Ban or no-ban, few things to know about crypto currency – Times of India

Everyone is talking about cryptocurrencies. The Prime Minister has been talking up cryptocurrencies and about the need to regulate these digital assets. Meanwhile, the Reserve Bank of India has been consistently cautious about the way in which people have been rushing to trade in cryptocurrencies. Even as the country waited for news about some degree of regulation, the government announced that it would introduce a bill soon that would ban “private cryptocurrencies” and promote an RBI-backed digital rupee. Predictably, there was panic in the crypto market, despite experts trying to explain that the bill would probably regulate cryptocurrencies and not entirely ban them. As the country waits for clarity on this bill, here are some basics about cryptocurrencies and what you can expect going forward.

A little history

On May 22, 2010, Laszlo Hanyecz, a programmer and Bitcoin developer, bought two pizzas for 10,000 bitcoin. That was the first time bitcoin was used as a currency in the real world. A few months before this, in October 2009, bitcoin had been exchanged for fiat currency for the first time; 1000 bitcoin fetched the princely sum of $1. By that calculation, Hanyecz’s pizzas cost $10, which is nothing extraordinary. At today’s rate, though, Hanyecz paid $567 million.
Imagine if you had been one of the early adopters of bitcoin and had bought (or mined or otherwise acquired) even a couple of bitcoins a decade ago.

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