Cryptocurrency And Blockchain Technology: Legal Challenges And Opportunities In The Digital Asset Era

1.    INTRODUCTION

In India the discussion regarding cryptocurrency is one of the most common, debated and controversial today. However, the idea of virtual mode of transactions, whether it is in business and finance or in the general course of life is not something concealed today. Accordingly, it can be mentioned that Cryptocurrency has got its existence by virtue of the advancement of technology. In addition, the term ‘Virtual Currency’ is too general, and the use of cryptocurrencies is just one facet thereof. Virtual currency itself is a broader concept and a Cryptocurrency can be considered a species of virtual currency. The RBI has defined Virtual Currency in Box 3.4 as follows: 
The report which they have submitted had four, out of which the following information is collected. It defines Virtual Currency as ‘unregulated digital money, created and managed by its promoters for use and acceptance only in a particular online community.’ In the FATF report, Virtual Currency has been described as an ‘electronic money’ that is used in trading electronically and that works as a medium of exchange, unit of account and store of value but it has no legal tender character. At the same time, Virtual Currency has no legal tender similar to Fiat currency. A fiat or a real currency is one which is paper and coin based and hence used by a large number of people and which the government for its people has marked as a legal tender. Cryptocurrency is as yet undefined despite the effort that has been made to give the term a general definition.
The Merriam Webster defines Cryptocurrency as that type of currency which is virtual and has no existence in the physical world and it is not backed by any regulating authority in the digital form. 
According to the Cambridge dictionary Cryptocurrency can be described as any form of currency that is digital and is not made by the government but is, in fact, produced by a public network, which makes use of cryptography to make payments.
Essential definitions offered by the FATF in the report ‘‘Virtual Currencies and Potential AML/CFT Risks” has provided the following definition of Cryptocurrency: “A math-based, decentralised convertible virtual currency that uses cryptography for regulation of creation and transfer of the virtual currency and is protected by means of computer codes through the use of the public and private keys that are used to transfer the value from one person to another and which is cryptographically imposing a signature every time it is transferred.” Chief argument advanced by government of those countries which are against Cryptocurrency is that, they have not given the status of legal tender. The concept of legal tender has been defined under section 26 of RBI Act as ‘Every bank note shall be legal tender at any place in India in payment or on account for the amount expressed therein and shall be guaranteed by central Government. And can be noted here that until the present time no state has agreed to accept Virtual currency as legal money.’
In India, there is no autonomy-specific law regarding the operation of virtual currencies (“VCs”). Nevertheless, it has modernised some statutes such as the Companies Act of 2013 that prescribed the need to account for VDAs to capture the ongoing changes in the financial world. It has also expanded the list of activities and operations to be regulated under PMLA related to VDAs, including several exchanges, transfers, and other administrative measures to and from VDAs, and participation in and provision of financial services in connection with an issuer’s offer and sale of a VDA. In tandem with this, the Indian income tax regime has also been extended to include taxation on VDAs, to acknowledge the revenue impact of the rapidly growing VC industry. 
The legal recognition of VDAs has been splendid in recent years in India, which has added to the legitimisation of the industry. The courts have proceeded to enforce existing tax laws, and the AML laws have been opened up to accommodate the fairly young Web3/VDA space.
The collective endeavour of such global financial and regulatory bodies as outlined herewith reflects the shifting relevance and social acceptance of the VDA industry. 
On the other hand, the government’s stand on VDAs which was to be revealed once the proposed bill titled The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 would be made public, is still awaited. Some government officials’ public utterances suggest that a home-oriented law that governs VDAs will soon be replaced with an internationally contextualized law. Responding to different views from the emerging and the developed economies, India, as the G20 president, has been leading the global crypto regulation discussions with the IMF and the other counterparts. In relation to this, the Presidency Note has been developed by the Indian government as an input for a Roadmap on Establishment of Global Framework for Crypto Assets that is to be submitted for the consideration of the G20 member countries. 
To comprehend the current attitude of the Indian government, we have to consider all of the contemporaneous steps that have been taken by it via its ministries, departments, and officials.

