A STUDY ON AWARENESS AND ATTITUDE TOWARDS

CRYPTOCURRENCY IN COIMBATORE
A Project report submitted to Bharathiar University, Coimbatore-641046

In partial fulfilment of the requirement for the

Award of the degree of

MASTER OF COMMERCE WITH COMPUTER APPLICATIONS

Submitted by

D. THAMIZHARASI (RCAS2020MCC013)

Under the guidance of

Ms. S. SHOBANA, M. COM (IB).,

Assistant Professor,

Department of Commerce

RATHINAM COLLEGE OF ARTS AND SCIENCE

(AUTONOMOUS)

(Accredited by NAAC with ‘A++’ Grade and an ISO 9001:2008 Certified Institution)

(Affiliated to Bharathiar University)

Rathinam Techzone, Pollachi Road, Eachanari, Coimabatore-641021

APRIL-2022
 CERTIFICATE

This is to certify that the project work entitled “A STUDY ON AWARENESS AND ATTITUDE

TOWARDS CRYPTOCURRENCY IN COIMBATORE” submitted to the Bharathiar

University, in partial fulfilment of the requirements for the award of the degree of MASTER OF

COMMERCE WITH COMPUTER APPLICATIONS is a record of original work done by

D. THAMIZHARASI (RCAS2020MCC013) during the period 2021-2022 of their study in the

department of commerce, at Rathinam College of Arts and Science (Autonomous) under my

supervision and guidance.

Place: Coimbatore

Date:

……………… ……………….

Signature of the HOD Signature of the Guide

……………… ………………

Internal Examiner External Examiner

VIVA VOICE EXAMINATION HELD ON……………….

 DECLARATION

D. THAMIZHARASI (RCAS2020MCC013), hereby declare that the project work entitled “A

STUDY ON AWARENESS AND ATTITUDE TOWARDS CRYPTOCURRENCY IN

COIMBATORE” submitted to the Bharathiar University, in partial fulfillment of the

requirement for the award of the degree of MASTER OF COMMERCE WITH COMPUTER

APPLICATIONS is a record of original project work done by us during 2021-2022 under the

supervision and guidance of Ms. S. SHOBANA, M.COM(IB)., Assistant professor, Department

of commerce, Rathinam college of Arts and Science (Autonomous), Rathinam TechZone

Campus, Pollachi Road, Eachanari, Coimbatore-641021.

PLACE:

DATE:

CANDIDATE SIGNATURE
 ACKNOWLEDGEMENT

I thank almighty, without whom grace; my work would not have been completed.

I take this opportunity to express gratitude to Dr. MADAN. A. SENDHIL, M.S., Ph.D., Chairman
of Rathinam Group for permitting to do the project work.

My sincere thanks to Dr. R. MANICKAM, MCA., M.Phil., Ph.D., CEO Academic affairs for
his continuous motivate in completing this project work.

I acknowledge my deep sense of gratitude to our Principal Dr. R. MURALIDHARAN, M.Sc.,

MCA., M.Phil., Ph.D. Rathinam college of Arts and Science (Autonomous) for having given
me an opportunity to get a practical experience beyond the bounce of theoretical knowledge
through project work.

We extend our sincere thanks to Dr. T.M. HEMALATHA, M.COM., MBA., MA., B.Ed.,
PGDCS., Ph.D., Associate Professor and Dean of Department of commerce for providing her
valuable guidance, comment and suggestion throughout the course of the project.

I would like to express my hearty thanks to my supervisor Ms. S. SHOBANA, M.COM(IB).,

Assistant professor, Department of commerce for her valuable guidance and kind advice,
Encouragement and creative suggestion at every stage of this project work.

I express sincere thanks to our department faculties for their effort in guiding me in doing this
project.

I express my gratitude to my parents, friends and all other for their support to complete this
project.

D. THAMIZHARASI
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Submission Information

Author Name Thamizharasi D

Title AWARENESS AND ATTITUDE TOWARDS CRYPTOCURRENCY I..
Paper/Submission ID 484650
Submission Date 2022-04-04 15:21:53
Total Pages 5
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 AWARENESS AND ATTITUDE TOWARDS CRYPTOCURRENCY IN
COIMBATORE

Thamizharasi D

ABSTRACT:

Money is a medium of exchange; it allows people to obtain what they need to live.
3
Cryptocurrencies are a type of currency as well, but they are not available in physical form.
Cryptocurrency is a form of digital asset that uses a distributed ledger to keep track of transactions
1
or uses blockchain technology to make transactions secure. The purpose of this study is to
determine how much knowledge about cryptocurrencies exists in Coimbatore. The study's data
was gathered by the distribution of structured questionnaires, with 150 of them being analyzed. A
3
convenient sampling method is adopted to select the sample respondents. The study's findings
suggest that the majority of people are aware of cryptocurrency.

Keywords: Cryptocurrency - Digital Asset - Blockchain

INTRODUCTION:

A cryptocurrency is a sort of virtual or digital currency that can be used to make payments.
It works in a similar way to real cash, it doesn't have a any physical form and it relies on encryption
to function. Certain conditions must be met before new units can be introduced because
cryptocurrencies operate freely and decentralized, without a bank or central authority. In the
presence of third parties, cryptography is a method of securing communication by using encryption
and decryption. Cryptography makes use of computational algorithms and public keys, which act
as a user's digital identity and are shared with everyone, and a private key, which acts as a user's
digital signature. A private key is kept concealed. We can use bitcoin to conduct transactions at
any time of day or night, and there are no limits on purchases or withdrawals. It is compared to
opening a bank account, which requires the submission of papers and other paperwork. Through
20 10
innovative technologies, the world has been transformed into a cashless society. One of the
tremendous innovations in money is cryptocurrency, or digital money, which is not regulated by
 6
any authority or central bank and is a universal currency. Simultaneously, there are some issues
with this new currency. Hence, many countries stepped back from its implementation. That’s why
there is an important need to understand cryptocurrency trading in India; how it operates, how it
10
evolves, and the players who are involved in these transactions. Lack of awareness has its roots in
1
many things in general. People are unsure of what to do in the event that they are subjected to
fraud by them.

OBJECTIVES OF THE STUDY:

 To understand the awareness about Cryptocurrency in Coimbatore.

 To determine people's willingness to use cryptocurrency as a form of investing.
21 23
 To know the various applications used for buying and trading the cryptocurrencies.

REVIEW OF LITERATURE:
2
1. Dr. Anil Kumar V and Swathi P (2019) conducted an investigation into the benefits
and drawbacks of Bitcoin and analyzed the legal status, challenges, and opportunities of
4
Bitcoin in India. This paper is based on secondary data. The study concluded that the lack
of legislation is considered the main concern in cryptocurrency systems. Because bitcoins
have already achieved widespread popularity around the world, banning them in India is
not an option. It would be necessary to regulate the industry. The sooner users finish this,
the better.
2. Mr. J. P. Jaideep and Mr. K. Rao Prashanth Jyoti (2019) conducted a study on "A
Study on Cryptocurrency in India – Boon or Bane with special reference to Bitcoin." The
7
current study is concerned with measuring the role and impact of Bitcoin. As India is in
19
the technical era, techno-Indians speak, invest, and possess Bitcoin. The study shows that
9
there are some firms accepting the Bitcoin trading. An investigation has begun into the
16
transparency and business module of those individuals and firms who deal with Bitcoin.
24 4
3. Akshay A, Swati Shukla (2019) aimed to study the awareness and perception level of
12
cryptocurrency. The survey was completed using a questionnaire-based survey method
called primary data collection. According to the poll results, most people are aware of
cryptocurrency and would like to include it in their investing portfolio because it offers
 a good return. However, due to a lack of restrictions, they are unwilling to invest in
cryptocurrency.
4. Dr Mubarak, Hosmani Manjunath (2021) conducted a study to compare the
investment risk between Bitcoin and gold. The secondary data was taken to achieve the
investigation. This study concluded that to make a speculative bet on bitcoin, do it with
it functioning in regular trading and compare the investment risk between bitcoin and
a small single-digit portion of assets. There isn’t sufficient evidence to suggest either
will deliver more consistent returns. But investing in gold is better because it will give
a consistent return as compared to bitcoin.

METHODOLOGY:

The study on cryptocurrency awareness and attitudes in Coimbatore was carried out
utilizing primary survey research using a convenience sampling technique. The study is mainly
based on primary data which is collected from the respondents in Coimbatore through the
circulation of a well-framed questionnaire and necessary guidance was given to the respondents
for filling up the questionnaire. In order to analyses the data, we used SPSS software. Descriptive
18
data analysis is used to calculate the results of this study. Secondary data was gathered from a
variety of source including financial websites the government of India, books, journals, news-
papers, and magazines, to meet the research's objectives.

DATA ANALYSIS AND INTERRUPTION:

This section breaks down the study's descriptive analysis into three sections: awareness,
ownership/adoption, and Cryptocurrency use.
Figure 1. Awareness of Cryptocurrency among Different Gender

Have you heard of Cryptocurrency?

GENDER Total
YES NO
68 11 79
Male
58.1 33.3 52.7
49 22 71
Female
41.9 66.7 47.3
117 33 150
Total
78 22 100
 Figure 1. Awareness of Cryptocurrency among Different Gender

AWARENESS OF CRYPTOCURRENCY AMONG

150 DIFFERENT GENDER

117
100
68 33
49
50 22
11

0 13
Male Female Total
Have you heard of Cryptocurrency? YES Have you heard of Cryptocurrency? NO

Results show that overall, 78% of people are aware of Cryptocurrency. Compared to
Females, Male gender is more aware. Level of awareness among male is 58.1% while 41.4%
females reported their familiarity with Cryptocurrency. Table 1 & Figure 1 represents
Cryptocurrency awareness level among different gender. Awareness of Cryptocurrency among
Coimbatore People is measured by making its comparison with various demographic factors like
Age, Gender, Area, Educational Qualification, Occupation, Annual Income, and Computer Skills.

FINDINGS AND SUGGESTION:

8
People in the age group between 25 and 29 years reported the highest level of awareness.
14
The actual statistics show the reason for owning cryptocurrency is shown to be an interest in new
15 22
technology. People with higher education and higher income levels tend to be more aware of
cryptocurrency. People reported that they do not trust any private currency. And also, it’s not a
widely accepted mode of payment. Males are getting more involved in this new trend as it is a
whole new concept for investment purposes. Besides investing in this, male investors prefer to
invest in the stock market and mutual funds. Users are concerned about their privacy when using
Bitcoin technology. Bitcoin has some potential in the Indian market and may be employed in the
future.

