{"id":32196,"date":"2024-11-14T18:11:10","date_gmt":"2024-11-14T12:41:10","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=32196"},"modified":"2024-11-14T18:11:12","modified_gmt":"2024-11-14T12:41:12","slug":"bitcoin-hits-all-time-high-after-trump-win","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-11-2024\/bitcoin-hits-all-time-high-after-trump-win","title":{"rendered":"Bitcoin Hits All-Time High After Trump Win"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bitcoin, the world&#8217;s largest cryptocurrency, has soared to an all-time high after Donald Trump&#8217;s historic win in the US presidential elections.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Cryptocurrency?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cryptocurrency is a type of <strong>digital or virtual currency<\/strong> that uses cryptography for security, making it difficult to counterfeit or double-spend.\u00a0<\/li>\n\n\n\n<li>It operates on decentralized networks based on<strong> blockchain technology<\/strong>\u2014a <strong>distributed ledger<\/strong> enforced by a network of computers.\u00a0<\/li>\n\n\n\n<li>Cryptocurrencies are typically <strong>not controlled by any central authority<\/strong>, which makes them theoretically immune to government interference or manipulation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features of Cryptocurrency<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Decentralization:<\/strong> Most cryptocurrencies operate on decentralized blockchain networks, ensuring that no single entity has control over the entire network.<\/li>\n\n\n\n<li><strong>Security: <\/strong>The use of blockchain technology also adds a layer of protection through consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).<\/li>\n\n\n\n<li><strong>Transparency and Anonymity:<\/strong> Blockchain technology allows for transparent record-keeping of transactions that are visible to all participants on the network.\n<ul class=\"wp-block-list\">\n<li>Despite this, cryptocurrencies often offer a degree of user anonymity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Accessibility:<\/strong> Cryptocurrencies can be transferred across borders quickly and efficiently without the need for currency conversion or significant fees.<\/li>\n\n\n\n<li><strong>Ownership: <\/strong>Cryptocurrency holders have full ownership of their digital assets, which are stored in digital wallets secured by private keys.\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Blockchain technology<\/strong><br>&#8211; Blockchain technology is a <strong>decentralized, distributed ledger system<\/strong> that records transactions across many computers in a way that ensures security and transparency.<br>&#8211; Blockchain networks rely on <strong>consensus algorithms to validate transactions <\/strong>and maintain network integrity.\u00a0These mechanisms ensure that <strong>only legitimate transactions are added<\/strong> to the chain.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges with Cryptocurrency<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regulatory Uncertainty: <\/strong>The lack of clear, consistent regulation stifles innovation, leads to fragmented markets, and leaves investors vulnerable.<\/li>\n\n\n\n<li><strong>Market Volatility:<\/strong> Cryptocurrencies are known for their price swings, which can result in substantial financial loss.<\/li>\n\n\n\n<li><strong>Lack of Consumer Protection:<\/strong> Most cryptocurrency transactions lack consumer protections. This absence led to fraud, scams, and loss of funds with limited recourse for victims.<\/li>\n\n\n\n<li><strong>Environmental Impact:<\/strong> The energy-intensive nature of <strong>proof-of-work mining, <\/strong>especially in Bitcoin, raises concerns about its sustainability and environmental footprint.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Cryptocurrency Landscape<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Taxation Policies: <\/strong>The Indian government imposed a<strong> 30% tax <\/strong>on income from transfers of virtual digital assets in<strong> 2022, <\/strong>along with a <strong>1% tax deducted at source (TDS) <\/strong>on each transaction.\n<ul class=\"wp-block-list\">\n<li>These stringent measures have dampened domestic enthusiasm for cryptocurrency trading.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regulatory Uncertainty:<\/strong> In <strong>2018<\/strong>, the <strong>Central Board of Direct Taxes <\/strong>proposed a ban on cryptocurrencies, and the Reserve Bank of India (RBI) restricted banks from facilitating cryptocurrency transactions labeling it as a <strong>\u201cmacro-economic risk.\u201d<\/strong>\n<ul class=\"wp-block-list\">\n<li>This decision was overturned by the Supreme Court in <strong>2020.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Comprehensive Regulation: <\/strong>Clear, balanced policies that delineate the legal status of cryptocurrencies while addressing security concerns.<\/li>\n\n\n\n<li><strong>Investor Education:<\/strong> Initiatives to inform investors about the risks and benefits of digital assets.<\/li>\n\n\n\n<li><strong>Collaborative Frameworks:<\/strong> International partnerships for coordinated regulation and technical expertise.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/bitcoin-donald-trump-us-elections-win-india-9667534\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin, the world&#8217;s largest cryptocurrency, has soared to an all-time high after Donald Trump&#8217;s historic win in the US presidential elections.\u00a0<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32196","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=32196"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32196\/revisions"}],"predecessor-version":[{"id":32197,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/32196\/revisions\/32197"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=32196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=32196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=32196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}