Crypto currencies are something that most of us have heard of from time to time through various venues. Such information has filled our social media feeds. Crypto has made a few people wealthy, and it has inspired others to pursue their dreams of establishing a niche. So, what's all the fuss about it, and why has it become so important that it was even featured in our Union Budget for 2022?
This is not a guide to the crypto world, where to invest, or how to invest, rather, it is about how we have begun to react to Virtual Digital Assets as humans. When it comes to investing or trading in the stock market, we are prone to be skeptic and consider points like promoter holding, debt-equity ratio, return on capital employed, EBIDTA margin, the financial position of the company in the past, present, its future prospects and so on. We take due consultation from those having sound knowledge about it. A regulatory body like SEBI is set up by our government to monitor the securities and commodity markets in India to avoid any scams.
Coming to Crypto or rather, saying Virtual Digital Assets as NFTs have also come into the picture, we have come a long way from solely depending on Elon Musk’s tweets to our Union Budget 2022 in deciding to invest in cryptos. Surely, cryptos have lured the human race to such an extent that one starts feeling left out if they do not hold any coins, and everyone wants that dopamine hit. This is because cryptos have changed a few lives in a good way in terms of financial aspects. Those who are already into it must already know how well they wish their portfolio to be at least stable, if not growing.
The Union Budget 2022 not only mentioned that India will have its own digital currency soon using blockchain technology but also pointed to the budding gaming sector. It shows the government’s intention to tap into activities from which people are trying to make money, but at the same time, it is also concerned about safety and security aspects, as we have witnessed scams in the past as well, and our economy is not ready to face another scam in this pandemic.
Now that it is out that RBI is planning to introduce a government-backed digital currency based on blockchain, there will be tax implications on any transfer made in cryptos, but a crystal clear picture is yet to come. The government does not intend to outright ban cryptos and is, in fact, ready to welcome them, albeit in a more formalized manner. Should we be at ease knowing cryptos might be legalized soon and continue with investments, or worry about what regulations we will see in the future and how they will impact our investments? Well, it is a subject matter of discussion.
As of now, cryptos appear to have a long life, but how they will influence our lives remain to be seen. Good luck to those who are already in the venture of exploring and bearing the fruits of it. Since everything seems sort of driven by a certain heuristic, the outcomes of such circumstances are going to be perceived differently as they have an innate purpose to serve depending on person to person. With the entrance of Decentralized Autonomous Organizations (DAOs), it has become necessary to change with the technology change to stay updated, but taking steps without awareness could be risky.
What matters is how we respond to such experiences and make our own conscious decisions as blockchain is not completely secure. It is human psychology that if we find something too good to be true, we believe it will come with some caviar. Having this mindset when investing money seems more logical. It is good to invest, but having the mental discipline to get better at saving is also important. When it comes to cryptos, what is in our control needs to be looked at for utilitarian purposes.
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