2.    REGULATORY LANDSCAPE

The RBI to date has not acknowledged cryptocurrencies to be monetary forms and no specific laws or law with respect to cryptocurrencies exist in India. In the interim, that law does not offer a clear definition of the cryptocurrencies, these resources are as of now represented by a assortment of the necessities of pertinent law. Cryptocurrencies can moreover be characterized beneath the CCA as a “computer program” beneath Indian Copyright Act of 1957. This is an instruction in a computer dialect other than typical dialect such as composed or conversation dialects; in words, codes or mappings or computers that performs a certain operation or surrender particular results. Other than, there is small question that cryptocurrencies can be considered as ‘intangible goods’ beneath Sale of Goods Act of 1930. Extraordinary assess on send out and purport commerce, charge on administrations given over the border income if the operation of computers for cryptocurrency mining is respected as a benefit) and the deals of cryptocurrencies. But tax collection of the cryptocurrencies is still vague and as for the administrative status of the cryptocurrencies, it is indeed more flawed. From the lawful point of view of the money control law, really buying cryptocurrencies by the Indian inhabitants seem be seen as bringing in program or computer programs into India. Such a handle has to be in compliance with the trade control laws that apply, counting those of the RBI on the bringing in of merchandise and administrations. 
As to the items created in the frame of intangible preparations in India, Installment frameworks and paid ahead of time disobedient are other categories that are beneath the ward of RBI and these categories must experience through the endorsement of the RBI and moreover, compliance with the set directions /enlightening of the RBI. In any case, cryptocurrencies may not be installment frameworks as long as they do not work as a installment strategy which is able to resolve installment exchanges between a payer and a recipient and subsequently have perceivability of the never-ending alter in the esteem of cryptocurrencies. In any case, the utilize and exchanging of cryptocurrencies shield the data / touchy individual information. All of the cryptocurrencies demonstrated call for the utilize of cryptocurrencies in arrange to follow to the standards that are implied to be watched beneath data assurance. It can be seen to raise issues of concern such as; knowing how to go approximately it.
The Controls for Compliance with Indian Law, particularly the IT Act (2000), peruses the Data Innovation (Sensible Security Hones and Methods and Touchy Individual Information and Data) Controls of 2011. Taking after a test overview, it was set up that $ 3.5 billion worth of exchange in 17 months, the IRS given thousands of crypto dealers with assess returns. Thus, sometime recently analyzing the position of the cryptocurrency, one has to consider the taking after rules: 

• The Foreign Exchange Management Act, 1999 ("FEMA")
• The Federal Reserve Bank of India Act, 1934 ("RBI Act")
• The Coinage Act, 1906 ("Coinage Act")
• Indian Contract Act, 1872
• The Payment and Settlement Systems Act, 2007 
• The Securities Contracts (Regulation) Act, 1956 ("SCRA")
• The Sale of Goods Act, 1930.

Cryptocurrencies in India: Future Plausibility 

A later endeavor of the Union Government to forbid private cryptocurrencies is as of now in the prepare as portion of the unused charge to be specific ‘Cryptocurrency and Official Advanced Money Charge Directions, 2021 (Cryptocurrency Charge 2021)’. The proposed law – if passed – will prohibit all shapes of private cryptocurrencies counting bitcoin. Talking of the improvement of cryptocurrencies, the Government of India said the charge. Ought to India design its precise blockchain, it has numerous benefits in India. For occurrence, such activities are more secure. Since India possesses its cryptocurrency, no other alter of the esteem of the cryptocurrency is conceivable. India actualizes its laws on cryptocurrency. This may incorporate outline or clear legitimate rules to the utilize of cryptocurrency components for occurrence when they are manhandled. Cryptocurrencies are joined through the blockchain; in this manner, their confirming strategies are moreover clear. But India moreover has a few issues related with cryptocurrencies – for illustration, the distinguishing proof of unlawful exchanges. 
The over data remains touchy in other cryptocurrencies like BitCoin. At the minute, figures of exchanges made over cryptocurrencies are on the rise. Numerous openings can get to India with the continually expanding ubiquity of cryptocurrencies in the nation with appropriate lawful conditions and rules. Here are a few utilize cases: Cryptocurrencies give an alternative entrepreneurial scene for Indian imaginative trade visionaries. Unused advances that can cause the creation of modern employments by paying clients are allowed to be created by Indian engineers. You will discover strategies. The brokerage taken a toll is moderately moo and consequently the exchange can be made to be cheap.

