Similar to the gold rush where fortune seekers scoured to mine gold, the frenzy is back with the rise of digital coins, which has fired up users in mining and buying cryptocurrencies.
Essentially, cryptocurrency is a form of digitized and unregulated money that is created and maintained by developers in cyber space. These currencies are accepted and transacted amongst a network of users in the virtual world. As per their nature, cryptocurrencies do not have any intrinsic value and do not exist in physical form.
This industry kicked in with the introduction of the revolutionary Bitcoin, which was developed by Satoshi Nakamato in 2008. It showcased how money can be managed in a self-regulated market, without a central bank to govern supply; this led to the birth of even more digital currencies over time. By May 2017, the price of the Bitcoin surpassed $2,900, becoming twice its value in a month and registering a 500-fold increase over a 5-year period. While initially this Bitcoin boom was triggered by the US, much of the recent currency growth is now driven by the sky-rocketing appeal in Asia.
In India this trend is known as the “bitcoin fever” that has engulfed many people locally. India was ranked 4th in the Bitcoin trading market, with trades of 16,754.76 coins, constituting around 10% of the global volume. The exponentially rising local demand, coupled with a shortage in suppliers, have made Bitcoin prices run at a premium many times. With even more digital options available in the cyber market, this inclination is to intensify ahead.