https://youtube.com/watch?v=ZKXareXDebM
Wondering why I'm shopping so much? hey folks CA Rachana Ranade here and i welcome
you all to another interesting video on cryptocurrencies i'm sure many of you might have
seen this chart on how bitcoin has performed in the past few months just after looking at
this amazing moment there are so many people who believe that a mera bhi 25 din mein paisa
double hoga don't go behind this first learn once you are clear with the concepts then only
decide whether you're going to invest or not a very very very important disclaimer you can
see so many comments which try to impersonate me try to impersonate my channel and they will
ask you to follow them for some advice some numbers will also be given in these comments
and they will ask you to follow them on some telegram channel or Instagram channel or on any
other platform please be 100% sure that I don't give advice on any sort of cryptocurrencies
on any sort of stocks also for that matter i don't have an advisory please ensure that
don't you don't fall for all these fraudsters so let's understand what is the meaning of
cryptocurrency in the most simplified manner so cryptocurrency is divided into two parts one is
cryptography and one is currency first let's try to understand what is cryptography cryptography is
associated with the process of converting ordinary plain text into unintelligible text and vice versa
unintelligible means which can't be understood so it is the process of converting plain text
into text which can't be easily understood okay it is a method of storing and transmitting
data in a particular form so that only those for whom it is intended can read and process it
okay see the moment when you read this that it is it is done in a particular way so that only
that person to whom it is intended can read and understand it remember the movie Razzi in which
Alia Bhatt used to make certain noises like this okay from Pakistan and then in India there
is a person who is listening to this voice and then he understands oh
she's communicating this to me okay now anyone else on earth if he would have
heard that noise he would not have understood that but the sender knows what he means to say and
the receiver also knows what he or she needs to understand from it that is actually cryptography
okay now let's understand the combined term what is cryptocurrency cryptocurrency in simple
words is nothing but digital form of cash okay now let's take this example here we have A
let us say any person A and here we have A is in India and there is one more person B who is from
USA now if A wants to send dollars to B in USA can that person directly send dollars no
he or she will have to first go to a bank okay then bank is a third party who is involved
who will actually convert the rupees into dollars and then verify who is the sender okay who is the
receiver okay we'll match certain things we'll charge some money and then transfer the funds
to B okay so this transaction was possible only with the help of an intermediary which was
the bank here now let's try to understand if there was something like a digital form
of currency which knows no barriers okay something like that a currency it's nothing but
a digital form of cash right so what could have happened that Mr.
A could have directly sent
funds to B without any third party and that is an example of cryptocurrency so what are the
advantages no intermediary required number one number two no geographical barrier number three
because there is no intermediary as such charges are also very less who is going to charge what
that we are going to cover in the subsequent part of the video but charges are going to be very
less and number four it's very fast on an average of course different cryptocurrencies will have
different timings but it ranges as low as four seconds to as as high for popular coins like 10
minutes okay these are the advantages what are the disadvantages then number one disadvantage is
that if if a wrong transfer is made okay then this person A cannot ask for the money back why I'll
tell you because let us say the account to whom the money was to be transferred was account
number 645 and by mistake the person said 654 now he does not know who is 654 that person
does not know who is 654 no one knows who is 654 so once money is gone it can't you can't
get it back if it is a wrong transfer this could have happened if bank was there in between
because bank knows who is 654 right that is a disadvantage number one and number two because the
senders and the receivers identity is not unveiled unfortunately it is used for a lot of illegal
activities through internet which is many times a part of internet which is known as dark web
but if you want to know more about this what technology is used behind all these things we are
going to cover that in the next part of the video. Well now let's understand whether cryptocurrency
is really legal or illegal there are two different things one cryptocurrency being legal and one
cryptocurrency being allowed as a legal tender in India let's tackle both the problems number one
is it legal answer is yes why on 6th April 2018 RBI imposed a banking ban on Indian banks to have
a relationship with crypto companies but the same banking ban was lifted in 2018 by a supreme
court decision and because of which the Indian banks were allowed to have business relationships
and banking services with an exchange so what's the conclusion trading in cryptocurrencies as
on date is absolutely legal then what is the problem problem is that cryptocurrency is still
an illegal tender of money means what tomorrow if I want to go to a shop and buy a refrigerator
I go to the shop I tell the shopkeeper okay give me this refrigerator and I'll say that okay
I'll give you bit some xyz amount of bitcoins in return or xyz or some other cryptocurrency
