Recently, there has been a great deal of discussion about Bitcoins being the new age money, constantly picking up prominence over the world. For individuals who don’t know about this new-age money, a Bitcoin is a set of digital code which is generated through a process called mining.
Bitcoin perse is nothing but a strip of code but has been given the status of currency all around the world because like any other currency it is used for trading, its value fluctuates on a daily basis and it is also used for making payments internationally. However, unlike conventional currencies, Bitcoins are limited in numbers. Only 21 Mn Bitcoins can be generated, out of which close to 17 Mn has already been generated.
The entry of new blockchain currencies, beginning with Bitcoin and others, is paving the way for a new world of specialised, managerial and technological innovations leading to increased opportunity for startups and entrepreneurship. Until a year ago, only a handful of startups were working in the area of Bitcoin and most of them were running exchanges. However, as Bitcoin price has surged nearly 1100% over the last year, it has got the attention of the who’s who of the technology industry.
Today Bitcoin stands at a staggering value of more than $11,000.
Furthermore, this isn’t only a wide perspective of the whole world – the situation in India is getting pace as well. There has been a fast rate of development in digital money exchange, and also the number of new companies that are engaged with it. India has seen a growth of 250% in Bitcoin userbase after demonetisation.
At present, more than 1 Mn citizens of India are acquainted with cryptocurrency and are dealing with trading of Bitcoin which in the coming years will reach nearly 10-15 Mn users. In light of this sudden rise in the number of users, the Indian Government appointed a board of trustees to investigate methods for directing the exchanging of Bitcoins and different cryptographic forms of money in the nation.
These improvements substantiate the development of Bitcoin utilisation in India as the government was ignoring cryptocurrencies after RBI issued a circular warning about digital currencies way back in 2013. Regardless of whether there has been lack of strong efforts from the administration, new businesses have volunteered to set up the managerial framework that the cryptographic money advertises in India needs.
Apart from exchanges, new businesses in the line of cryptocurrency have emerged such as-:
- Crypto Consultant
- ICO marketers
- Hedge Funds
- Blockchain startups
- Crypto Exchanges
Challenges Cryptocurrency Startups Face In India
Considering that the appropriation of Bitcoin is still in its early stages in India, there will undoubtedly be a lot of difficulties that startups in the area of cryptocurrency space are going to face.
One of the main challenges that will be faced by the startups is with regard to some legitimate and political aspects prevailing in India.
The absence of regulatory framework in India in the digital money field has impacts on both sides of the range. Like any unregulated area, digital money at present has exceptionally obscure constraints on what should be possible with it. Also, that prompts the feeling that digital currency is unlawful in the nation.
As an outcome, general adoption is low. However, people need to understand that lack of laws or regulatory framework does not make anything illegal, rather it means that until a regulatory framework is placed. it can be said that it is “not illegal” in India.
The current exchanges operating in India such as Zebpay, Coinsecure, etc. are working on self-regulation framework where they are doing all the possible measures which should be required by any other company if a legal framework was in existence.
Since Bitcoin can influence fundamentally the monetary aspects of the community, there may not be a considerable measure of political difficulties, yet the controllers need to foresee its impact before making any rules for its utilization. The most difficult part would be specialised, as it is an exceptional idea and a bit too specialised.
Another point where cryptocurrencies face hindrance is dealing with cash and the absence of a unified trade. This prompts numerous trades and exchange motors which employ their own technical specialized particulars and thus, a unique rate of refreshing the trade rates.
Regardless of whether we pass by the presumption that the rate of trade is refreshed at a similar rate over these discrete trades, a brought together trade would have the capacity to give a solitary far-reaching picture of digital money exchange.
At the point, even fascinated users of digital currency confront the issue of the absence of liquidation. Interest in digital currency in India is hard to sell because of the absence of benefits that can be availed by use of cryptocurrencies.
Actually, the main critical way one can make a benefit using digital money is on trades. Because of these components, financial speculator assumption isn’t completely in the support of cryptocurrency startups right now.
Digital currency at the present time is a very perilous game because of its sudden surge in past one year, the same curve was seen in 2013-14 when it rose around 1100% in one year and then crashed due to Mt. Gox exchange issue. Stories of individuals printing cash overnight can impact anybody into trusting that digital money is the path forward.
Which it is, yet not making a course for profit. In the event that you take a gander at the value rates of digital currency, be it Bitcoin or Ethereum, the instability plainly shows that it isn’t a shrewd choice to put resources into cryptographic money in the event that you don’t comprehend the way the market works.
The applicability of these cryptocurrencies is not rising, although the price is surging. Bubble or not, only time can tell but the sudden surge has surely got the attention of hundreds of users in India.
Then again, from an innovation perspective, cryptographic money in India would represent no extra dangers that paper cash and wire exchanges don’t as of now posture. Thus, the endeavours of these new startups in the cryptocurrency space and the ensuing enactment that is being chipped away at this very moment may open another measurement of payments and exchanges in India.