INTRODUCTION TO CRYPTOCURRENCY AS A DIGITAL ASSET CLASS

INTRODUCTION TO CRYPTOCURRENCY AS A DIGITAL ASSET CLASS.

INTRODUCTION. Digital Assets are the digital equivalents of financial assets such as shares, real estates, or commodities or currencies which have emerged as a growing asset class with a newly rise of investor interest. A Digital asset is created or minted when new information is added to a particular blockchain. Through blockchain entries users can exchange existing digital assets and/ or it can create a new one. Blockchain are the technology solutions that enable digital assets. It is a method of securely recording information on a peer-to- peer network.

INTRODUCTION. A cryptocurrency, crypto-currency, or crypto is a digital currency under digital asset class designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it . Bitcoin first released as open-source software in 2009, is the first decentralized cryptocurrency. It was invented by a Japanese person Santoshi Nakamoto. Nowadays cryptocurrency has been banned by many countries, but in India it is not yet banned, Union Government has imposed 30% flat tax on all income from cryptocurrency investment..

HISTORICAL PERFORMANCE AND ANALYSIS. 4. DATE RELIANCE TCS HDFC BANK INFOSYS HUL BITCOINS ETHEREUM BINANCE TETHER SOLANA Dec-21 -1.55% 5.80% -0.95% 10.22% 1.84% -14.29% -17.37% -14.51% -0.01% -24.27% Nov-21 -5.16% 3.92% -5.64% 2.69% -3.16% -7.22% 7.96% 18.83% 0.04% 2.89% Oct-21 0.67% -9.95% -0.76% -0.44% -11.42% 39.90% 42.89% 35.31% 0.04% 43.30% Sep-21 11.56% -0.32% 0.86% -1.83% -0.82% -7.02% -12.54% -16.52% -0.02% 30.50% Aug-21 10.95% 19.54% 10.86% 5.96% 16.75% 13.42% 35.49% 39.67% 0.02% 195.08% Jul-21 -3.57% -5.31% -4.77% 1.88% -5.58% 18.63% 11.36% 9.62% -0.01% 3.30% Jun-21 -2.30% 5.90% -1.18% 13.42% 5.61% -6.09% -16.05% -14.27% 0.01% 8.59% May-21 8.31% 3.97% 7.33% 2.91% -0.58% -35.38% -2.32% -43.25% 0.00% -23.16% Apr-21 -0.43% -4.38% -5.45% -1.00% -3.20% -1.78% 44.57% 106.27% -0.01% 119.09% Mar-21 -3.96% 9.72% -2.66% 9.16% 14.05% 30.11% 35.19% 43.87% -0.22% 48.80% Feb-21 13.24% -6.97% 10.35% 1.15% -5.82% 36.41% 8.08% 374.42% 0.15% 206.05% Jan-21 -7.22% 8.46% -3.19% -1.33% -5.49% 14.37% 78.37% 18.58% 0.04% 181.90% Dec-20 2.88% 7.13% -0.32% 14.16% 12.03% 46.97% 19.49% 18.56% 0.02% -23.01% Nov-20 -6.07% 0.54% 21.74% 3.71% 3.23% 42.77% 59.39% 10.46% 0.02% 27.28% Oct-20 -8.05% 6.96% 9.73% 5.19% 0.15% 28.04% 7.52% -2.77% -0.08% -46.51% Sep-20 7.38% 10.42% -3.34% 8.58% -2.32% -7.46% -17.17% 26.74% 0.00% -39.29% Aug-20 0.66% -1.14% 8.04% -3.87% -4.19% 2.74% 25.22% 11.94% -0.04% 205.94% Jul-20 21.30% 9.62% -3.10% 31.26% 1.81% 24.06% 53.58% 34.18% 0.10% Jun-20 16.37% 5.61% 12.00% 6.51% 5.96% -3.38% -2.67% -9.97% 0.10% May-20 0.84% -2.15% -5.01% -3.42% -6.27% 9.57% 12.41% 0.63% -0.14% Apr-20 31.63% 10.52% 16.23% 11.54% -4.50% 34.56% 55.22% 35.48% -0.28% Mar-20 -16.17% -8.89% -26.81% -12.33% 5.69% -24.94% -38.92% -34.90% -0.10% Feb-20 -5.88% -3.77% -3.97% -5.70% 6.91% -8.62% 20.91% 5.90% 0.47%.