The current study's findings imply that in order for consumers to accept cryptocurrency as
an online payment option, first they must become aware of it. When adopting Bitcoin technology,
11
users are concerned about their privacy. In the Indian market, Bitcoin has some potential and may
 17
be used in the future. According to the conclusions of the current study, customers still must be
aware of the cryptocurrencies before accepting them as an online payment option.

CONCLUSION:

In an era where cryptocurrencies have grown more widely accepted than ever, and have
mass adoption in mainstream markets, Numerous applications and websites that allow the purchase
and transfer of cryptocurrencies, as well as payment merchants like PayPal, allow transactions to
be completed using cryptocurrencies. Cryptocurrencies are a fascinating financial invention with
several study possibilities. As with many new technologies, there is a lot of misunderstanding
5 2
about the core notion of cryptocurrencies, in addition to the methods for valuing them. Finally,
5
there have been many possibilities for research opportunities in the cryptocurrency area. The most
liquid cryptocurrencies had a bubble burst in 2022, but the study potential goes well beyond that.
In this new field of finance and economics, there is a lot to be done.

REFERENCE:

 Dr. Anil Kumar V, Swathi P (2019), “A Study on Opportunities and Challenges of

Cryptocurrency in India with Special Reference to Bitcoin”, Volume 6 | Issue 1 | E
ISSN 2348 –1269 - PRINT ISSN 2349-5138 | March 2019
 Mr. J. P. Jaideep, Mr. K. Rao Prashanth Jyoti (2019), “A Study on Cryptocurrency
in India – Boon or Bane With special reference to Bitcoin”, JETIR | Volume 6 | Issue
2 | February 2019
 Swati Shukla, Akshay A (2019) “A Study on the perception and awareness of
Cryptocurrency in Bangalore”, Indian Journal of Applied Research | Volume 9 | Issue
4 | PRINTISSN No 2249-555X | April-2019
 Dr Mubarak, Hosmani Manjunath (2021), “A Study on Cryptocurrency in India”.
International Journal of Research and Analytical Reviews | Volume 8 | Issue 1 | (E-
ISSN 2348-1269, P- ISSN 2349-5138) | February 2021
 www.investopedia.com , www.wikipedia.com
 TABLE OF CONTENTS

CHAPTER PAGE
CHAPTER TITLE
NO. NO.
I INTRODUCTION AND METHODOLOGY OF THE STUDY 1-4
1.1 Introduction 1
1.2 Objectives of the study 2
1.3 Statement of the problem 2
1.4 Research Methodology 2
1.5 Sampling Techniques 3
1.6 Framework Analysis 3
1.7 Scope of the study 3
1.8 Limitation of the study 3
1.9 Chapter Scheme 4
II REVIEW OF LITERATURE 5-14
2.1 Introduction 5
2.2 Reviews of the Literature 5
2.3 Conclusion 11
Reference 12
III OVERVIEW OF THE STUDY 15-37
3.1 Introduction 15
3.2 Evolution of Money/Currency 15
3.3 Introduction of Cryptocurrency 18
3.3.1 History of Cryptocurrency 19
3.3.2 Classification of Cryptocurrency 20
3.3.3 Advantages of Cryptocurrency 20
3.3.4 Issues linked with Cryptocurrency 21
3.3.5 How Cryptocurrencies work 22
3.3.6 Cryptocurrency Vocabulary 27
3.37 Examples of Cryptocurrency 30
3.4 Cryptocurrency in India 32
3.5 Conclusion 37
CHAPTER PAGE
CHAPTER TITLE
NO. NO.
IV ANALYSIS AND INTERPRETATION 38-74
4.1 Introduction 38
4.2 Socio Economic Profile 38
4.3 Respondents Awareness of Cryptocurrency 47
4.4 Respondents willingness to invest in Cryptocurrency 54
4.5 Factors Encouraging and Discouraging to Buy Cryptocurrency 62
4.6 Comparing Respondent’s Demographic Factors with Cryptocurrency
65
Knowledge
V SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 71-74
5.1 Introduction 71
5.2 Summary of Findings 71
5.3 Suggestions 72
5.4 Conclusion 73
APPENDIX
Bibliography 75
Questionnaire 79
Article publication
 LIST OF TABLES

TABLE PAGE
NAME OF THE TABLE
NO. NO.
4.2.1 Area of the Respondents 39
4.2.2 Age of the Respondents 40
4.2.3 Gender of the Respondents 41
4.2.4 Educational Qualification of the Respondents 42
4.2.5 Occupation of the Respondents 43
4.2.6 Marital Status of the Respondents 44
4.2.7 Monthly income of the Respondents 45
4.2.8 Family type of the Respondents 46
4.3.1 Respondents Technology Background 47
4.3.2 Respondents Technology Background Classification 48
4.3.3 Respondents Familiar with the word Cryptocurrency and Bitcoin 49
4.3.4 Respondents Awareness of concept of Cryptocurrency 50
4.3.5 Respondents Awareness of Concept of Cryptocurrency classification 51
4.3.6 Sources of Getting Knowledge about Cryptocurrency 52
4.3.7 Respondents familiar with various Cryptocurrency 53
4.4.1 Respondents interest to invest in Cryptocurrency 54
4.4.2 Respondents Major concern with Investing in Cryptocurrency 55
4.4.3 Respondents opinion about Cryptocurrency is safe investment Option 56
4.4.4 Respondents opinion about Cryptocurrency worth in 5 years 57
4.4.5 Respondents anticipating about Cryptocurrency Crash 58
4.4.6 Respondents Risk Investment among Stock market and Cryptocurrency 59
4.4.7 Respondents Reasons to use Cryptocurrency 60
4.4.8 Respondents Cryptocurrency Recommendations to others 61
TABLE PAGE
NAME OF THE TABLE
NO. NO.
4.5.1 Factors Considered While Investing in Cryptocurrency 62
4.5.2 Factors Encouraging to Buy Cryptocurrency 63
4.5.3 Factors Discouraging to Buy Cryptocurrency 64
4.6.1 The Awareness of Cryptocurrency Compared with the Respondents Gender 65
4.6.2 The Awareness of Cryptocurrency Compared with the Respondents Area 66
4.6.3 The Awareness of Cryptocurrency Compared with the Respondents Age 67
4.6.4 The Awareness of Cryptocurrency Compared with the Respondents Education 68
4.6.5 The Awareness of Cryptocurrency Compared with the Respondents Occupation 69
The Awareness of Cryptocurrency Compared with the Respondents Monthly
4.6.6 70
Income
 LIST OF CHARTS

CHART PAGE
NAME OF THE CHART
NO. NO.
4.2.1 Area of the Respondents 39
4.2.2 Age of the Respondents 40
4.2.3 Gender of the Respondents 41
4.2.4 Educational Qualification of the Respondents 42
4.2.5 Occupation of the Respondents 43
4.2.6 Marital Status of the Respondents 44
4.2.7 Monthly income of the Respondents 45
4.2.8 Family type of the Respondents 46
4.3.1 Respondents Technology Background 47
4.3.2 Respondents Technology Background Classification 48
4.3.3 Respondents Familiar with the word Cryptocurrency and Bitcoin 49
4.3.4 Respondents Awareness of concept of Cryptocurrency 50
4.3.5 Respondents Awareness of Concept of Cryptocurrency classification 51
4.3.6 Sources of Getting Knowledge about Cryptocurrency 52
4.3.7 Respondents familiar with various Cryptocurrency 53
4.4.1 Respondents interest to invest in Cryptocurrency 54
4.4.2 Respondents Major concern with Investing in Cryptocurrency 55
4.4.3 Respondents opinion about Cryptocurrency is safe investment Option 56
4.4.4 Respondents opinion about Cryptocurrency worth in 5 years 57
4.4.5 Respondents anticipating about Cryptocurrency Crash 58
4.4.6 Respondents Risk Investment among Stock market and Cryptocurrency 59
4.4.7 Respondents Reasons to use Cryptocurrency 60
4.4.8 Respondents Cryptocurrency Recommendations to others 61
CHART PAGE
NAME OF THE CHART
NO. NO.
4.5.1 Factors Considered While Investing in Cryptocurrency 62
4.5.2 Factors Encouraging to Buy Cryptocurrency 63
4.5.3 Factors Discouraging to Buy Cryptocurrency 64
4.6.1 The Awareness of Cryptocurrency Compared with the Respondents Gender 65
4.6.2 The Awareness of Cryptocurrency Compared with the Respondents Area 66
4.6.3 The Awareness of Cryptocurrency Compared with the Respondents Age 67
4.6.4 The Awareness of Cryptocurrency Compared with the Respondents Education 68
4.6.5 The Awareness of Cryptocurrency Compared with the Respondents Occupation 69
The Awareness of Cryptocurrency Compared with the Respondents Monthly
4.6.6 70
Income
 CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

We all are well aware of the term currency or money. Money is a medium of exchange;
it allows people to obtain what the need to live. Bartering was one way that people exchanged
goods for other goods before money was created. Money is stated as the basic requirement of
the people for getting different goods and services. A cryptocurrency is also a form of currency
but it is not available in physical form. It is a newly developed currency that is an internet
currency and can only be used digitally. In other words, cryptocurrency is a newly invented
form of currency that is termed digital or virtual currency.

The cryptocurrency or digital currency is gaining popularity at present. The data of

transactions of the cryptocurrency is recorded and stored in the blocks of blockchain
technology. The advent of cryptocurrency and its use in the future will be changing the mode
of utilization of money by the people. The new ways will develop for the exchange of the
currency for goods and services as it is a digital currency and is decentralized. Bitcoin, Ripple,
Dogecoin are some of the examples of cryptocurrencies. The use of cryptocurrency will result
in making society a better one. It is because the transaction process in this system is more
efficient and secure. This will help in reducing the errors, frauds, and cheating taking place in
the transactions and paper works. The record of every transaction is available in the blocks and
making changes or tampering of records is impossible. This in turn will also have a positive
impact on the economy of the nation.

Cryptocurrency is a set of binary data and that is used as a medium of exchange for
goods and services. The record of every coin in cryptocurrency is being stored in the digital
ledger cryptographically in a secure way so that no changes can be made in the transaction
data. The people get the authority of the token according to the amount they have given for
stake in cryptocurrency. It is stated as the centralized currency after it is issued by a single user.
Later when it is stated as decentralized, its options are available on the digital ledger of every
connected user in the blockchain. Bitcoin is referred to as the first decentralized cryptocurrency
that was invented in the year 2009. There was the invention of different cryptocurrencies after
the invention of Bitcoin. Cryptocurrency is well designed by using every modern technique
like the internet and developed software. The invention of cryptocurrency has been greatly

1
helpful in fostering digitalization. The control and management of cryptocurrency by the
blockchains are encrypted and this is a boon for investors and businessmen. The countries have
to make regulations to get more clarity about the use of cryptocurrencies and blockchains. The
establishment of specific rules and guidelines by the government will aid in reducing the
limitations of this wonderful technology. This will enable digital currency to become more
eminent and successful in the world in the coming future.

