The term cryptocurrency is derived from the two words ‘crypto’ (data encryption) and ‘currency’ (medium of exchange). Cryptocurrency is a type of digital or virtual money. It exists only in electronic form. Cryptocurrencies are stored in cryptographic wallets through a publicly accessible address. And it will be secured with a very strong password called private key.
No one can ever take the cryptocurrency in your wallet without your private key. A cryptocurrency is a medium of exchange (like regular money) that exists in the digital world and uses encryption that ensures the security of transactions. Unlike the Reserve Bank (India) and the Federal Reserve (US), these have no regulatory mechanisms. These digital currencies are virtually as unregulated as the Internet.
Thus, in India, cryptocurrencies including Bitcoin are digital currencies created using special encryption technology independent of the Reserve Bank. The leading cryptocurrencies are expected to play an important role in future payments. The use of cryptocurrencies has been increasing exponentially over the past several years. Bitcoin is currently used in 96 countries, and estimates suggest that 12,000 transactions take place every hour.