3.    SECURITIES LAW AND CRYPTOCURRENCY

According to area 2(a)(1) of the Securities Act, 1933, the term “security” implies the taking after: 
“any note, stock, treasury stock, security future, security-based swap, bond, debenture, prove of obligation, certificate of intrigued or cooperation in any profit-sharing assention, collateral-trust certificate, preorganization certificate or membership, transferable share, speculation contract, voting-trust certificate, certificate of store for a security, fragmentary unified intrigued in oil, gas, or other mineral rights, any put, call, straddle, choice, or benefit on any security, certificate of store, or bunch or record of securities (counting any intrigued in that or based on the esteem thereof), or any put, call, straddle, alternative, or benefit entered into on a national securities trade relating to remote cash, or, in common, any intrigued or instrument commonly known as a ‘‘security’’, or any certificate of intrigued or support in, transitory or between times certificate for, receipt for, ensure of, or warrant or right to subscribe to or buy, any of the foregoing.”
Thus, when individuals talk of security, they do not essentially think of it in terms of the statute book and Securities and Trade Commission v. W. J Howey has given an extended meaning to that word. Agreeing to this case, in the event that: It would be regarded as “investment contract” (and naturally a security) if there is: 
(a) the expenditure of money 
(b) for a business venture 
(c) the expectant of profits 
(d) and such profits are derived from the efforts of others. 
When there is a sale of digital assets in a general transaction on a crypto-exchange, it is easy to satisfy the first condition of the Howey Test (investment of money) since there is an exchange of the digital asset and either fiat money, or another digital asset. This is the case because not any investment that is held to give rise to the creation of an investment contract would be in the form of cash. Furthermore, it was also seen an investment contract in SEC v. Shavers. This was because the respondents therein were involved in running a “Bitcoin Savings and Trust” which was in the nature of an online investment pyramid scheme where all the transactions were to be carried out in Bitcoin. Essentially, it was argued that Bitcoin was used to buy “goods and services”, and therefore would be deemed “money” to meet the first prong of the Howey Test. 
The criterion of ‘common enterprise’ is, therefore, determined by the doctrines of either vertical or horizontal commonality. The former gives to the notion of “common enterprise” a meaning that requires the overall dependency of the investor’s profit on the person who is soliciting the investment or on a third party. The latter identify common enterprise as pooling of a common interest in which this is often accompanied by equitable sharing of profits.
Hence, digital assets will satisfy this part of the test so long there is an investor-investee connection, or if a set of persons have a pooling of a common interest, as seen in SEC v. Shavers. 
The intellectual concept of the third and fourth prongs of the Howey Test would have been matters of fact that must have been established in a given case. 
Worldwide, VDA market platforms and ecosystems for retail investors, creators and lovers most of the time proceeds through exchange platforms. They are crucial on-ramps and off-ramps that create relationships with multiple bodies, regulators and corporates. Below are some important legal and enforcement developments which have a bearing on how exchanges conduct their businesses:

As per a circular released by the Central Board of Direct Taxes (“CBDT”), an exchange is now defined as “…any person that operates an application or platform for transferring of VDAs, which matches buy and sell trades and executes the same on its application or platform”;
Tax obligations under the new VDA tax regime were placed on Exchanges, which must now comply with various tax provisions provided in the IT Act, government notifications and CBDT circulars. A detailed discussion of taxation issues related to Exchanges can be found in the chapter “Taxation”;
Lastly, in recent times some exchanges have been charged for allegedly helping foreign companies launder money using previous private cryptocurrencies. The Enforcement Directorate (ED) is closely examining any cross-border transactions through exchanges.

A Case for ‘Re-interpretation’ of the Term ‘Securities’ under the Indian Securities Laws 
Under section 2 (h) of the Securities Contract Regulation Act, 1956 securities include units or any other instrument of any collective investment scheme, shares, scrips, stocks, bonds, debentures, debenture stock, any other marketable securities of any incorporated company or other bodies corporate, any derivatives, any Government securities and any instruments declared by the Central Government to be securities and any rights or interests in securities. 
This provision however limits the application of this provision to incorporated companies or bodies corporate. Digital assets would not fall into any of the two due to the definition. On the other hand, in the United States of America, there is no such restriction and by virtue of the Howey Test, ‘common enterprises’ are accorded importance over and above body corporates. Besides, the biggest strength of the Howey Test is the fact that it is very rational and is not rigid; it pays more attention to the content of the transaction than its legal form. Due to the nature of the test by virtue of which jurisdiction is sought, courts have been able to consider various schemes and to exercise jurisdiction in that respect. This approach can be potentially inclusive of ‘digital effects,’ depending on the circumstances as presented by the facts.