1.2 OBJECTIVES OF THE STUDY

The study has the following objectives:

❖ To describe the socio-economic background (SEB) of the respondents

❖ To understand the awareness about Cryptocurrency among the youth of Coimbatore.

❖ To determine the willingness of people to choose Cryptocurrency as an investment tool.

❖ To know the factors encouraging and discouraging to buy cryptocurrency

1.3 STATEMENT OF THE PROBLEM

World has transforming in to cash less transactions through innovating and making
transactions by digital money. One of the tremendous innovations in money that is crypto
currency it is digital money, not regulated by any authority and central bank, universal
currency, at the same time there are some problems associated with this new currency hence
many countries step back from its implementation among those India is one of the countries
prohibited using and mining Bitcoins. But as per the order of supreme court now trading
through Bitcoin is no more illegal in India from That’s why it is an important need to understand
about Bitcoin trading in India, how it operates, how it was evolved in India, players who are
involving in these transactions. Lack of awareness has its root in many things in general and
in particular it lies in illiteracy in India. People do not know what they should do in case if they
are to be subject to fraud by them.

1.4 RESEARCH METHODOLOGY

The present study is mainly based on primary data which is collected from the
respondents in Coimbatore through issue of questionnaire. The questionnaire contains
questions relating to the socio–economic profile of sample respondents, awareness about
Cryptocurrency and factors influence to buy cryptocurrencies. Necessary guidance was given

2
to the respondents for filling up the questionnaire. To satisfy the objectives of the research,
secondary data also used from various publications by financial websites, government of India,
journals, newspapers, books and magazines etc.

1.5 SAMPLING TECHNIQUE

The data required for the study have been collected by issue of structured questionnaire
in order t know the details of respondent’s socio-economic profile, youngsters’ awareness
about cryptocurrency and factors influencing to buy cryptocurrencies. Of the total 150
questionnaires issued, 150 questionnaires are collected, 150 questionnaires are taken for
analysis. Convenience sampling method is adopted to select the sample respondents.

1.6 FRAMEWORK OF ANALYSIS

The main intention of the study is to find out the awareness about cryptocurrency and
know the factors influencing to buy Cryptocurrencies. The primary data collected were
reformulated and consolidated into master table. Simple percentage, weighted average ranking
and chi-square test are applied to process the data and draw inferences. Inferences have been
made by comparing the calculated chi-square value with the respected table value.

1.7 SCOPE OF THE STUDY

As per studies, the cryptocurrency adoption of the cryptocurrency market has increased
by over 880% between June 2020 to June 2021 worldwide. In India, around 15 million people
have made an investment in private cryptocurrency holdings. There is a fascination in young
people about cryptocurrency adoption. The research was conducted to find out the awareness
of cryptocurrencies among the youngsters in Coimbatore.

1.8 LIMITATIONS OF THE STUDY

The data collected is primary in nature, which is based on questionnaire and hence the
result would bear all the limitations of the primary data. The respondents residing in
Coimbatore alone are included in the study and hence the results of the study cannot be
generalized to other areas. The research is just limited to Bitcoins and doesn’t consider the
awareness about other cryptocurrencies.

3
1.9 CHAPTER SCHEME

The Study is divided in to five chapters including Conclusion and Suggestions

CHAPTER I

• First Chapter presents introduction of the study, statement of the problem, statement
of the problem, objective of the study and scope of the study. It also deals with
Research Methodology including sample size, collection of data. Lastly this
chapter highlights the limitation of the study.

CHAPTER II

• Second Chapter is fully deals with Review of Literature of the study.

CHAPTER III

• Third Chapter deals with overview or profile of the Study.

CHAPTER IV

• Fourth Chapter deals with Analysis and Interpretation of the Data of the study. Data
which were collected from the survey were presented and analyzed in this chapter.

CHAPTER V

• Fifth Chapter deals with findings, suggestions for to improve the employee
motivation in providing quality customer service and conclusion of the study.

4
 CHAPTER II

REVIEWS OF LITERATURE

2.1 INTRODUCTION:

Review of literature is accredited by researcher with topic and conclusion evolved by

earlier studies. It also helps to find the scope for further study and to frame appropriate
objectives for proposed evaluation since. This study aims to analyze the awareness and attitude
towards Cryptocurrency.

2.2 REVIEWS OF LITERATURE:

1. Anmol Mehrotra, Dr. Vanishree MR (2018) conducted a study on “A Study to

Understand the Awareness about Cryptocurrency among the Youth Population in
Bangalore”. The objective of the study is to analyze and understand factors like
age and gender has any relation to the understanding and knowledge of
Cryptocurrency. This research has been carried on primary data. Primary Data was
collected using a structured questionnaire distributed via Google Forms. The
sample size of the data was 50. The different data analysis techniques used are
Correlation of the Primary Data. The study concluded that, the government needs
to take into consideration that the citizens are still unaware of the fact that
something like this even exists. The younger generation is always good at adopting
new technologies but it’s older generation that faces problems.

2. Dr. Neha Parashar, Ms. Farida Rasiwala (2018) conducted a study on “A study
on investor’s awareness and perception regarding investment in Cryptocurrency
with special reference to Bitcoin”. The objective of the study is, to know investors
opinion about future of bitcoin in India and understand the investor opinion
regarding government intervention and involvement to develop bitcoin as legal
mode for cash less transactions. The study concluded that, the future of bitcoin is
questionable as Bitcoin has severe disadvantages such as high price volatility,
susceptibility to hacking, no protection from a central bank and no consumer
protection.

5
3. Dr. Kuldeep Chand, Sunidhi Kashyap (2018) conducted a study on, “Impact of
Cryptocurrency in India”. The study aims to know about impact of cryptocurrency
in India. The study concluded that the form of this new cryptocurrency is not
acceptable by many people and availability of the cryptocurrency is little bit
difficult therefore the high market capitalization is not there even though Bitcoin is
still the most popular form of currency which is digital in nature because of its
widespread and is accepted by many businesses and by the retailers.

4. Flamur Bunjaku, Olivera Gjorgieva-Trajkovska, Emilija Miteva Kacarski

(2018) conducted a study on “Cryptocurrencies – Advantages and Disadvantages”.
The paper elaborates different aspects of cryptocurrencies, starting with their early
development, challenges and risks, opportunities, advantages and disadvantages,
and their future. In addition, the paper covered issues related to the practical and
technical function of cryptocurrencies. It was concluded that is not easy to predict
the future of cryptocurrencies, since there is a lot to be done especially in the field
of formal regulations. However, the banks and other financial institutions should
see and consider cryptocurrencies as an alternative for the financial transactions in
the future.

5. Redhwan Al-Amri, Nur Haryani Zakaria, Adib Habbal and Suhaidi Hassan
(2018) conducted a study on “Cryptocurrency Adoption: Current Stage,
Opportunities, and Open Challenges”. This paper’s goal is to identify the current
stage of cryptocurrency adoption and the models that have been used as well as the
adoption challenges that need to be addressed in future studies. The systematic
literature review conducted shows a lack of methodology used to gather the data.
The results show that the cryptocurrency adoption literature can be classified
according to three main classifications: qualitative research, quantitative research
and others. The results of the SLR reveal that there is a lack of study focusing on
the factors that are significantly influenced on the acceptance of cryptocurrency.

6
6. Shailak Jani (2018) conducted a study on “The Growth of Cryptocurrency in India:
Its Challenges & Potential Impacts on Legislation”. This paper investigates the
user’s expectations of the future of cryptocurrency. It also explores the users’
confidence of dealing with cryptocurrency in a time that using such virtual money
is not fully controlled and regulated. A pilot study has been conducted in March
2018 to collect data about different aspects of cryptocurrency. The study concluded
that, the future of Cryptocurrency concept is promising, revealing more
opportunities to bring positive changes and progress to e-Business and e-Payment
sectors. With the rapid progress and improve of technology, cryptocurrency will not
stop progressing.

7. Prof. Blesson James, Prof. Manjari Parashar (2018) conducted a study on,
“Cryptocurrency: An Overview on Its Impact on Indian Economy”. The objectives
of this study are to learn the impact of cryptocurrency on Indian economy and the
current status of cryptocurrency in India and the future it holds. The study also
focuses on the present situation and future prospects of cryptocurencies in India.The
study concluded that, the number of investors in cryptocurrency is increasing rather
swiftly over the last few years. Indian government should take responsible steps
now to regulate such currency as its user in India is rapidly growing. Future of
cryptocurrency in India looks promising and there is ray of hope.

8. Mark P. Doblas (2019) conducted a study on “Awareness And Attitude Towards

Cryptocurrencies In Relation To Adoption Among College Students”. This study
aimed at determining the level of awareness and attitude of college students towards
cryptocurrency and how these may result to eventual decision to adopt. The study
utilized a descriptive research design utilizing a researcher made questionnaire as
research instrument. Finally, the study concluded that, attitude towards
cryptocurrency and level of awareness significantly influence an individual’s
willingness to adopt cryptocurrency.

7
9. Swati Shukla, Akshay. A (2019) conducted a study on “A Study On The
Awareness And Perception Of Cryptocurrency In Bangalore”. This study aimed to
study the awareness and perception level of cryptocurrency among people in
Bangalore. . The data have been collected through Primary Data collection which
survey Method based on questionnaire. The study concluded that people in general
are aware of the Cryptocurrency and they would like to see it as part of their
investment portfolio as it provides good return. But they are not willing to invest in
Cryptocurrency due to lack of regulation from Government and regulatory
authorities.

10. Maria Gagarina, Timofey Nestik, Tatiana Drobysheva (2019) conducted a

study on “Social and Psychological Predictors of Youths’ Attitudes to
Cryptocurrency”. The objective of the study were to verify the “Attitudes Toward
Cryptocurrencies Questionnaire” and to identify predictors of attitudes toward
BitcoinThe primary and secondary data were used in this study. This study
concluded that, young people who seek financial autonomy and do not trust social
institutions are ready to use cryptocurrency.

11. Shikha Agarwal, Rakhi Arora (2019) conducted a study on “Hype around
Bitcoin: Awareness and Prospective in India”. The objectives of the study are, to
know about knowledge of bitcoin among individuals and evaluate the factors which
influence buying decision of bitcoin. The study is based on both primary data and
secondary data. The primary data was collected from 53 respondents through the
google questionnaire and secondary data was collected from magazines, online
journals and internet. The study reveals that male and female both are familiar with
this currency and have basic information related to bitcoin such as low transaction
fees, easy to use, make international payment speedy, no requirement of third party,
highly volatile, irreversible transaction, etc.

