A cryptocurrency is a type of digital money used as a medium of exchange
over a computer network that is not always backed and maintained by a country's
central bank or government. Since the introduction of Bitcoin in 2009, hundreds of
different “cryptocurrencies” have been created and accepted for a variety of
transactions in top online marketplaces, the “sharing economy,” as well as more
conventional retailers, producers, charities, and political organisations. This paper will
take a thorough look at the qualities of cryptocurrencies as financial assets. We talk
about how crypto generates value, as well as trading and information platforms. Then
we look at crypto-currencies as alternative financial assets, looking at their returns and
how they interact with bitcoin and each other. We assess their inclusion to investors'
portfolios and demonstrate that, due to their small co-movements with existing assets
as well as with each other, they can certainly improve portfolio diversity. In addition,
we assess three pure crypto-currency portfolios: an equally weighted, a value-weighted,
and one based on the CRIX. The CRIX portfolio has a lower risk than any of the
tradable crypto-currencies individually. We also keep track of how the crypto-currency
sector is evolving. A growth in market value is accompanied by increased liquidity, and
a rising number of cryptos are contributing bigger sums to the total crypto market
capitalization. (Determining the value, size, or quality of) Bitcoin's role and influence
are the emphasis of this chapter. Techno-Indians are discussing, investing, and owning
Bitcoin at a time when India is at its most technologically advanced in history. This
article is the outcome of an investigation on the current and potential role of Bitcoin in
the Indian economy (the process through which individuals make, trade, and purchase
goods). New definitions argue that cryptocurrency is a replacement for fiat currency.
The attention of legal/law-based entities is focused on cryptocurrencies because of the
global interest in it (now under different control). In another country, it is seen as
distinct and distinct. The status of bitcoin in India is now being tested/evaluated. As a
result of this study, it is determined that bitcoin is neither a money or legal tender under
Indian law, but rather a product that may be traded.
Keywords: Assets, Cryptocurrency, Currency, Digital, Economy, Finance.