4.    ANTI-MONEY LAUNDERING (AML) AND KNOW YOUR CUSTOMER (KYC)

At present, the governance of Virtual Digital Assets (VDAs) in India is predominantly derived from circulars issued by the Reserve Bank of India (RBI), which impose requirements for scrutiny by the entities it regulates. These regulated entities, notwithstanding the pseudonymous characteristics inherent to VDA transactions, were initially insulated from providing services to cryptocurrency enterprises due to the RBI's concerted efforts to effectively prohibit engagement with VDAs.
Nevertheless, this prohibition was subsequently overturned by a ruling from the Supreme Court of India. The judgment was supplanted by a circular that allows regulated entities to engage with VDAs, provided that they adhere to the established Know Your Customer (KYC), Anti-Money Laundering (AML), and Countering the Financing of Terrorism (CFT) protocols. At present, the Enforcement Directorate (ED) is vigorously pursuing alleged instances of money laundering related to VDAs.
Furthermore, specific legislative amendments (previously addressed) have expanded the jurisdiction of the PMLA to encompass a diverse array of elements pertinent to VDAs. These elements comprise the exchange between VDAs and fiat currencies, the inter-exchange among various types of VDAs, the transfer of VDAs, the custodianship or management of VDAs, and participation in financial services associated with an issuer's offering and sale of a VDA. This extension not only incorporates transactional facets but also underscores the imperative for regulatory supervision concerning involvement in and the delivery of financial services related to VDAs.
Additionally, guidance issued by CERT-In mandates that “virtual asset service providers,” “virtual asset exchange providers,” and “custodian wallet providers” are required to uphold Know Your Customer (KYC) protocols and retain records of financial transactions for a duration of five years.

Reporting under the PMLA
The PMLA Notification brings (among others) crypto businesses and exchanges about it are under the purview of the PMLA and the rules. This has expanded the meaning of Reporting Entities under the PMLA henceforth. In accordance with section 2(1)(wa) of the Act, a “Reporting Entity” is defined as “banking company, financial institution, intermediary or a person engaged in designated business or profession”. Every Reporting Entity must comply with directions given by PMLA and Rules which include: (a) verifying client identification; (b) investigating customer’s background; (c) documenting and tracking all transactions; (d) timely submission of any report on such transactions; (e) keep records for a period stipulated by law and (f) keeping information secret.
It is obligatory for every Reporting Entity under section 12 of PMLA to keep record of transactions made, records documenting identities of customers and these documents have to be sent to central government. These also include furnishing information as well as reporting suspicious transactions to Financial Intelligence Unit (FIU), Government of India. Besides this, each Reporting Entity is supposed to have an internal system for storing such details as per the Rule 5(2) of the Rules.
Additionally, The FIU has gone ahead to publish the AML and CFT Guidelines for Reporting Entities providing services concerning Virtual Digital Assets (hereinafter referred as “Guidelines”) which apply exclusively on service providers in cryptoasset (VDA) industry. Although these Guidelines do not possess any legal binding effect they have been set out as merely general reference materials aimed at ensuring compliance with legal requirements under PMLA and its associated regulations; however, they highlight some best practices that should be adopted by those offering services around crypto assets/VDAs.

5.    TAXATION OF CRYPTOCURRENCY

The VDAs have been brought within the ambit of taxation through the Finance Act, 2022 and subsequent government notifications and CBDT guidelines. These changes can be summarised as follows: 

Definition of VDAs: 
The term ‘VDAs’ has been defined quite loosely and the government has retained the discretion to specify new types of digital assets. Further, the government has excluded the following from the definition of VDAs: Some of them include; (a) gift cards or vouchers; (b) mileage points, reward points or loyalty cards; and (c) subscription to websites, platforms or applications. [xvi] It is also clear that the definition seems to capture definitions of digital assets as a “currency” in references to ‘inherent value’ and as ‘unit of account’ as well as definitions of the digital assets as an ‘asset’. They have also been incorporated in the list of VDAs. According to another government notification, “NFT”, for the purpose of income tax, has been explained as “a token which qualifies to be a virtual digital asset as non-fungible token within the meaning of sub-clause (a) of clause (47A) of section 2 of the Act but shall not include a non-fungible token whose transfer results in transfer of ownership of underlying tangible asset and the transfer of ownership.

Tax on income from VDAs: 
New with this transfer, there is a tax of thirty percent on income derived from the transfer of a VDA which tax is in addition to other income tax that is payable on all the other incomes of the assessee. As for deduction, other than the cost of acquisition of the VDA, there is none that is allowed. Not even losses made in such trade are allowed to be offset against taxable income.