8
12. Mr.J.P.Jaideep, Mr. K.Rao Prashanth Jyoty (2019) conducted a study on “A
Study on Cryptocurrency in India – Boon or Bane With special reference to
Bitcoin”. The present study is focused on assessing the role and impact of Bitcoin.
As India is in the technical era, techno-Indians speak, invest, and possess Bitcoin.
The study reveals that, there are some firms accepting Bitcoin, the investigation has
begun about the transparency, business module of those firms and the people who
deal with Bitcoin.

13. Dr. Anil Kumar V, Swathy. P (2019) “A Study on Opportunities And Challenges
of Cryptocurrency In India With Special Reference to Bitcoin”. The objectives of
the study are, to know the advantages and drawbacks of Bitcoin and analyze the
legal status, challenges and opportunities of Bitcoin in India. This paper is purely
based on secondary data referring to various sources such as journals, newspaper
articles, websites and statutory reports. The study concluded that the lack of
legislations is considered as the main concern in cryptocurrency systems. Bitcoins
have already gained wide acceptance around the world- hence banning them would
not be an option in India. Instead, this industry would need to be regulated. The
sooner this is done, the better.

14. Ms. Neetu Jora, Dr Naveen (2020) conducted a study on “Investors Attitude
towards Cryptocurrency- based on Gender”. This study aimed to analyse and
understand the attitude of gender towards cryptocurrency. The questionnaire was
formed to collect data about knowledge, experience, trust, and other investment
factors of the gender towards cryptocurrency. The research aimed to analyze the
data collected and conclude the overall attitude of male/ female towards
cryptocurrency. The Study shows that both male and female investors are inclined
towards cryptocurrencies.

15. Saloni Sunilkumar Doshi (2020) conducted a study on, “A Study of Opinions on
Future of Crypto Currency in India”. The objectives of the study is, to know the
opinions of investors on future of cryptocurrency in India. The researcher selected

9
 25 big investors and 25 small investors from urban area and 25 big investors and 25
small investors from rural area. The study concluded that, The future of the
cryptocurrency concept is promising, showing more opportunities for positive
change and progress in the e-business and e-payment sectors. The big investors are
more positive than small investors towards future of cryptocurrency in India. The
investors of urban area are more positive than investors of rural area towards
cryptocurrency in India.

16. Greeshma Francis (2020) “A Study on Growth and Future Prospectus of Crypto
Currency in Global Market”. The objective of the study is to analyses different
types crypto currencies and identify the growth and future prospectus of crypto
currency. Cryptocurrency can bring more positive changes to e-Business and e-
Payment sector. However cryptocurrency doesn’t get that much of trust yet. Many
concerns, challenges and issues are existing in many cryptocurrency platforms.
Until cryptocurrency is being well regulated and controlled, users need to take extra
precautions of using such virtual money. So the lack of legislations is considered as
the main concern in cryptocurrency systems.

17. Saad Alaklabi, Kyeong Kang (2021) conducted a study on “Perceptions towards
Crypto currency Adoption: A case of Saudi Arabian Citizens”. The purpose of this
study is to explore the factors that influence the intention of Saudi citizens to
become crypto currency users. The data collected were analyzed using SPSS. The
study involved 277 participants, of whom 72% were men and 28% were women.
The results showed that variables such as subjective norms, security risk, perception
of utility, and enjoyment influence the adoption and use of cryptocurrencies.

18. Zakia Khurshid Kayani , Rashid Mehmood , Ayaz ul Haq , Junaid Ahmad
Kayani , Anum Rashid (2021) conducted a study on “Awareness And Adoption
Of Blockchain: Customer’s Intention To Use Bitcoin In Pakistan”. This study aims
to explore the awareness, ownership usage and adoption of Bitcoin in Pakistan.
Present study uses a sample of 200. The data for this study is primary that is

10
 collected directly from consumers. The tool that is used for the collection of data is
questionnaire. Overall the study concluded that, Pakistanis who fall in the category
of young and early adulthood are more aware of Bitcoin as compare to any other
age group. Similarly, people with higher education and higher income levels tend
to be more aware of bitcoin.

19. Dr Mubarak, Hosmani Manjunath, (2021) conducted a study on “A Study on

Cryptocurrency in India”. This study aims to compare the investment risk in
between the Bitcoin and gold. The secondary data necessary for completing the
investigation will be collecting from the published sources in the academic libraries,
web sites, books, journals, magazines, etc. The study concluded that, to make a
speculative bet on bitcoin, do it with a it’s functioning in regular trading and to
compare investment risk in between Bitcoin small, single-digit, portion of assets.
There isn’t sufficient evidence to suggest either will deliver more consistent returns.
But investing in gold is better because it will give consistent return as comparing to
bitcoin.

20. Jake Mc Morrow, Mona Seyed Esfahan (2021) conducted a study on “An
Exploration into People’s Perception and Intention on Using Cryptocurrencies”.
This study focuses on the perception and intention to use cryptocurrencies. A
quantitative approach was used to gather data from 102 participants. There were
positive results showing the strength of which independent variables affect people’s
attitude and intention, while also highlighting that some theoretical predictions were
not as influential as it was first thought.

2.3 CONCLUSION

The past literatures reviewed about awareness and attitude towards cryptocurrency
from various angles.

11
REFERENCE:

➢ Anmol Mehrotra, Dr. Vanishree MR (2018), “A Study to Understand the

Awareness about Bitcoins among the Youth Population in Bangalore”,
International Journal of Engineering Technology Science and Research IJETSR |
Volume 5 | Issue 3 | ISSN 2394 – 3386 | March 2018

➢ Dr. Neha Parashar, Ms. Farida Rasiwala (2018), “A study on investor’s

awareness and perception regarding investment in Crypto currency with special
reference to Bitcoin”, International Journal of Scientific and Research Publications
| Volume 8 | Issue 12 | 311 ISSN 2250-3153 | December 2018

➢ Dr. Kuldeep Chand, Sunidhi Kashyap (2018), “Impact of Cryptocurrency in

India”, International Journal of Law Management & Humanities IJLMH | Volume
2, Issue 1 | ISSN: 2581-5369 | 2018

➢ Flamur Bunjaku, Olivera Gjorgieva-Trajkovska, Emilija Miteva Kacarski

(2018), “Cryptocurrencies – Advantages and Disadvantages”, ISSN 1857-9973 |
2018

➢ Redhwan Al-Amri, Nur Haryani Zakaria, Adib Habbal and Suhaidi Hassan
(2018), “Cryptocurrency Adoption: Current Stage, Opportunities, and Open
Challenges”, International Journal of Advanced Computer Research, | Vol 9(44)
ISSN (Print): 2249-7277 ISSN (Online): 2277-7970 | September 2018

➢ Shailak Jani (2018), “The Growth of Cryptocurrency in India: Its Challenges &
Potential Impacts on Legislation”, 2018

➢ Prof. Blesson James, Prof. Manjari Parashar (2018), “Cryptocurrency: An

Overview on Its Impact on Indian Economy”, IJCRT | Volume 6 | Issue 2 | ISSN:
2320-2882 | April 2018

➢ Mark P. Doblas (2019), “Awareness And Attitude Towards Cryptocurrencies In

Relation To Adoption Among College Students”, International Journal of

12
 Advanced Research and Publication | Volume 3 | Issue 4 | ISSN: 2456-9992 | April
2019

➢ Swati Shukla, Akshay. A (2019) “A Study On The Awareness And Perception

Of Cryptocurrency In Bangalore”, Indian Journal Of Applied Research | Volume
9 | Issue 4 | PRINTISSN No 2249-555X | April-2019

➢ Maria Gagarina, Timofey Nestik, Tatiana Drobysheva (2019), “Social and

Psychological Predictors of Youths’ Attitudes to Cryptocurrency”, Behav. Sci.
2019 | Volume 9 | doi:10.3390/bs9120118 | 2019

➢ Shikha Agarwal, Rakhi Arora (2019), “Hype around Bitcoin: Awareness and
Prospective in India”, International Journal of Management IT & Engineering |
Volume 9 | Issue 6 | ISSN: 2249-0558 | June 2019

➢ Mr.J.P.Jaideep, Mr. K.Rao Prashanth Jyoty (2019) , “A Study on

Cryptocurrency in India – Boon or Bane With special reference to Bitcoin”, JETIR
| Volume 6 | Issue 2 | February 2019Saad Alaklabi, Kyeong Kang (2021),
“Perceptions towards Crypto currency Adoption: A case of Saudi Arabian
Citizens”, IBIMA Publishing | Volume 2021 | ISSN: 2165-9982 | July 2021

➢ Dr. Anil Kumar V, Swathy. P (2019),“A Study on Opportunities And Challenges

of Cryptocurrency In India With Special Reference to Bitcoin”, Volume 6 | Issue
1 | E ISSN 2348 –1269 - PRINT ISSN 2349-5138 | March 2019

➢ Ms. Neetu Jora, Dr Naveen (2020 “Investors Attitude towards Cryptocurrency-

based on Gender”, Turkish Journal of Computer and Mathematics Education |
Volume 11 | Issue 2 | 622 – 630 | August 2020

➢ Saloni Sunilkumar Doshi (2020), “A Study of Opinions on Future of Crypto

Currency in India”, International Journal of Research in all Subjects in Multi
Languages | Volume 8 | Issue 11 | (IJRSML) ISSN: 2321 – 2853 | November 2020

13
➢ Greeshma Francis (2020), “A Study on Growth and Future Prospectus of Crypto
Currency in Global Market”, International Journal of Scientific Development and
Research IJSDR | Volume 5 | Issue 3 | ISSN: 2455-2631 | March 2020

➢ Saad Alaklabi, Kyeong Kang (2021) “Perceptions towards Crypto currency

Adoption: A case of Saudi Arabian Citizens”, IBIMA | Journal of Electronic
Banking Systems | Volume 2021 (2021) | Article ID 110411 | ISSN: 2165-9982 |
July 2021

➢ Zakia Khurshid Kayani , Rashid Mehmood , Ayaz ul Haq , Junaid Ahmad

Kayani , Anum Rashid (2021), “Awareness And Adoption Of Blockchain:
Customer’s Intention To Use Bitcoin In Pakistan”, Palarch’s Journal Of
Archaeology Of Egypt/Egyptology | Volume 18 | Issue 8 | 4858-4880 | ISSN 1567-
214x | 2021

➢ Dr Mubarak, Hosmani Manjunath (2021), “A Study on Cryptocurrency in

India”. International Journal of Research and Analytical Reviews | Volume 8 |
Issue 1 | (E-ISSN 2348-1269, P- ISSN 2349-5138) | February 2021

➢ Jake McMorrow, Mona Seyed Esfahani (2021), “An Exploration into People’s
Perception and Intention on Using Cryptocurrencies”. HOLISTICA| Vol 12 | Issue
2 | pp.109-144 | August 2021

14
 CHAPTER III

OVERVIEW OF THE STUDY

3.1 INTRODUCTION

Today, the journey of money starting with gold travels by abstracting towards gold-
based paper money, fiat money, digital and virtual (crypto) money. The digitalization process
that began with payment and transfer transactions in the electronic environment with point of
sale (POS) devices continued with systems such as Digi-Cash, First Virtual, PayPal, Web
Money, E-gold and Liberty Reserve. Currency is regarded as means of exchange for goods
and services and that differs in the different countries. It is stated as the money that we use and
that is required by us to fulfill our different needs. The advancing technology has given rise to
new types of currency and that is named cryptocurrency. It is a currency that is not available
physically but it is a digital currency. It is new technology and thus an interesting topic for all.