in return is that allowed no it's not a legal tender I will have to pay in INR I'll have to pay
Indian rupees but then you will say but illegal no wait you can compare it with something
like this even if I go to the same shop I tell that okay pack that fridge for me
and I say I don't have rupees right now do one thing I'll give you 10 reliance industry
stocks in return is that allowed no because even stocks are not a legal tender I hope
you have understood the difference between cryptocurrency being legal and cryptocurrency
not being allowed as a legal tender in India now let's try and understand what is a blockchain
in simple words blockchain is nothing but comprised of two words and one is block and
another one is chain right now what's a block block is nothing but a database which stores a lot
of information what kind of information now let's take the original example that A was sending some
cryptocurrency to B okay now what will that block store block will store information like who is the
sender who is the receiver when was the money sent and so much more information will be stored in
that block right now one more transaction takes place let's say X sends another cryptocurrency
to Y now again that information will be stored in this block that who sent to whom at what player
whatever then M sends to N, A sends to X whatever so much information goes on filling in this block
okay now this block is full another block comes into picture okay but when this block starts it
will point out to the last transaction actually there are concepts like hash rate or hashing
we are not going to go into details of that let's try and understand the essence of what is
a blockchain right so the second block basically will just point out to the last transaction there
that we are carrying forward we are continuing basically from here right again this block will
start filling up with a lot of information correct once this block is filled let's say now the third
block starts but third block will also again point out to the last transaction of the second block
now all these blocks will be linked will be will be uh you know tied together with the help of a
chain and that is why this is called as a block chain now the big question if i were to delete
the data from one of the blocks is that possible no why because a third block was pointing out
to the end of the second block if that second block goes away it will be clearly understood
that something is missing so this cannot happen and that is why it is said
that blockchain is immutable.
Now let's try and understand what is bitcoin well
bitcoin is nothing but a type of cryptocurrency bitcoin was founded in 2008 and it was launched
in 2009 by Mr Satoshi Nakamoto like I am sure no one knows who Binod is similarly no one knows who
Mr Satoshi Nakamoto is well what is the advantage I'll tell you I can just compare it something
like this that we have promoters for a company similarly the promoter of this bitcoin is like
Mr Satoshi Nakamoto now I can imagine that if something happens to the promoter of the company
then what will happen to the share prices of that company they want to go down drastically similarly
if something happens to Mr Satoshi then what but we don't know whether he's alive or not
also so that danger is anyways away right today bitcoin is one of the most popular coins among the
cryptocurrency spaces all over the world wondering how a bitcoin looks like that's how it looks
like okay i'll just show it to you one minute. Oh well it can't be held physically in
your hand why it's a digital currency.
Well I hope you have understood what is bitcoin
very nicely now one or two more fun facts about bitcoin what do you think how is the supply of
Indian rupee is it limited or unlimited correct answer is it's unlimited whenever government
wants it can print more and more Indian rupees what about bitcoins is the supply limited
or unlimited the supply is limited there are exactly 21 million bitcoin all over the world
okay but out of that in circulation there are 18.6 million approximately bitcoins which are in
circulation right now now let us move on with how a bitcoin transaction actually takes place right
so let us say our old example where A transfers bitcoins to B that's where a new transaction
will be entered now what happens this transaction will have to be verified by someone like you
remember the bank example if A sends money to B then there'll be a bank in between that bank will
verify this transaction but in bitcoins in crypto do we have any intermediary no no intermediaries
there then who will verify this transaction now you can imagine there are thousands of people
all over the world who are there who are wanting to verify this transaction these people are called
as miners okay now what happens is that whenever A person sends bitcoin to B no one will say
that in plain English that will be written in some cryptic language okay now you can
imagine this is like some mathematical problem which someone can see something like that okay now
these miners who are all over the world thousands of people who are all over the world they will
try to solve this math problem okay when this now big question how will they solve this using pen
and paper no using a normal laptop no all these are very like very high very powerful computers
that they'll require super computers very high computing power computers will be required
to actually solve these mathematical problems now once they solve this problem what will happen
is they will have to come get something in return as a reward that is where we say that they
are mining the Bitcoin okay so in simple words someone is verifying the transaction or
free of cost okay some reward will have to be given to that person at that reward is in the
nature of giving him more bitcoins but these bitcoins are mined no one will
transfer bitcoin to them as such right.