Payment on transfer of VDAs: 
VDA buyer is held to withhold and pay a withholding tax of 1% of the consideration amount under this section. Where the consideration is in kind, wholly or partly, and where the cash consideration is not enough to amount to the statutory threshold, the consideration cannot be released without having paid tax on the whole consideration. The exemptions and thresholds have been set for the convenience of some categories and among them is people. 

Gift of VDAs: 
Any amount so received by an individual without any consideration or for a consideration which is at least 50,000 of Indian rupee or its equivalent in the foreign currency lower than the fair market value, will be governed as income from other sources in the hands of the recipient. 
Guidelines for Exchanges:
A brief of the guidelines that EA Covers to the Exchanges are as follows: 
The responsibility for withholding tax has been clarified via two scenarios:The responsibility for withholding tax has been clarified via two scenarios: 
Where the Exchange does not hold the VDA to be transferred it shall reduce it by withholding tax. Where the Exchange is supposed to credit the broker (who does not own the VDA), both the Exchange and broker need to deduct withholding tax, unless there is an agreement in the alternative between the parties. This will mean that the Exchange will need to provide Statements of such transactions to the authorities on a quarterly basis. 
If the Exchange owns the VDA being transferred the buyer shall make the withholding tax less unless there is an agreement on whether it shall be in the alternative between the Parties. 
This tax may be deducted by the Exchange itself bearing in mind that, when the consideration is in kind or in exchange of another VDA, there are practical difficulties that faced the Exchanges. One of them can be addressed by an alternative mechanism that is anchored in written contracts with buyers and sellers.
Where the tax amount deducted is also in kind and subject to conversion to cash, then the exchange will have to undertaking other arrangements as set in the circular. 
The tax to be withheld shall be on ‘net’ consideration that is after netting of the GST/ charges which may be levied by the Exchange for its services. 
If there are payment gateways involved, then such a gateway will not be able to remit tax where the tax has been prepaid by the buyer. 

Guidelines for P2P transactions:
These apply to all transactions outside of those carried out through Exchanges: 
The aforementioned situation when consideration is other than in kind includes several obligations and risks for the buyer – to deduct and deposit withholding tax, to provide several other forms of compliance, including quarterly statements and others. 
When the consideration is in ‘kind or in exchange of VDA, the buyer shall deliver the consideration ‘in kind after the seller has produced a tax receipt of such tax. 

On mining: 
Thus, the infrastructure costs that will have been expensed in the mining of VDAs will also not be recognized as cost of acquisition as these are in the nature of capital costs which cannot be deducted from taxable income. 

GST:
The goods sold in India are charged with GST at rates that are provided for depending on the type of goods sold. In the event that VDAs are to be categorised as “goods”, then every transaction would attract GST. A seller is most often mandated to pass on the prescribed GST cost to the buyer /service recipient and remit the same to the authorities. Currently the service fee by Exchanges is being charged an amount for GST assessment. 
Something that we still detect here, of course, is cross-border VDA transactions, and issues concerning withholding tax, as well as Double Taxation Avoidance Agreements. The conversion of VDAs from one country to another, from wallets and exchanges remains an unsolved legal question of how to correctly tax the sale of VDAs across jurisdictions.

6.    EFFORTS BY THE GOVERNMENT

Indian government's actions:
From time to time, Indian Government had voiced their disagreement towards cryptocurrency usage in India. A speech was made by India's Finance Minister in the year 2018 expressing his opinion that the Indian Government will take all possible measures to prevent its citizens from using Virtual Currency. It has identified risks associated with them hence now the government is mitigating those risks. In 2018, The Crypto Token and Crypto Asset (Banning, Control and Regulation) Bill: 

The First Step:
According to this bill, cryptocurrency is prohibited in India for these following activities:
i. It cannot be utilized as a means of exchange
ii. This shall not be employed as a store of value
iii. It will never serve as a unit of account
Subsequently came another law in 2019,” The Cryptocurrency (Banning & Regulation of Official Digital Currency) Act”, introduced to ban completely Crypto currencies.” This act also encompasses holding them, selling them or issuing transactions even though they are cryptographically secure," says one expert which considers these actions illegitimate.