3.2 EVOLUTION OF MONEY/CURRENCY

Money, as we use it today, is the result of a long process. Its physical characteristics
are worthless without the value that people place on it. We use it as a medium of exchange,
allowing us to trade goods and services. Standard money did not always exist and in its early
ages, people utilized other forms to exchange goods and services. With the changing
requirements of economies and the evolution of technology, money and payments have
changed considerably. As we speak, credit card transactions and digital currencies enable
people to purchase goods and services virtually, in a matter of seconds.

(i) The Barter economy:

When barter was used as an exchange medium, the needs of people were very
limited. The barter system has been used for centuries and it dates to 6000 BC. This
trading method doesn’t involve money and it relies solely on exchanging goods and
services for other services and goods in return.

Bartering was common among Mesopotamia tribes and it was later adopted by
Phoenicians. Belongings were exchanged for munition, herbs, food, and tea. Salt was
considered a common exchange item and Roman soldiers wanted it so much that their
salaries were paid with it. Europeans traveled around the world to barter crafted items

15
and furs in exchange for silks and perfumes. Livestock was as well demanded in
bartering. If someone owned cows and sheep, it meant they were wealthy.

(ii) Commodity Money:

Similar to barter, commodity money worked under the same principle, with the
only difference that societies placed different values on specific items. Let’s assume
that we have two farmers, X and Y. X is growing olives and Y is growing potatoes.
Farmer X needs potatoes and offers farmer Y olives in exchange, but Y doesn’t need
olives at all. As a result, Y refuses the offer and the exchange fails. This was the main
challenge of barter. It was quite hard to agree on two goods to be exchanged.

Therefore, common things like shells, salt, and pebbles (small stones) were
looked at as commodities for exchange. This enabled farmer X to sell his olives in
exchange for shells (as money), and with those shells, he could simply buy potatoes
from farmer Y. Commodity money brought the birth of money in ancient times and
economies started to develop because of that.

(iii) Metallic Money (coins):

As people were using commodity money more often, they identified new
problems. This trading medium had three major common defects – perishability,
indivisibility, and heterogeneity. They couldn’t be kept for a long time, so people
couldn’t repay their loans or save it for other needs in the future. Besides that,
commodities were not the same in every market, and trading with other regions was
very difficult.

King Alyattes of Lydia became the first to mint official currency in 600 B.C.
This currency was represented by coins, made of silver and gold. Coins were stamped
with pictures to avoid counterfeiting. Each coin had a different value which made it
easier for people to estimate the cost of items. As a result, this adopted currency helped
Lydia’s both internal and external trade, classifying it as one of the richest empires in
Asia Minor. If you’ve heard the saying “as rich as Croesus”, it refers back to the last
Lydian King that issued the first gold coin. Soon after that, countries started to mint
their own coins with different values.

16
(iv) Paper money or Representative money:

Paper currency was first developed in Tang dynasty China during the 7th
century, but true paper money only appeared during the Song dynasty, in the 11th
century. Marco Polo was the one that introduced the concept of paper money in Europe,
during the 13th century. Back then, paper money was used to buy goods and it operated
in many ways just like currency nowadays. The main difference was that currency was
issued by banks and private institutions. Now, the government is responsible for issuing
money in almost all countries.

Representative money (paper money) was made and is currently made of

materials with little to no value. The real value was backed by a bank’s promise to
exchange that piece of paper for various goods, such as gold or silver.

(v) Credit Money:

As money became the main standard and societies started to realize that living
a good life is dictated by a piece of paper, life was not safe anymore. Paper money had
no protection from theft and rich people were treated as targets by thieves. In response,
a banking system was created. This model enabled people to save their earnings into a
safe savings account and allocate loans for people in need. However, in its early stage,
the biggest issue was that moneylenders were exploiting poor people. As a result, banks
took the responsibility to provide loans with some conditions.

(vi) Electronic Money or ‘Plastic’ Money:

Electronic money is what we know as credit or debit cards. It is a way to store

currency electronically and one can withdraw money by using an ATM. During the
1920s, individual firms in the US started to issue credit cards for customers. Purchases
were only available internally at company locations. Nowadays, this model is used by
businesses such as Starbucks. Customers receive a loyalty card on which they can add
money and pay with it at any Starbucks location. They receive points with every
purchase.

In 1950, Diner’s Club introduced the first universal credit card, which could be
used within different locations. In 1958, American Express revolutionized the use of
credit cards. It was the first credit card to be accepted internationally. In its early stages,
these cards were made of paper, with the account number and customer’s name typed.

17
 After one year, in 1959, American Express began to issue plastic cards, an industry
first.

In our days, credit cards can be stored on mobile devices. Services like Apple
Pay and Samsung Pay enable customers to pay by simply tapping their phones to a
point-of-sale terminal. It replaces the need to carry a physical card in your wallet.

(vii) Cryptocurrencies:

In 2008, Bitcoin was the first cryptocurrency to appear. Satoshi Nakamoto,

whose true identity is still a mystery, was the one that mined the first block of the
Bitcoin network, piloting the blockchain technology. The most important differentiator
of crypto payments is that transactions are decentralized, without a governing body.
Transactions are stored in individual blocks and are immutable. Cryptocurrencies are
not tangible, and they don’t possess a physical value. Businesses begin to realize that
using crypto payments results in lower transaction fees. Without intermediaries
involved in the process, traditional credit card fees are not an expense anymore. To give
you an understanding of the evolution of crypto, as we speak, there are 5000
cryptocurrencies out there. From exchanging cows and chickens to digital currencies,
humankind never fails to adapt and find innovative alternatives by how money evolved
over time.

3.3 INTRODUCTION OF CRYPTOCURRENCY

Currency is regarded as means of exchange for goods and services and that differs in
the different countries. It is stated as the money that we use and that is required by us to fulfill
our different needs. The advancing technology has given rise to new types of currency and that
is named cryptocurrency. It is a currency that is not available physically but it is a digital
currency. It is new technology and thus an interesting topic for all. Let’s discuss this emerging
technology, origin, advantages, and issues related to this form of currency in the essay below.

We all are well aware of the term currency or money. It is stated as the basic
requirement of the people for getting different goods and services. Money that we use for
different purposes i.e., to buy different things, for investments, doing transactions, etc. is in the
physical form. A cryptocurrency is also a form of currency but it is not available in physical
form. It is a newly developed currency that is an internet currency and can only be used
digitally. In other words, cryptocurrency is a newly invented form of currency that is termed

18
digital or virtual currency. Bitcoin, Ripple, Dogecoin, etc. are some of the examples of
cryptocurrencies.

Cryptocurrency is a set of binary data and that is used as a medium of exchange for
goods and services. The record of every coin in cryptocurrency is being stored in the digital
ledger cryptographically in a secure way so that no changes can be made in the transaction
data. The people get the authority of the token according to the amount they have given for
stake in cryptocurrency. It is stated as the centralized currency after it is issued by a single user.
Later when it is stated as decentralized, its options are available on the digital ledger of every
connected user in the blockchain. Bitcoin is referred to as the first decentralized cryptocurrency
that was invented in the year 2009. There was the invention of different cryptocurrencies after
the invention of Bitcoin.

3.3.1 HISTORY OF CRYPTOCURRENCY

David Chaum an American Cryptographer was the first one to create electronic money
or e-cash in the year 1983. This was brought into use by him in the year 1995 in form of Digi-
cash. The earlier form of electronic payment required the use of software and encrypted keys
for continuing any kind of transaction.

Later, there was the invention of ‘B-money’, a distributed electronic cash system in the
year 1998 by Wei Dei. Bit-gold was further discovered by Nick Szabo. It was also an electronic
currency system in which proof of work function was essential for all the users to
cryptographically publish the same.

Bitcoin that is regarded as the first decentralized cryptocurrency was then developed in
the year 2009 by Satoshi Nakamoto. It required a cryptographic hash function and the proof of
work scheme. Name-coin, Litecoin, and Peercoin were subsequently developed thereafter in
the year 2011. The United Kingdom in the year 2014 ordered its financial department to
conduct a study on cryptocurrency and also state the impacts that it can make on the nation’s
economy.

Recently in the year 2021, the government of China, which was stated as the largest
market for cryptocurrency got crashed as the country declared all the cryptocurrency
transactions illegal. This incident also banned the working of intermediaries and miners in
China.

19
3.3.2 CLASSIFICATION OF CRYPTOCURRENCY

The first developed decentralized cryptocurrency was Bitcoin. It has attained great
popularity and is being used in the different nations of the world. The credit for the invention
of this cryptocurrency goes to Satoshi Nakamoto in the year 2009. Various other
cryptocurrencies have been designed after the emergence of Bitcoin and all are specific in their
functions. There are more than 7000 cryptocurrencies in the world till November 2021. The
other cryptocurrencies except Bitcoin are termed Altcoins. They are Litecoin, P

Peercoin, Name-coin, Ethereum, Cardano, etc. The expected value of all the existing
cryptocurrencies is about 1.5 trillion dollars.

3.2.3 ADVANTAGES OF CRYPTOCURRENCY

• No Need for Third-Party Involvement: There is no any involvement of third

parties for transferring funds between parties because of the development of
cryptocurrency.

• Cost-effective and Efficient technology: The process of transfer of funds incurs no

extra charge and takes place at a faster rate. The miners involved get awarded by
cryptocurrency from the network after the process of the transaction.

• Secure Technology: The data of the transaction is safely stored in the blocks with
full privacy and cannot be edited by anybody. This protects the user from any kind
of fraud and cybercrime.

