- Definition: Cryptocurrencies are assets like gold, not controlled by government.
- They are not issued by government or RBI.
- Encryption techniques create and control units and verify exchange.
- Value is derived from limited supply and willingness to hold.
- They are neither legal tenders nor fiat currency.
- Advantages:
- Can be mined/generated only in limited numbers.
- People may accept them for transactions.
- Challenges:
- Government has no control over them.
- Not generally accepted in daily transactions (not legal tender).
- Income from transfer is taxed at 30%.