Efforts made by the Government of India:
From time to time the authorities in India had said that cryptocurrency usage is worth devoiding Indians government’s opinion. A speech was delivered within a March of 2018 made by Finance Minister of India, beside against virtual money usage he declared that Indian Government will use its utmost effort to discourage any citizen of theirs from adapting it. Actually, such kinds of transactions pose several hazards and that’s why they have been recognized by the administration; accordingly, currently they are working on minimizing them. The Crypto Token and Crypto Asset (Banning Control and Regulation) Bill 2018: The first step:
This bill mentions some things where crypto currency is said cannot be used:

i) As money
ii) As an asset store
iii) As accounting unit
Thereafter another act “Banning Cryptocurrencies and Regulation of Official Digital Currency Act, 2019” was brought into force which specifically aimed at completely prohibiting cryptos. Moreover, it will also regulate holding, buying or selling cryptocurrencies as well.”
The intention behind the idea of prohibiting Cryptocurrency, as well as introducing this Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is to ban cryptocurrency. IMC was formed by different ministries to especially investigate the cryptocurrency situation that exists within Indian borders. The committee’s report also suggested that it be banned altogether.
Apart from this recommendation, it was suggested by the panel that India must have its own virtual money. If enacted upon, the provisions under this act would greatly influence and define India’s economy today. This would definitely affect all present investors–mostly negatively because they would incur several losses afterwards.
The intention behind banning cryptocurrency or bringing such a bill like ‘Cryptocurrency & Regulation of Official Digital Currency Bill 2021’ is nothing short of stupidity IMC (Inter-Ministerial Committee) being one essential body put in place to investigate how cryptocurrencies are doing in India Owing to that we have seen various suggestions including banning them made by this committee.
There was another suggestion for India developing her digital currency after; If enacted upon these laws will ‘crash down’ almost everything There could be no other alternative than losing money by those who invested their money into bitcoins during those periods now around 2022 2023 periods and so forth;
The ongoing discussion regarding classifying Cryptocurrencies as commodities further points to lack of a thorough understanding of economics among our policy makers who seem to think that regulation can make anything safe and sound.

7.    CONCLUSION

Of the numerous challenges before us, one that stands out is how to regulate cryptocurrencies. Without an adequate law coming into effect in the next few months, Indian courts will be inundated with suits dealing with cryptocurrencies. There are no legislative instruments in place to regulate cryptocurrencies, which is the main issue. A well-structured framework should be developed in consideration of the fluctuations and absence of a central authority. It is a fact that digital currency does not satisfy the basic role of currency. Even when some individuals are championing for technological progress, these things cannot qualify as money. As opposed to using Private Currencies that act as tax avoidance tools, public crypto ought to be promoted by India. It will then become simpler since it would have a government backing it based on public confidence and ultimately perform all monetary tasks without undermining national growth objectives. The only way we can succeed in fighting crime related to cryptocurrencies is through public cryptocurrencies.
At first glance, everything appears appealing in this age if it spares our time, strength. Cryptocurrency has positioned itself to be part of that scenario. More people are trusting Cryptocurrency as a better mode of payment than any other. However, the only problem that has emerged is that there are no regulations governing Cryptocurrency yet. Hence, it is critical to understand that we need a suitable legal framework to control any activities relating to Cryptocurrency transactions. The article seeks to provide an exhaustive account concerning the functioning of Cryptocurrency in India today and what changes must occur for its future improvement. It is therefore suggested that the Supreme Court should intervene in this matter with appropriate regulations also.

8.    FREQUENTLY ASKED QUESTIONS

Why are there so many cryptocurrencies?
At present, there are thousands of cryptocurrencies in existence. Some of these have only a very small following, while others such as bitcoin and ether have a large number of users and investors.

Additionally, who came up with the idea for Bitcoin? And when did it hit the market?
The Bitcoin concept was first introduced in 2008 in a white paper released under the name “Satoshi Nakamoto.” In 2009, an open-source software2 containing protocols behind this currency was published. The Bitcoin network consists of computers running its software all over the world.
What’s bitcoin mining all about?
It is a system of achieving agreement among members of Bitcoin network regarding what the next transaction block to be added to the Bitcoin blockchain will be. To find solutions to cryptographic puzzles, certain people called “miners” compete. The first miner to achieve this is allowed to submit his/her new block of transactions over the whole network. In return for doing this, he/she receives some newly generated bitcoins as a reward for his/her services. Therefore, mining can also be seen as a way of introducing new bitcoins into the system.
What distinguishes bitcoins from NFTs?
Non-fungible tokens (NFTs) are blockchain tokens that cannot usually be exchanged for any other tokens on that chain. On the other hand, bitcoin is a fungible token, signifying that it may easily be obtained in exchange for another without any loss at all like how for example, one Canadian dollar can be given up in favour of another Canadian dollar anywhere within Canada.