• Privacy: The private keys can be used by the users to access their own
cryptocurrency with full privacy. Many E-wallets of cryptocurrency are provided
with the private key and thus they can only be assessed by the owner itself.

• No Barriers in Joining the Network: Anybody can easily join a network of

cryptocurrency as there are very no such restrictions for presenting the proof of
identity, income and address.

20
3.3.4 ISSUES LINKED WITH CRYPTOCURRENCY

Every technology is a blessing for mankind as it is benefitting us in different ways but

there are some of the disadvantages also associated with it. The issues or disadvantages linked
with the use of cryptocurrency are stated below:

• High Volatility in The Values of Cryptocurrencies: There is a high fluctuation in

the values of cryptocurrencies as it is totally dependent on the supply and demands.
This greatly affects the cryptocurrency holders.

• Illegal Use: There is high privacy in transactions of the cryptocurrency and thus it
can easily be a medium for carrying out illegal activities like money laundering,
terror-financing, selling drugs, child pornographies, criminal activities, etc.

• Not Monitored by Central Authority: Cryptocurrencies are decentralized that

implies that it is not controlled by any single authority or central authority. It is
managed and monitored by all the users in the network. Thus, it is not considered a
reliable currency as it does not have central control like the Reserve Bank of India
has on the monetary policy. The people also do not trust in investing in
cryptocurrency as it is not controlled by a central authority and thus has no reliability.

• Difficult to Operate by the Uneducated Mass: The people who do not have the
knowledge of the internet or are uneducated cannot access this technology. Thus,
such people could not avail the benefit of digital currency.

• High Energy Consumption: High power consumption is there in the process of

mining the cryptocurrency. High power consumption states that it is not a sustainable
technology as it possesses greater pressure on power production. This can also result
in rising in power prices and give rise to issues like global warming.

• Not Accepted Everywhere: Cryptocurrency is not having acceptance everywhere

in the world. It is only accepted at few places. Moreover, the transactions are not
reversible.

21
3.3.5 HOW CRYPTOCURRENCIES WORK

It’s true that the source codes and technical controls that support and secure
cryptocurrencies are highly complex. However, laypeople are more than capable of
understanding the basic concepts and becoming informed cryptocurrency users. Several
concepts govern cryptocurrencies’ values, security, and integrity.

Cryptography

Cryptocurrencies use cryptographic protocols, or extremely complex code systems that

encrypt sensitive data transfers, to secure their units of exchange. Cryptocurrency developers
build these protocols on advanced mathematics and computer engineering principles that
render them virtually impossible to break, and thus to duplicate or counterfeit the protected
currencies. These protocols also mask the identities of cryptocurrency users, making
transactions and fund flows difficult to attribute to specific individuals or groups.

Blockchain Technology

A cryptocurrency’s blockchain is the master public ledger that records and stores all
prior transactions and activity, validating ownership of all units of the currency at any given
point in time. As the record of a cryptocurrency’s entire transaction history to date, a
blockchain has a finite length — containing a finite number of transactions — that increases
over time.

Identical copies of the blockchain are stored in every node of the cryptocurrency’s
software network — the network of decentralized server farms, run by computer-savvy
individuals or groups of individuals known as miners, that continually record and authenticate
cryptocurrency transactions.

A cryptocurrency transaction technically isn’t finalized until it’s added to the

blockchain, which usually occurs within minutes. Once the transaction is finalized, it’s usually
irreversible. Unlike traditional payment processors, such as PayPal and credit cards, most
cryptocurrencies have no built-in refund or chargeback functions, although some newer
cryptocurrencies have rudimentary refund features.

During the lag time between the transaction’s initiation and finalization, the units aren’t
available for use by either party. Instead, they’re held in a sort of escrow — limbo, for all
intents and purposes. The blockchain thus prevents double-spending, or the manipulation of

22
cryptocurrency code to allow the same currency units to be duplicated and sent to multiple
recipients.

Decentralized Control

Inherent in blockchain technology is the principle of decentralized control.

Cryptocurrencies’ supply and value are controlled by the activities of their users and highly
complex protocols built into their governing codes, not the conscious decisions of central banks
or other regulatory authorities.

In particular, the activities of miners — cryptocurrency users who leverage vast

amounts of computing power to record transactions, receiving newly created cryptocurrency
units and transaction fees paid by other users in return — are critical to currencies’ stability
and smooth function.

Private Keys

Every cryptocurrency holder has a private key that authenticates their identity and
allows them to exchange units. Users can make up their own private keys, which are formatted
as whole numbers up to 78 digits long, or use a random number generator to create one.

Once they have a key, they can obtain and spend cryptocurrency. Without the key, the
holder can’t spend or convert their cryptocurrency — rendering their holdings worthless unless
and until the key is recovered. While this is a critical security feature that reduces theft and
unauthorized use, it’s also draconian. Losing your private key is the digital asset equivalent of
throwing a wad of cash into a trash incinerator.

Although you can create another private key and start accumulating cryptocurrency
again, you can’t recover the holdings protected by your old, lost key. Savvy cryptocurrency
users are therefore maniacally protective of their private keys, typically storing them in
multiple digital locations — although generally not Internet-connected, for security purposes
— and on paper or in other physical form.

Cryptocurrency Wallets

Cryptocurrency users have wallets with unique information that confirms them as the
owners of their units. Whereas private keys confirm the authenticity of a cryptocurrency
transaction, wallets lessen the risk of theft for units that aren’t being used.

23
 Wallets used by cryptocurrency exchanges are somewhat vulnerable to hacking. For
instance, Japan-based Bitcoin exchange Mt. Gox shut down and declared bankruptcy a few
years back after hackers systematically relieved it of more than $450 million in Bitcoin
exchanged over its servers.

Wallets can be stored on the cloud, an internal hard drive, or an external storage device.
Regardless of how a wallet is stored, at least one backup is strongly recommended. Note that
backing up a wallet doesn’t duplicate the actual cryptocurrency units, merely the record of their
existence and current ownership.

Miners

Miners serve as record-keepers for cryptocurrency communities, and indirect arbiters

of the currencies’ value. Using vast amounts of computing power, often manifested in private
server farms owned by mining collectives that comprise dozens of individuals, miners use
highly technical methods to verify the completeness, accuracy, and security of currencies’
blockchains.

The scope of the operation is not unlike the search for new prime numbers, which also
requires tremendous amounts of computing power. Miners’ work periodically creates new
copies of the blockchain, adding recent, previously unverified transactions that aren’t included
in any previous blockchain copy — effectively completing those transactions.

Each addition is known as a block. Blocks consist of all transactions executed since the
last new copy of the blockchain was created. The term “miners” relates to the fact that miners’
work literally creates wealth in the form of brand-new cryptocurrency units. In fact, every
newly created blockchain copy comes with a two-part monetary reward: a fixed number of
newly minted (“mined”) cryptocurrency units, and a variable number of existing units collected
from optional transaction fees — typically less than 1% of the transaction value — paid by
buyers.

Worth noting: Once upon a time, cryptocurrency mining was a potentially lucrative side
business for those with the resources to invest in power- and hardware-intensive mining
operations. Today, it’s impractical for hobbyists without thousands of dollars to invest in
professional-grade mining equipment. If your aim is simply to supplement your regular
income, plenty of freelance gigs offer better returns.

24
 Although transaction fees don’t accrue to sellers, miners are permitted to prioritize fee-
loaded transactions ahead of fee-free transactions when creating new blocks, even if the fee-
free transactions came first in time. This gives sellers an incentive to charge transaction fees,
since they get paid faster by doing so, and so it’s fairly common for cryptocurrency transactions
to come with fees. Although it’s theoretically possible for a new blockchain copy’s previously
unverified transactions to be entirely fee-free, this almost never happens in practice.

Through instructions in their source codes, cryptocurrencies automatically adjust to the

amount of mining power working to create new blockchain copies — copies become more
difficult to create as mining power increases and easier to create as mining power decreases.
The goal is to keep the average interval between new blockchain creations steady at a
predetermined level. Bitcoin’s is 10 minutes, for instance.

Finite Supply

Although mining periodically produces new cryptocurrency units, most

cryptocurrencies are designed to have a finite supply — a key guarantor of value. Generally,
this means miners receive fewer new units per new block as time goes on. Eventually, miners
will only receive transaction fees for their work, although this has yet to happen in practice and
may not for some time.

If current trends continue, observers predict that the last Bitcoin unit will be mined
sometime in the mid-22nd century, for instance — not exactly around the corner.
Cryptocurrencies’ finite supply makes them inherently deflationary, more akin to gold and
other precious metals — of which there are finite supplies — than fiat currencies that central
banks can, in theory, produce unlimited supplies of.

Cryptocurrency Exchanges

Many lesser-used cryptocurrencies can only be exchanged through private, peer-to-peer

transfers, meaning they’re not very liquid and are hard to value relative to other currencies —
both crypto- and fiat. More popular cryptocurrencies, such as Bitcoin and Ripple, trade on
special secondary exchanges similar to forex exchanges for fiat currencies. (The now-defunct
Mt. Gox is one example of an exchange.)

These platforms allow holders to exchange their cryptocurrency holdings for major fiat
currencies like the U.S. dollar and euro, and for other cryptocurrencies, including less-popular

25
currencies. In return for their services, they take a small cut of each transaction’s value —
usually less than 1%.

Importantly, cryptocurrencies can be exchanged for fiat currencies in special online

markets, meaning each has a variable exchange rate with major world currencies, such as the
U.S. dollar, British pound, European euro, and Japanese yen. Cryptocurrency exchanges play
a valuable role in creating liquid markets for popular cryptocurrencies and setting their value
relative to traditional currencies. You can even trade cryptocurrency derivatives on certain
crypto exchanges or track broad-based cryptocurrency portfolios in crypto indexes.

However, exchange pricing can still be extremely volatile. For example, Bitcoin’s U.S.
dollar exchange rate fell by more than 50% in the wake of Mt. Gox’s collapse, then increased
roughly tenfold during 2017 as cryptocurrency demand exploded. And cryptocurrency
exchanges are somewhat vulnerable to hacking, representing the most common venue for
digital currency theft by hackers and cybercriminals like those responsible for taking down Mt.
Gox.

Who can own Cryptocurrency?

Anyone whether an individual or a corporate entity can purchase cryptocurrency. There

is no restriction to who can own cryptocurrency.

How to earn cryptocurrency

Cryptocurrency is based on the term cryptography which means solving codes or to

generate a key for any encrypted program. The currency is hidden behind the encryption which
can only be seen through a key.

The process to get to this key is called mining. Mining is not easy as it sounds. It really
is a hard way to earn because a person will have to use computer systems, a stable high internet
connection and hard labour combined with a bit of luck to solve the encryption.