TABLE. Jan-20 -6.76% -3.79% -3.60% 6.13% 5.79% 29.91% 39.24% 32.57% -0.49% Dec-19 -2.39% 5.29% -0.22% 5.00% -5.52% -4.64% -14.97% -12.42% -0.40% Nov-19 5.93% -9.58% 3.62% 1.57% -6.44% -17.55% -16.68% -21.01% 0.54% Oct-19 9.92% 10.30% 0.24% -14.90% 9.76% 10.48% 1.12% 25.30% -0.23% Sep-19 6.70% -7.03% 10.19% -1.14% 5.32% -13.65% 5.09% -25.37% 0.23% Aug-19 7.06% 2.39% -0.83% 2.68% 8.99% -4.84% -20.99% -23.46% 0.20% Jul-19 -6.93% -0.98% -7.86% 8.42% -3.41% -6.81% -25.66% -13.65% 0.78% Jun-19 -5.79% 1.38% 0.76% -0.78% -0.05% 26.41% 9.04% -2.48% -0.51% May-19 -4.50% -2.58% 4.66% -1.81% 1.75% 60.85% 65.63% 49.39% -2.15% Apr-19 2.17% 12.72% -0.06% 1.01% 2.98% 29.70% 14.11% 25.74% 2.01% Mar-19 10.74% 0.81% 11.62% 1.30% -1.49% 7.49% 4.67% 70.65% 0.53% Feb-19 0.32% -1.51% -0.12% -2.03% -1.74% 11.04% 26.95% 65.16% 0.05% Jan-19 9.45% 6.39% -1.97% 14.37% -3.10% -7.34% -19.10% 1.88% -0.46% Dec-18 -3.97% -3.91% -0.32% -1.27% 3.74% -8.18% 15.93% 19.22% 1.40% Nov-18 10.02% 1.70% 11.34% -2.76% 8.16% -36.54% -42.71% -46.05% -0.63% Oct-18 -15.64% -11.30% -4.70% -5.98% 0.83% -4.06% -14.70% -5.30% -0.49% Sep-18 1.31% 5.12% -2.68% 1.32% -9.65% -5.67% -17.43% -8.72% -0.30% Aug-18 4.69% 7.05% -5.43% 5.57% 2.80% -9.00% -34.66% -20.44% 0.18% Jul-18 21.96% 5.09% 3.37% 4.43% 5.51% 20.79% -4.68% -6.35% -0.07% Jun-18 5.55% 5.87% -1.45% 6.96% 1.84% -14.71% -21.67% 3.67% 0.07% May-18 -4.35% -1.18% 10.04% 2.69% 6.80% -18.85% -13.76% -0.72% -0.20% Apr-18 9.13% 23.94% 3.09% 5.98% 13.17% 33.25% 70.09% 29.64% -0.01% Mar-18 -7.53% -6.22% 0.10% -3.48% 1.18% -32.86% -53.79% 5.62% -0.08% Feb-18 -0.70% -2.36% -6.06% 1.94% -3.77% 0.67% -23.75% -7.57% 1.47% Jan-18 4.37% 15.23% 7.12% 10.38% 0.11% -25.88% 51.75% 32.63% -3.27% Dec-17 -0.05% 2.51% 1.01% 6.76% 7.50% 39.25% 70.47% 337.44% 0.99% Nov-17 -2.05% 0.69% 2.50% 5.88% 2.83% 54.18% 42.32% 1.01% Oct-17 20.48% 7.36% 0.16% 2.44% 5.41% 47.94% 0.08% 0.01% Sep-17 -2.05% -2.39% 1.65% -1.64% -3.76% -7.91% -21.65% -0.02% Aug-17 -1.28% 0.11% -0.45% -9.52% 5.54% 64.23% 92.87% 0.00% Jul-17 17.04% 5.49% 8.01% 8.09% 7.05% 16.23% -27.14% -0.99% Jun-17 2.93% -7.07% 0.97% -4.25% 1.18% 7.70% 26.23% -4.72% May-17 -3.91% 11.98% 5.80% 6.32% 14.12% 70.38% 161.45% 13.37% Apr-17 5.62% -6.54% 7.21% -10.11% 2.54% 25.28% 67.96% Mar-17 6.69% -1.44% 3.77% 0.97% 5.30% -9.26% 213.49% Feb-17 18.45% 10.61% 8.04% 9.02% 1.23% 23.18% 48.09%.

