The Bulletin of the Lok Sabha was issued on 23 November. And it created a disturbing environment in the crypto market of India. The bulletin said that the government is going to bring a law on cryptocurrencies in the Parliament session. As soon as the news spread, about 100 million crypto investors in India got panic. At the same time, the crypto market started falling. The next day, bitcoin, the most popular cryptocurrency, fell by up to 17%.
It is just like the rupee, dollar or any other currency. The only difference is that it is digital. That is, you cannot keep it in your pocket like a note or coin. This whole currency is made of blockchain technology based on the principle of cryptography, hence it is called cryptocurrency.
A private cryptocurrency is a currency whose transaction information is not public. That is, you have no way of knowing what is going on with that currency because you are unable to investigate its background. A public cryptocurrency is one whose transaction information is publicly available. Because of this, their background check can be done. It is more reliable.
However, it will be necessary to understand how private cryptocurrencies will be defined in the bill that the government will introduce. All types of cryptocurrencies can be given private status if the government wants.
The control of any government is limited to its country. But the world of the Internet has no boundaries to it. No one knows what someone is doing on which server on the Internet. Also, crypto is in encrypted form. It has a lot of value in the international market. That's why the government can never completely ban it. Even if the government bans it, people can still trade it in different ways. One of the specialities of crypto is that neither government nor the bank nor any one person has control over it.
Also, there are most such cryptocurrency exchanges, which are not even registered in India. Even if the Government of India makes a law, it may not make much difference to them.
Cryptocurrencies are created through mining. This is virtual mining, in which an extremely complex digital puzzle has to be solved to get the cryptocurrency. Solving this puzzle requires your own algorithm as well as a lot of computing power. So it can be said that anyone can make cryptocurrency. But in practice, it is very difficult to make it.
When you talk about rupee, dollar, yen or pound, it is controlled by the central bank of the issuing country. How much and when this currency will be printed, they decide by looking at the economic condition of the country. But no one has control over cryptocurrencies, it is a completely decentralized system. No government or company can control this.