Another way to earn cryptocurrency is to just pay for it. A person can pay for it to those
who have cryptocurrencies and are willing to give it for real money. Lastly a person can accept
the payment of cryptocurrency for any kind of services provided by him.

Risks assimilated with cryptocurrency

Cryptocurrency is strictly determined by the value that market participants place on

them through their transactions, which means that loss of confidence may bring about a

26
collapse of trading activities and an abrupt drop in value. Since, cryptocurrencies are not
backed by any bank or organization therefore if it goes down it all goes down.

With the changes going around, criminals have also accustomed them with modern
ways. Frequency of cyber-crimes are increasing day by day and with the increase in popularity
of cryptocurrency it is rapidly becoming a hotspot for them. They mostly target the service
providers, investors, storage houses because the amount will be bigger with big players and
service providers. Also, its very difficult to catch the culprit and once they get their hands on
the keys to the wallet. They can use the currency just like its owner. If the keys to the account
are stolen, lost or deleted, then there is no way to retrieve the cryptocurrency back.

High risk high gain proposition

Cryptocurrency emerged in the year 2009, if a person would have invested even 1000
rupees in them at that point of time. He would have been a millionaire by now. But now the
value of cryptocurrency is already very high and from here either it can go to new limits or it
can crash. Investors cannot rely on any authority because there is no authority behind the
transactions of cryptocurrency or to regulate it. Price of cryptocurrency is a highly fluctuating
one and it is near impossible to predict the behavior of the market.

Risk of illicit activities

Cryptocurrency works on cryptography which ensures security and anonymity to the

transaction. But this feature is very dangerous when it comes to terror funding, smuggling,
scams and other money laundering acts. Because it is very difficult to find the source and other
necessary details due to the encryption.

3.3.6 CRYPTOCURRENCY VOCABULARY

• Address

A Bitcoin address is similar to a physical address or an email. It is the only information you
need to provide for someone to pay you with Bitcoin. An important difference, however, is
that each address should only be used for a single transaction.

• Bit

Bit is a common unit used to designate a sub-unit of a bitcoin - 1,000,000 bits is equal to 1
bitcoin (BTC). This unit is usually more convenient for pricing tips, goods and services.

27
• Bitcoin

Bitcoin - with capitalization, is used when describing the concept of Bitcoin, or the entire
network itself. e.g., "I was learning about the Bitcoin protocol today." bitcoin - without
capitalization, is used to describe bitcoins as a unit of account. e.g., "I sent ten bitcoins
today."; it is also often abbreviated BTC or XBT.

• Block Chain

The block chain is a public record of Bitcoin transactions in chronological order. The block
chain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin
transactions and to prevent double spending.

• Block

A block is a record in the block chain that contains and confirms many waiting transactions.
Roughly every 10 minutes, on average, a new block including transactions is appended to
the block chain through mining.

• BTC

BTC is a common unit used to designate one bitcoin.

• Confirmation

Confirmation means that a transaction has been processed by the network and is highly
unlikely to be reversed. Transactions receive a confirmation when they are included in a
block and for each subsequent block. Even a single confirmation can be considered secure
for low value transactions, although for larger amounts like $1000 USD, it makes sense to
wait for 6 confirmations or more. Each confirmation exponentially decreases the risk of a
reversed transaction.

• Cryptography

Cryptography is the branch of mathematics that lets us create mathematical proofs that
provide high levels of security. Online commerce and banking already uses cryptography.
In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend
funds from another user's wallet or to corrupt the block chain. It can also be used to encrypt
a wallet, so that it cannot be used without a password.

28
• Double Spend

If a malicious user tries to spend their bitcoins to two different recipients at the same time,
this is double spending. Bitcoin mining and the block chain are there to create a consensus
on the network about which of the two transactions will confirm and be considered valid.

• Hash Rate

The hash rate is the measuring unit of the processing power of the Bitcoin network. The
Bitcoin network must make intensive mathematical operations for security purposes. When
the network reached a hash rate of 10 Th/s, it meant it could make 10 trillion calculations
per second.

• Mining

Bitcoin mining is the process of making computer hardware do mathematical calculations

for the Bitcoin network to confirm transactions and increase security. As a reward for their
services, Bitcoin miners can collect transaction fees for the transactions they confirm, along
with newly created bitcoins. Mining is a specialized and competitive market where the
rewards are divided up according to how much calculation is done. Not all Bitcoin users
do Bitcoin mining, and it is not an easy way to make money.

• P2P

Peer-to-peer refers to systems that work like an organized collective by allowing each
individual to interact directly with the others. In the case of Bitcoin, the network is built in
such a way that each user is broadcasting the transactions of other users. And, crucially, no
bank is required as a third party.

• Private Key

A private key is a secret piece of data that proves your right to spend bitcoins from a specific
wallet through a cryptographic signature. Your private key(s) are stored in your computer
if you use a software wallet; they are stored on some remote servers if you use a web wallet.
Private keys must never be revealed as they allow you to spend bitcoins for their respective
Bitcoin wallet.

29
• Signature

A cryptographic signature is a mathematical mechanism that allows someone to prove

ownership. In the case of Bitcoin, a Bitcoin wallet and its private key(s) are linked by some
mathematical magic. When your Bitcoin software signs a transaction with the appropriate
private key, the whole network can see that the signature matches the bitcoins being spent.
However, there is no way for the world to guess your private key to steal your hard-earned
bitcoins.

• Wallet

A Bitcoin wallet is loosely the equivalent of a physical wallet on the Bitcoin network. The
wallet actually contains your private key(s) which allow you to spend the bitcoins allocated
to it in the block chain. Each Bitcoin wallet can show you the total balance of all bitcoins
it controls and lets you pay a specific amount to a specific person, just like a real wallet.
This is different to credit cards where you are charged by the merchant.

3.3.7 EXAMPLE OF VARIOUS CRYPTOCURRENCY

Cryptocurrency usage has exploded since Bitcoin’s release. Although exact active
currency numbers fluctuate and individual currencies’ values are highly volatile, the overall
market value of all active cryptocurrencies is generally trending upward. At any given time,
hundreds of cryptocurrencies trade actively.

1. Bitcoin

• Bitcoin is the world’s most widely used cryptocurrency and is generally credited with
bringing the movement into the mainstream.

• Its market cap and individual unit value consistently dwarf (by a factor of 10 or more)
that of the next most popular cryptocurrency. Bitcoin has a programmed supply limit
of 21 million Bitcoin.

• Bitcoin is increasingly viewed as a legitimate means of exchange. Many well-known

companies accept Bitcoin payments, although most partner with an exchange to convert
Bitcoin into U.S. dollars before receiving their funds.

30
2. Ethereum

• Launched in 2015, Ethereum (ETH) is the second most popular cryptocurrency and, on
most days, the second most valuable after Bitcoin.

• Ethereum makes some noteworthy improvements to Bitcoin’s basic architecture. In

particular, it utilizes “smart contracts” that enforce the performance of a given
transaction, compel parties not to renege on their agreements, and contain mechanisms
for refunds should one party violate the agreement.

• Although “smart contracts” represent an important move toward addressing the lack of
chargebacks and refunds in cryptocurrencies, it remains to be seen whether they’re
enough to solve the problem completely. Still, they’re at least partly responsible for
Ethereum’s success.

3. Litecoin

• Released in 2011, Litecoin (LTC) uses the same basic structure as Bitcoin. Key
differences include a higher programmed supply limit (84 million units) and a shorter
target blockchain creation time (2.5 minutes).

• The encryption algorithm is slightly different as well. Litecoin is often the second- or
third-most popular cryptocurrency by market capitalization.

4. Ripple

• Released in 2012, Ripple (XRP) is noted for a “consensus ledger” system that
dramatically speeds up transaction confirmation and blockchain creation times —
there’s no formal target time, but the average is every few seconds.

• Ripple is also more easily converted than other cryptocurrencies with an in-house
currency exchange that can convert Ripple units into U.S. dollars, yen, euros, and other
common currencies.

• However, critics have noted that Ripple’s network and code are more susceptible to
manipulation by sophisticated hackers and may not offer the same anonymity
protections as Bitcoin-derived cryptocurrencies.

31
5. Dogecoin

• Dogecoin (DOGE), denoted by its immediately recognizable Shiba Inu mascot, is a

variation on Litecoin.

• It has a shorter blockchain creation time (one minute) and a vastly greater number of
coins in circulation — the creators’ target of 100 billion units mined by July 2015 was
met, and there’s a supply limit of 5.2 billion units mined every year thereafter, with no
known supply limit.

• Dogecoin is thus notable as an experiment in “inflationary cryptocurrency,” and experts

are watching it closely to see how its long-term value trajectory differs from that of
other cryptocurrencies.

6. Coinye

• Coinye, a semi-defunct cryptocurrency, is worth mentioning solely for its bizarre

backstory.

• Coinye was developed under the original moniker “Coinye West” in 2013, and
identified by an unmistakable likeness of hip-hop superstar Kanye West. Shortly before
Coinye’s release, in early 2014, West’s legal team caught wind of the currency’s
existence and sent its creators a cease-and-desist letter.

• To avoid legal action, the creators dropped “West” from the name, changed the logo to
a “half man, half fish hybrid” that resembles West — a biting reference to a “South
Park” episode that pokes fun at West’s massive ego — and released Coinye as planned.

3.4 CRYPTOCURRENCY IN INDIA

The invention of Bitcoin in cryptocurrencies gave this currency new heights and
popularity. The people became more familiar with this technology during the pandemic due to
the outbreak of Covid-19. It had been a burning topic in different countries of the world
including India. The investors and businessmen of India and different nations started taking
interest in using this currency in trade and commerce after the advent of Bitcoins in the market.

Later in the year 2018-19, it was announced by the Finance Minister of India that the
country does not consider the private cryptocurrency as a legal tender in India. It was also

32
announced by the Reserve Bank of India that none of the banks will deal in cryptocurrencies.
Thus, a blanket ban was imposed by the nation on the use of cryptocurrency.

The government of India at present has decided to introduce the bill called
Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. It will be implemented
to ban all the private cryptocurrencies and create a digital currency in the nation. The fund
allocated by the Indian government for initiating the blockchains is very less therefore it is very
difficult for investors and entrepreneurs to attain economic benefit from cryptocurrencies.

Impact of COVID-19 on cryptocurrency

COVID-19 a disease from which millions of people died and every person was affected.
COVID-19 is a highly communicable disease, therefore almost every country in the world-
imposed lockdowns due to which people were forced to stay at home and work from home.
During this pandemic, financial markets become unstable as anyone could have predicted. But,
to the surprise cryptocurrency market remained stable, especially Bitcoin. It can be termed as
proof that bitcoin has become a full-fledged element of the financial market. So, COVID-19
pandemic has verified cryptocurrencies positively.

