Everything you need to know about crypto

Brut India

Can you shop with cryptocurrency? What are the new tax rules in India? Aditya Singh demystifies crypto for Brut.  : Crypto India

Transcript

00:00What are Cryptocurrencies?

00:02Intro

00:16What can happen is that money is not controlled by central banks

00:19but is controlled by the public

00:21which has gold properties and can be used for transactions

00:24So, cryptocurrency was born out of this

00:26Cryptocurrencies are completely digital

00:29Just like your current financial system

00:31where you do transactions online

00:33If you look at Bitcoin in cryptocurrency

00:35which we use as an example

00:37It has features like gold

00:39If you mine gold

00:41then you have to work hard to mine it

00:43You have to look at the location, do the expenditure

00:45You have to be a machine to mine gold

00:47Similarly, if you look at Bitcoin

00:49it is limited like gold

00:51which has a supply of 21 million

00:53If you want to mine this

00:55then you have to work hard for it

00:57You have to set up a computer and mining setup

00:59Electricity cost, maintenance cost, etc.

01:01Intro

01:05If Bitcoin is a cryptocurrency

01:07a public cryptocurrency

01:09then who will maintain its ledger?

01:11How can we trust it?

01:13For Bitcoin or any cryptocurrency ledger

01:15technology is used

01:17which is blockchain technology or distributed ledger technology

01:19There are many miners here

01:21who support this network

01:23They provide computing power

01:25which runs the entire network

01:27All these ledgers

01:29are stored in the same computers

01:31everywhere

01:33Whenever there is a transaction

01:35or a block mine

01:37the transactions are noted down on every computer

01:39There is no question that

01:41if there is a note down on every computer

01:43then someone can cheat

01:45In 10 minutes, a new block is generated

01:47where there are transactions

01:49Whenever there is a new block mine

01:51it is checked in every computer

01:53whether the transactions are in line or not

01:55If it is identified that

01:57someone has made a mistake in the ledger

01:59and there is a different transaction

02:01then it will be flagged

02:03There are thousands of computers

02:05which match each other every 5-10 minutes

02:07Let's see if the ledger matches or not

02:09Intro

02:13Mostly if you are looking for

02:15investment in cryptocurrency

02:17then you will get a lot of options

02:19But if you are investing

02:21in a cryptocurrency

02:23which is being adopted worldwide

02:25and it has a use case

02:27which is solving real-world problems

02:29You can buy cryptocurrencies on crypto exchanges

02:31In India, there are a lot of crypto exchanges

02:33which you will get

02:35But please make sure

02:37that when you buy a cryptocurrency

02:39you buy it on a reputable exchange

02:41which is legitimate

02:43and you know that it is in the cryptocurrency market

02:45Mostly, the Indian crypto exchanges

02:47support the INR pair

02:49So, you can directly buy

02:51these cryptocurrencies

02:53with Indian Rupees

02:55Intro

02:57What is the new tax

02:59introduced on cryptocurrencies?

03:01Earlier, if you used to trade in cryptocurrencies

03:03then according to short-term and long-term

03:05capital gains

03:07you had to file the return

03:09according to the tax slab

03:11But now, according to the new tax policies

03:13if you trade in cryptocurrency

03:15it doesn't matter

03:17how much amount you are trading

03:19whether you are below 1 lakh in the tax slab

03:21or above 10 lakh

03:23You have to pay

03:25a flat 30% tax

03:27on the cryptocurrency profit

03:29whenever you trade

03:31But if you are earning

03:33a profit in the cryptocurrency

03:35then you can't do any deduction

03:37For example, if you buy

03:39Bitcoin for INR 10,000

03:41and it becomes INR 20,000

03:43then when you file the tax

03:45you have to pay a 30% tax

03:47on the profit of INR 10,000

03:49Intro

03:53So, if two people want to

03:55do a transaction and both agree

03:57then they can definitely do the transaction

03:59But if your question is

04:01can you use cryptocurrency

04:03as you use Indian Rupees

04:05then the answer is NO

04:07If you want to buy anything

04:09or do any transaction

04:11then you have to accept

04:13By law, because it is a legal tender

04:15they have to accept

04:17But if you go to a place

04:19where you ask them to accept cryptocurrency

04:21then it is their choice

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