Cryptocurrency versus Bitcoin

The effects of Web 3.0 are evident on our society with concepts such as Blockchain, Cryptocurrency, Smart Contracts, Non-Fungible Tokens (NFTs) and Digital Assets in the Metaverse becoming household names. These concepts have permeated every corner of our civilization, and have led to various public and legal discourses, creating further conceptual distinctions around these concepts. One such discourse that has created a rather strange demarcation in our market is that between Cryptocurrency and Bitcoin, which can often be confusing even for readers well-versed in the Crypto paradigm. Acceptance of Bitcoin over other cryptocurrencies as legal tender by the Central African Republic created a ripple effect that attracted more non-conventional investors and strengthened the distinction between Bitcoin and other cryptocurrencies.

Indian government’s stance on cryptocurrency

The Indian government had taken a neutral stand on the matter, which favored the far-sighted investors in the Indian market as they reaped the benefits of this space, especially those who invested in Bitcoin in the initial phase. People considered cryptocurrency to be a medium to make money instead of approaching it like the stock market. Thus, there was never a real debate about the value of Cryptocurrency v. Bitcoin in India.

However, the government of India after observing the volatile trends in this market had several deliberations and decided to impose a 30% tax on any transaction involving cryptocurrency. This initiative by the government created mass awareness about the Crypto domain in the Indian market and triggered several conversations and debates, one of which was the stability of Bitcoin compared to other cryptocurrencies, where a clear opinion in favor of Bitcoin emerged and the other was. the legality of these currencies. As a precursor to a robust regulatory regime, India’s first digital rupee project known as the Central Bank Digital Currency (CBDC) (e₹) has already been launched by the Reserve Bank of India.

The future of cryptocurrency

With the recent crash in Bitcoin, the future seems bleak, as notions of stability surrounding the currency have waned in popularity around the world. This was further compounded by the doubts created due to inflation which severely affected the volume of cryptocurrency trading as a whole, thus leveling the playing field between Bitcoin and the other coins like Ethereum, Solana and the like. On the other hand, Blockchain technologies have already begun to impact businesses outside of finance and have penetrated healthcare, legal, cyber security, insurance and various other sectors where it is used as a ledger to streamline transactions.

However, the focus of Web 3.0 has changed from the currencies mentioned above to NFTs and virtual digital assets sold for consideration on the Metaverse, which promise to be the future and are already drawing the attention of governments around the world, including India, which have decided to put 30% tax on other digital assets as well. This seems like token regulation, and with such rapid development in this area, there is a real need to address the regulatory area regarding Web 3.0 for clarity and investor protection.

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