Now the big question should one invest or not
wait first you have to understand how volatile bitcoin has been in the past and also in
the present just to give you a few stats in December 2017 it had touched the then high
around 19,000 for one Bitcoin then it went down and down and down entered into a bear market
and it touched a low of almost 4000 dollars per bitcoin in March 2020 and since then like stocks
have rallied like anything even bitcoin rallied a long way to believe it or not roughly 42,000
per bitcoin currently as I am shooting the video the bitcoin is trading around 36,000 for one
bitcoin so I hope by now you might have understood that it is a very volatile cryptocurrency now
the big question that are you are you spelling it properly are you saying it properly 36,000 for one
Bitcoin how on earth will I be able to invest even for one Bitcoin it is possible wait you you need
not buy one Bitcoin can you buy it in fractions yes so for example can you buy 0.1 share of
reliance industries no you can't but can you buy 0.1 Bitcoin answer is yes so buying in fractions
is allowed okay wait but then the big question is that whether I should buy uh Bitcoin or Ethereum
or any other cryptocurrency for that matter out of all this which should I choose I think that like
I say in stock market don't go for small caps go for large caps which are comparatively known
which have a proven track record similarly if I'm talking about cryptocurrencies bitcoin is a
cryptocurrency which has the largest market cap and alone bitcoin has more than 65 percent
of the total market capitalization of all cryptocurrencies put together but then if you
ask me my personal opinion i would want to invest a small amount of money which I always call as
a party fund uh that will depend on everyone's risk appetite so for me it can be 5000 rupees
for you it can be 10,000 for someone else it could be 500 rupees also so that depends on how
much risk you are ready to take that can be a small amount with which you may start your
journey in investing in cryptocurrencies I would like to thank Coin dcx for helping
me to make this video about cryptocurrencies if you are in India and if you want to invest
in cryptocurrencies then you can surely check out their app which is coin dcx go by coin
dcx which is India's largest and safest cryptocurrency exchange well if you want to still
learn more about cryptocurrencies they have a free learning platform which is dcx learn if you are
a beginner in cryptocurrencies and if you want to try then you can surely check out their app which
is coin dcx go app which makes investing easy quick and seamless using Indian rupees to download
the coin dcx go app follow the link in the pinned comment and if you're a pro then you can surely
check out coin dcx which is helpful for investing in more complicated products like margin,
trading, futures, contracts, lending staking etc Well few key features of coin dcx
app are instant order settlement, high liquidity, low risk why
because you can start investing with as low as 10 rupees and you can start
depositing with as low as 100 rupees It's KYC is fast and safe because it
is AI enabled it has multiple layers of security to ensure fund safety and
it is also backed by Bitgo custodian now the grand finale question where do you store
these cryptocurrencies possibility number one you can store it with the exchange wherein you
can also earn some interest on that possibility number two you can store them in hardware wallets
they look something like this like a pen drive but this is password protected there's an amazing
fun fact that there is a US programmer who has actually forgotten his password to his hardware
wallet and he has only two attempts left to access his 300 million dollar bitcoin fortune I hope you
have understood and enjoyed this small session on cryptocurrencies if you have liked it don't forget
to share it with your friends if you want to learn more from me do let me know in the comment
section till then take care Jai Hind and bye bye