TABLE. Jan-17 -3.44% -5.59% 6.67% -8.11% 3.52% 0.22% Dec-16 9.33% 3.74% 0.55% 3.59% -2.09% 29.75% Nov-16 -5.82% -4.92% -4.28% -2.65% 0.58% 6.27% Oct-16 -3.00% -1.34% -1.54% -3.28% -3.31% 14.89% Sep-16 2.24% -3.40% -1.42% 0.02% -5.36% 5.97% Aug-16 4.44% -4.05% 3.61% -3.54% -0.60% -7.72% Jul-16 4.72% 2.66% 5.93% -8.28% 2.67% -7.19% Jun-16 1.18% -0.94% -0.46% -6.23% 5.94% 26.68% May-16 -2.53% 1.78% 4.38% 3.36% -2.27% 17.92% Apr-16 -5.98% 0.56% 5.71% -0.84% -0.18% 7.91% Mar-16 8.12% 15.31% 10.22% 12.38% 4.71% -4.71% Feb-16 -6.64% -8.75% -7.43% -6.94% 1.65% 17.95% Jan-16 2.05% -1.97% -2.98% 5.38% -5.31% -13.98% Dec-15 5.05% 3.13% 0.41% 1.61% 6.72% 13.75% Nov-15 1.92% -5.29% -1.99% -4.19% 0.97% 21.44% Oct-15 9.90% -3.49% 2.88% -2.28% -1.73% 31.92% Sep-15 0.75% 0.88% 4.02% 6.17% -5.36% 2.82% Aug-15 -14.57% 2.20% -7.57% 1.61% -6.59% -19.12% Jul-15 0.18% -1.65% 4.17% 9.42% 0.54% 7.42% Jun-15 14.04% -2.24% 1.58% -2.69% 6.65% 14.91% May-15 1.70% 5.84% 6.24% 4.17% 1.08% -2.52% Apr-15 4.40% -3.16% -3.31% -12.45% -2.66% -3.43% Mar-15 -4.52% -4.79% -4.53% -3.40% -4.02% -3.90% Feb-15 -5.48% 7.83% -0.57% 7.22% -2.41% 16.27% Jan-15 2.71% -2.88% 13.21% 8.59% 22.69% -31.34% Dec-14 -10.13% -3.34% -0.58% -9.51% -3.31% -15.12% Nov-14 -0.90% 1.48% 4.97% 7.62% 6.47% 10.97% Oct-14 5.80% -4.88% 4.49% 8.10% -1.03% -12.96% Sep-14 -5.31% 8.46% 3.45% 4.14% 0.48% -19.43% Aug-14 -0.77% -2.04% 1.14% 6.86% 8.13% -18.28% Jul-14 -0.88% 8.19% 1.52% 3.44% 10.68% -7.18% Jun-14 -4.63% 12.84% 3.63% 10.76% 2.82% 1.15% May-14 13.77% -2.06% 9.91% -7.59% 6.32% 40.90% Apr-14 0.54% 2.87% -3.67% -3.11% -6.28% 0.22% Mar-14 16.35% -6.36% 11.83% -14.17% 10.25% -22.53% Feb-14 -3.75% 1.64% 6.54% 3.34% -3.66% -38.87%.

