regarding the prevalence of digital currency in the country. Considering the rampant increase in the users of cryptocurrency across the world, the governments around the world had their respective takes on this prominent topic. Some embraced it with open arms while others remained firm in preventing their citizens from cryptocurrency to curb the illegal activities being conducted under its pretence.

Income Tax on Cryptocurrency Gains in India

Bitcoin Era explores the intricate details around the taxation system that has been newly introduced in the country. The taxation on crypto gains was inevitable and it is only logical to do what the Indian Government did. Not giving in to the latest trends and maintaining a firm stance against the cryptocurrency’s prevalence, government officials don’t shy away from warning people of the prevailing risks of such unregulated currencies. What does the future of cryptocurrency hold in countries like India where significant taxation on capital gains is a reality? It has become a highly debatable topic in current times.

Capital Gains and Taxation

The process of taxation is still quite ambiguous since it doesn’t clarify some of the predominant areas. But, there is one thing to be kept in mind the process of taxation will be levied according to an individual’s activity along with the treatment that has been embraced by a particular taxpayer. The tax rate will remain unaffected if the income that is generated through an exclusive cryptocurrency transfer is a business income. The recent rates in terms of capital gains are 20% if the capital gain is of long-term nature i.e., 36 months or longer.

On the other hand, the rates will be levied as per each individual if the security is held for less than 36 months. So, it has to be kept in mind before making buying any security and the rates will fluctuate as per individual so that’s another thing to be kept in mind.

Finance Minister Declaration

The Government of India has also proposed that a tax of 30% will be levied on the transfer of digital currency or any cryptocurrency asset. Moreover, the deduction will not be allowed apart from the acquisition cost. However, the government has started to acknowledge cryptocurrency as an asset class along with bringing crypto trading under the purview of legal activity in the country.

In addition to this, such clarification made by the finance minister will hook more people to the government-autopsied crypto trading which will provide a necessary impetus to the overall growth of the industry in the country. This will also facilitate a precise environment for crypto trading that was being conducted on illegal terms earlier.

There is one big shortcoming, however, that the possibility of taking forward the transaction loss in the subsequent financial year will not be entertained by the government. Considering the highly volatile nature of cryptocurrency, it is a quite favorable move for investors. Such announcements were being highly anticipated because the prospects of earning income and registering growth through cryptocurrency are a big deal for the population now.

bitcoin cash

Will crypto prominence be faded by the tax dominance?

Digital assets have gained significant traction in the country and their popularity continues to sail past consecutive milestones effortlessly. The overall volume of trading has also proliferated significantly over the years. All the efforts that have been channelized to put a firm bridle on the pace that cryptocurrency operates with in the country seem to come with full effect. The government is constantly working towards eliminating all the possible facets that serve as a crypto-magnet for the people. This also comes in the form of a 30% slab of tax rate which will undeniably deter a lot of people from transferring any sort of cryptocurrency in the future.

So watch out for the latest trends to stay updated with the dynamic changes that are inevitable in this landscape.

Are You Ready To Invest In Crypto? Check Out 5 Reasons Why You May Not Be!

With all the prevalent cryptocurrency investment frenzy spreading worldwide, people need to take a step back and reassess their financial plans. The mainstream media & governments across the countries gave a mixed response to the prevalence of cryptocurrencies. Does that mean that the latest bitcoin buyer website should be taken with a grain of salt? Am I risking my assets if I am planning to put my time, efforts & resources into cryptocurrency? However, investors would like to differ because of the unfathomable & unprecedented returns that they received in recent years. Many of them even look forward to making quick returns on the investments that they make.

reasons to invest in crypto

Bitcoin Era will help you to see through the intricacies of the crypto industry that you must be aware of. Here are 5 reasons that you need to watch out for:

1. Unprecedented Volatility

It is of no surprise that investing in cryptocurrencies is bound to have unprecedented volatility, nothing like you’ve seen before. It involves greater risks due to the fact that the prices are always volatile. Experts feel that investing in Bitcoin is a highly debatable topic because you have nothing specific to hold onto. To carry out a fundamental analysis of Bitcoin and the associated investments is a taxing task even for the fundamental analysts.

People are constantly investing in such cryptocurrencies based on the limited or totally unpredictable information that is being floated on the internet. Considering that the entire cryptocurrency ecosystem is highly unregulated, people are flocking into it which is pushing its prices way higher than normal which is yet another red flag.

2. Element of uncertainty

Cryptocurrency does not have a definitive origin to base the facts on. The history is also not so much detailed around the topic that it becomes difficult to assess the situations & conduct research. Cryptocurrencies do not fall in the category of “Currency” as it is certainly not supported by any sort of tangible asset. With a complete elimination of government control from the entire mechanism, it is not safe for people to trust the mediums that governments clearly mandate to keep themselves from. It is undeniably a risky business for people to trade in and piles their hopes even further in this digital currency landscape.

3. Half information will cost you a fortune

Cryptocurrency is being treated as a mere bubble that can implode anytime to bring you a host of unfavourable news if you’re already too deep into it. Global bankers consider this reason as one of the predominant causes that people have lost a significant amount of money in trading and earned meagre interest/returns on them. Hence, it is quite prudent to stay away from something that you know is out of your reach. It is better to not know things than to know it all and lose it all. Even retail investors have begun to realize that the entire concept of crypto relies on uncertainty.

4. Regulation out the window

Cryptocurrency is a decentralized format that is susceptible to risks and dangers at any given time. People invest in cryptocurrency just because they get to evade the transaction fees that financial intermediaries usually charge people. There is particularly no governance system like SEBI or grievance redressal platform where you can go to seek help in case of any unfortunate event that you encounter or come across.

bitcoin-trading

If you buy something but the product doesn’t work well, you can always go back to the retailer to claim your loss but that is not the case with cryptocurrency or bitcoin transactions and your money has gone down in the dumps. Moreover, you don’t have anyone to help you out in such dire circumstances.

5. Den of thieves

The crypto industry has evolved into a hub of illegal activities where underground activities run rampant without being accountable to anyone. You also won’t have to reveal your identity while executing a transaction, so technically you won’t even know who are you entering into a contract with. This is the favorite part of cybercriminals that they can always leverage and continue committing crimes undetected.