Monisha Wamankar

Internship Write-up -by Monisha Wamankar • Aim- The aim of the video tutorial was to make one familiar with the world of Cryptocurrency. • How does a currency get its valueA currency gets its value by the trust of people. As a result of Demonetisation, People disowned 500 and 1000 Rs. notes, rather than this if people would have declared demonetization invalid and continued to exchange the same amongst them it would have given rise to a parallel economy. As Indian Economy is based on Ruppe, the US on Dollars similarly, the Parallel economy would have been based on 500 and 1000 Rs. notes. People are responsible for giving the sole value to the currency. For instance, if the majority of the people stop recognizing the worth of 2000 Rs. note, no matter how much Government may assert, there would be no exchanges of goods against it and 2000/- note will stop holding any worth practically. Currency is equivalent to a point system. If you are an Indian and have 100000/- it means that you have 100000 points or in other words, you have done work equivalent to 100000 for Indians. If even half of the majority gets ready to give value to a currency then amongst them we can find persons giving diverse services and eventually a parallel economy could be built. • How did Cryptocurrency originateIts origin can be dated back to 2008 when the US met a Financial crisis. People didn’t pay debt and banks too distributed debts carelessly, as a result, many of the banks were drowned into a huge loss. In order to save the banks and US economy, the government decided to bail them out, means it started printing money to rescue its banks from the catastrophe. As a result, Dollar was in abundance and therefore it started losing its value. Hence common man started facing loss. For instance, if a man owned 1k dollar and the value of Dollar depreciated by 10% then he can now buy goods equal to just 90k dollar and 10k dollar goes in vain which is a huge loss. The outcome was complete dissatisfaction amongst the people of US, which made them give impetus to the first properly working Cryptocurrency- Bitcoin. Cryptocurrencies are digital currencies. They are not transacted physically but by the medium of internet. They are based on cryptographic principles and hold value hence the nameCryptocurrencies. • Advantage of Cryptocurrency The advantage of Cryptocurrency is that there is no need for a central authority (like RBI in India, Federal Reserve Bank in the US) for the generation or control of transactions. Banks may go bankrupt, the system may be hacked. The common man may have to suffer for no reason. Cryptocurrency allows you to confidently make a transaction without being dependent on any central agency. • Features of Cryptocurrency It is a digital medium used in exchanges. It is cryptographically secured. It is distributed since data does not reside in one place. It does not require any central agency hence it is decentralized. Transactions take place form one person to other- peer to peer. It can also include an extra feature of Anonymity since transactions are anonymous- no one knows how much money do you own. This is in contrast to a central system wherein any government agency can check your account. The factor of mutual distrust is also tackled carefully. • Technology that drives Cryptocurrency The technology on which the foundation of Cryptocurrencies is built is known as- Blockchain Tecnlogy. It involves a distributed ledger. The banking system is, after all, a database, all the data is eventually stored in a big register if this is deleted from the register, a person’s bank account will go null. The prime advantage in the case of cryptocurrencies is that the ledger is distributed amongst all the people participating in the network. Thus if there is some change in one, the other copies will still hold the true values and hence a person can claim his verdict. Eventually, the factor of distrust is also overcomed. Thus we can colcude that investment in cryptocurrency is really worthy.