CONTINUE……... Jan-14 -7.16% 3.01% -5.61% 6.18% -0.10% 16.49% Dec-13 4.92% 8.30% 0.69% 3.91% -4.05% -33.15% Nov-13 -6.73% -4.92% -2.86% 1.35% -2.48% 470.94% Oct-13 11.22% 9.42% 14.80% 9.85% -2.81% 48.82% Sep-13 -3.68% -4.77% -0.16% -2.99% -0.63% 0.64% Aug-13 -2.09% 11.46% -2.58% 4.59% 3.09% 32.76% Jul-13 1.10% 19.54% -8.92% 18.84% 4.68% 8.92% Jun-13 6.98% 1.25% -4.43% 3.61% -1.24% -24.31% May-13 2.30% 8.96% 2.67% 7.88% 1.49% -7.48% Apr-13 1.98% -12.44% 9.11% -22.63% 25.02% 49.66% Mar-13 -5.03% 3.77% 0.00% -0.61% 5.39% 178.70% Feb-13 -8.21% 12.81% -2.75% 4.21% -6.52% 63.55% Jan-13 5.61% 6.69% -5.24% 20.30% -9.70% 51.07% Dec-12 5.78% -4.14% -3.60% -4.85% -2.46% 7.48% Nov-12 -1.47% -0.04% 11.00% 3.13% -1.56% 12.23% Oct-12 -3.79% 1.50% 0.80% -6.78% 0.14% -9.68% Sep-12 9.24% -3.96% 5.68% 7.34% 5.97% 22.05% Aug-12 3.07% 8.60% 1.29% 6.05% 10.22% 8.66% Jul-12 0.78% -2.89% 4.29% -11.25% 2.83% 39.76% Jun-12 4.57% 2.55% 11.33% 3.29% 6.19% 29.15% May-12 -5.30% 0.07% -6.69% -1.33% 2.49% 4.65% Apr-12 -0.73% 6.60% 4.36% -14.10% 1.84% 0.00% Mar-12 -8.55% -4.36% 0.53% -0.59% 7.85% 0.00% Feb-12 0.45% 8.01% 5.08% 5.01% 0.33% -11.31% Jan-12 17.92% -2.65% 15.29% -0.78% -6.98% 16.10% Dec-11 -10.96% 4.33% -3.54% 6.17% 2.58% 58.92% Nov-11 -11.31% -0.10% -9.69% -9.41% 5.68% -8.62% Oct-11 8.56% 7.39% 4.78% 13.60% 10.33% -36.77% Sep-11 3.29% -0.30% -0.91% 8.11% 6.30% -37.32% Aug-11 -5.48% -8.27% -3.05% -15.60% -1.11% -38.58% Jul-11 -7.85% -3.89% -3.24% -4.62% -5.72% -17.08% Jun-11 -5.61% 1.86% 4.83% 4.48% 12.84% 84.21% May-11 -3.24% -0.41% 4.53% -4.15% 6.78% 149.71% Apr-11 -6.23% -3.52% -2.14% -10.34% -0.66% 346.09% Mar-11 8.80% 6.25% 14.31% 8.15% 1.81% -8.77% Feb-11 4.89% -3.82% 0.24% -3.87% 4.00% 65.38% Jan-11 -13.17% -0.68% -12.75% -9.44% -13.34% 73.33% Dec-10 7.42% 8.21% 2.67% 12.84% 4.91% 44.09% Nov-10 -10.09% 2.37% 0.24% 2.67% 1.20% 0.00% Oct-10 11.04% 14.01% -8.41% -3.12% -5.05% 210.99% Sep-10 7.40% 9.32% 16.64% 12.40% 16.84% 0.00% Aug-10 -8.96% 0.47% 0.34% -2.67% 5.19% 0.00%.

ANALYSIS OF PERFORMANCE. Aug•10 octi z May.12 Dec.12 Jul.13 Apr.15 Nov.15 Jun•16 Jan.17 > Augl Oct.l llay.19 JUI.20.

ADVANTAGES AND DISADVANTAGES. ADVANTAGES. Transparency and security Ease of transactions Risk diversification/Portfolio diversification Rise in acceptance Mining Is Accessible to Anyone High Return Potential Cryptocurrency Is a Potential Hedge Against Inflation Decentralized Cost-effective mode of transaction.

PERSONAL VIEW POINT. The cryptocurrency is of the modern investment avenues in the world. Earlier people were not so much aware of this investment options, but with times the investment pattern has evolved to a new horizon. People are investing more in cryptocurrencies than in traditional investment options. Even the investment pattern is also shifting from equity to the new segment. Though this segment is providing a huge return within a small span of time or over a long period, as compared to other financial instruments, but we must also consider that the returns are very volatile and unstable as compared to equity investments. The investors need to get more aware and education regarding the cryptocurrency investment. A long tussle was going on that whether the government would make it a legalised form of currency, but after the last Union Budget by our Financial Minister, Nirmala Sitharaman it was clear that government has imposed 30% flat tax rate on all income from the cryptocurrency investment while also aiming to introduce Digital Currency in 2022-2023. It has also highlighted that losses on these crypto-assets cannot be offset to a later date. This means that any loss encountered during the trading of these assets will not be set off with other income sources and that it will be carried on to subsequent years. Further elaborating on the taxation model for such virtual currencies, the Finance Minister outlined that all crypto transfers above a certain monetary threshold will be liable for a 1% TDS deduction, which will help the authorities keep track of the movement of such currencies in the economy. Ahead of the Budget, many prominent stakeholders demanded more clarity on cryptocurrencies, including regarding their corresponding taxation and GST rules. With these developments, it is clear that the government does not intend to “ban” cryptocurrencies in the near future. Such recognition of virtual assets in the national Budget and the imposition of clear tax rules has certainly made investors optimistic about their investments..