Supreme Court of India has cancelled the ban on Cryptocurrency and is legal now.

The Supreme Court on Wednesday cancelled the Reserve Bank's two-year-old circular allowing trading in crypto currency. In the era of internet and smartphones, the trend of crypto currency has increased in the last few years. 

Let us know what is crypto currency and how it works.

CRYPTOCURRENCY IS A FORM OF DIGITAL CURRENCY

It is a digital currency and is not linked to any government or any bank. If a user sends cryptocurrency to the main record in public ledger, then its record is through encryption ie in sign language. All other transaction records cannot be decoded.  Hence it is called cryptocurrency.

BITCOIN IS CURRENTLY THE LARGEST CRYPTOCURRENCY IN THE FOREFRONT.  

The record of bitcoin is maintained in the public ledger. Since 2009, all transactions have been saved in the public ledger. All the records of the transaction are kept in multiple blocks. Hence they are also called blockchains.

BITCOIN MINING IS DONE BY COMPUTER CPU

The power of a computer's CPU is used to maintain the data of a bitcoin transaction.  Bitcoin has software installed in the CPU.  This software complex performs encryption for bitcoin by performing mathematical calculations. Anybody can do mining through high end CPUs.

WHY DID BITCOIN BECOME SO VALUEABLE? 

• Bitcoin was legalized in Japan.  Since then, its value has increased by more than 60%.

• It is considered to be quite safe for transactions.There is no risk of hyper inflation due to lack of control over it.

• Transaction costs are low due to lack of regulation.

UP To 50% INCREASE IN BITCOIN THIS YEAR 

Bitcoin has gained 50% this year.  For the first time since October 2019, bitcoin reached $ 10,000 in the previous days.  The current value is $ 8,771 (Rs 6.40 lakh). 

The second crypto currency has also remained strong this year. The value of Ethereum has doubled.

HIGH VOLATILITY DUE TO HIGH VOLATILITY

Many people still do not know about bitcoin or digital currency.  There is more volatility in it. Bitcoin currently has a limit.  According to the current structure, the number cannot be more than 21 million bitcoins.