Stand of Reserve Bank of India

The Reserve Bank of India (RBI) has always advised about the potential risks involved
with the use of cryptocurrency. But in 2018 Reserve Bank took a firm step by banning its
regulated entities from supporting transactions related to cryptocurrency and providing any
services dealing with the same. This ban was seen as bad by the cryptocurrency holders and
investors and soon after petitions were filed in the honorable Supreme Court of India.

Reasons for ban by the Reserve Bank of India

The Reserve Bank is responsible for financial stability and credit system in India. It
also manages foreign exchanges under the foreign exchange management act, 1999. There was
a significant number of scams related to cryptocurrencies in the market. These scams are raised
further by the demonetization in India. Ponzi schemes are also one of the reasons for this
banking ban. Ponzi schemes are basically scams in which interest is paid to the earlier investors
by the money invested by the later investors.

33
Intervention of The Supreme Court

Aggrieved by the restriction imposed by Reserve Bank, the Internet and Mobile
Association of India, filed a petition questioning the legality of the circular issued by the RBI.
Soon after, another petition was filed by the corporates interested in dealing with
cryptocurrency along with few individual traders. The case was filed in the year 2018 under
the name of Internet and Mobile Association of India v. Reserve Bank of India. In this case, it
was argued that the circular of the Reserve Bank banning its subsidiaries was against the
fundamental right of to practice any profession, or to carry on any occupation, trade or business
provided by Article 19(1)(g) of the Indian Constitution.

Their main argument being that Reserve Bank has exceeded its power of regulatory
framework of the RBI Act or Banking Regulation Act, 1949, as it doesn’t lie under the ambit
of credit system or payment system under the Payment and Settlement Act,2007. The court
observed that the RBI fails to administer a single event where exchange of cryptocurrency has
impacted entities like nationalized banks/ scheduled commercial banks/ cooperative
banks/NBFCs directly or indirectly regulated by RBI. The court on march 4 set aside that
circular as the court found it disproportionate. Also, the court found that the RBI did not
consider the availability of alternatives before issuing the circular.

Governments scheme regarding cryptocurrency

Stand of Indian government had been pretty clear that they do not want cryptocurrency
as a legal tender. Moreover, they want to discourage their citizens from investing and dealing
in the same. There was a banking ban on cryptocurrencies from July 2018 to March 2020. On
March 4, the Supreme Court lifted the ban and through that instance, the government should
have understood that they cannot put an absolute restriction on cryptocurrencies.

A committee was formed to study the use of cryptocurrency and precautions, measures
or regulations to be taken. The committee sent its report on 28 February, 2019 recommending
prohibition of all private cryptocurrencies, except any virtual currencies issued by the state.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 (ODC Bill)
has been proposed with the target of making a facilitative framework for creation of the official
digital currency to be issued by the Federal Reserve Bank of India (RBI) and prohibit all private
cryptocurrencies in India. However, it'll support and use underlying cryptocurrency

34
technologies. If the proposed creation of digital currency happens, the RBI will join other
central banks including that of China, where it's electronic yuan.

Present situation of Cryptocurrency in India

It is interesting to note that currently there is no law which bans cryptocurrency in India.
It is perfectly legal to own and trade in cryptocurrency. There had been a ban on banking
entities to not support crypto transactions but that circular of RBI was set aside on March 4 by
the Supreme Court and there is no regulation or legal framework guiding cryptocurrency up to
this day. It should also be noted that it is not a legal tender. Legal tender is mentioned in section
26 of Reserve Bank of India Act, 1934 as: guaranteed by the central government of India. So,
to declare cryptocurrency as legal tender, the government will have to notify it in the official
Gazette notification but until then it cannot be legally enforced.

India needs a regulatory framework just like other countries need. It is no secret that a
lot of Indian investors are there who are investing in cryptocurrency and waiting for their
opportunity, but the government doesn't want them to continue. Government needs to
acknowledge that this could be the tool Indian economy was waiting for. Prima facie the
government is only looking at the negative side of cryptocurrency that it could be used for
illicit activities like money laundering and terror funding but it can control these drawbacks by
bringing a framework to control the use of cryptocurrency.

Recent developments in China

China has become the first major economy to launch blockchain powered
cryptocurrency as it has started to issue digital Yuan. People in China were already accustomed
with the app based digital transactions therefore, the transactions of digital Yuan which can be
done through an app shouldn't be a hiccup. This knowledge on how people spend money will
only grow with the implementation of the digital Yuan, even though the country’s Central Bank
has said it will limit traceability and create what it calls controllable anonymity.

Bloomberg identifies India and three other countries South Africa, Pakistan and
Thailand, with concrete plans to launch their own official cryptocurrencies soon.

35
Increasing Trend of Cryptocurrency in the World

The advent of cryptocurrency is a great innovation in technology. The invention of the

blockchain is the basis of the working of cryptocurrency. It is because of this technology that
cryptocurrency is made decentralized. Bitcoin was the first decentralized cryptocurrency
invented in the year 2009. Thereafter many such cryptocurrencies have evolved. In beginning,
this innovation did not get any importance but is gaining more attention at present.

Although, there are many countries that have not encouraged its use but many of them
have started taking interest in this digital currency. Recently, countries like Japan and Australia
have made it a legal tender. Moreover, many investors and businessmen are taking interest in
accelerating their businesses by using cryptocurrencies.

Future Scope of Cryptocurrency

Government's stand is pretty clear that they do not want decentralized currency. RBI is
also looking to prohibit the use of cryptocurrency without looking at the alternatives to regulate
and control the cryptocurrency and its transactions. But emphasis should also be given on the
interview of Finance minister Mrs. Nirmala Sitharaman in which she said from our side, we
are very clear that we are not shutting off all options, to India Today News Director Rahul
Kanwal

The future of cryptocurrency totally depends upon the regulatory measures and
framework given by different countries in the world. At present, there are certain challenges in
operating this currency in different countries of the world. The most important issue is security
and regulation and overcoming the challenges might help this form of currency to flourish in
the future. Many people fear investing in such currencies that are not having any central
authority for control. The people investing money in this are mainly with a motive of earning
money. They do not prefer this technology for doing transactions and other works.

Blockchain technology has blocks of record linked together. Such technology can be
devised in the banking and commercial sectors to know the details of every step of the
transactions. This will help in reducing any kind of illegal transactions that are happening by
the use of digital currency. Recently the finance minister of India has also stated that there will
not be a complete ban on cryptocurrencies in the nation. Several studies and experiments will
be conducted by the assigned people in the government to move forward in embracing this
technology.

36
3.5 CONCLUSION

Cryptocurrency is well designed by using every modern technique like the internet and
developed software. The invention of cryptocurrency has been greatly helpful in fostering
digitalization. The control and management of cryptocurrency by the blockchains are encrypted
and this is a boon for investors and businessmen. The countries have to make regulations to get
more clarity about the use of cryptocurrencies and blockchains. The establishment of specific
rules and guidelines by the government will aid in reducing the limitations of this wonderful
technology. This will enable digital currency to become more eminent and successful in the
world in the coming future. Change is the only thing constant in human life. From barter system
to rupees and from physical transactions to online money transactions there has been an
upgrade in the form of money and in the form of interface of their transactions, on which the
parties carry on business. And now it is time for cryptocurrency as it is seen as a safe transaction
method and a promising investment. In upcoming years, the government may try to ban
unauthorized cryptocurrencies after launching its own currency, but in the long term it will
have to make way for the upcoming surge of crypto investors.

37
 CHAPTER IV

ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

In this chapter, an attempt has been made to examine and analyze data relating to
socio-economic profile of sample respondents, respondent’s awareness about
Cryptocurrency in Coimbatore and people’s willingness to use cryptocurrency as a form of
investing.

Tools that were used are,

• Percentage Analysis
• Weighted Average Analysis
• Chi-Square Analysis

4.2 RESPONDENTS SOCIO-ECONOMIC PROFILE

It combines demographic information, such as area, age, gender, marital status,

educational qualification, occupational status, Monthly income, are given in the following
paragraphs. A socio-economic and industry profile is a snapshot of a locality.

38
4.2.1 THE FOLLOWING TABLE SHOWING AREA OF THE RESPONDENTS
The following table shows the classification of based on area of residence.
TABLE NO 4.2.1

AREA OF THE RESPONDENTS

Frequency Percent

Urban 47 31.3

Semi-Urban 81 54.0

Urban 47 31.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:

According to the above data, 47 (31.3%) of the 150 respondents live in urban areas, 81
(54.0%) live in semi-urban areas, and the remaining 47 (31.3%) live in rural areas.

INFERENCE:

As a result, the majority of respondents (81, or 54.0 percent) are Semi-urban.

CHART NO 4.2.1

AREA OF THE RESPONDENTS

81

47 47

Urban Semi-Urban Urban

39
4.2.2 THE FOLLOWING TABLE SHOWING AGE OF THE RESPONDENTS

The following table shows the classification of based on age of respondents.

TABLE NO 4.2.2
AGE OF THE RESPONDENTS
Frequency Percent

18 - 25 Years 78 52.0

26 - 30 Years 42 28.0

31 - 35 Years 14 9.3

36 - 40 Years 14 9.3

Above 40 2 1.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:

The above table reveals that, out of 150 respondents, 78 (52.0%) belong to the age
group of 18 - 25 years, 42 (28.0%) of the respondents belong to the age group of 26 - 30
Years, 14 (9.3%) of the respondents belong to the age group of 31 -35 years and remaining
2 (1.3%) belongs to age group of above 40.
INFERENCE:
Thus, it is observed that majority of the respondents 97 (64.7%) belong to the age group
of 18 - 25 years.
CHART NO 4.2.2

78 AGE OF RESPONDENTS

42

14 14
2

18 - 25 Years 26 - 30 Years 31 - 35 Years 36 - 40 Years Above 40

40
4.2.3 THE FOLLOWING TABLE SHOWING GENDER OF THE RESPONDENTS

The following table shows the classification of respondents based on gender.

TABLE NO 4.2.3

GENDER OF THE RESPONDENTS

Frequency Percent

Female 71 47.3

Male 79 52.7

Total 150 100.0

Source: Primary Data

INTERPRETATION:

The above table reveals that, out of 150 respondents, 71 (47.3%) are under Female category,
and the remaining 79 (52.7%) are under Male category.

INFERENCE:

Thus, it observed that majority of the respondents 79(52.7%) are male.

CHART NO 4.2.3

GENDER OF THE RESPONDENTS

79

71

Female Male

41
4.2.4 THE FOLLOWING TABLE SHOWING EDUCATIONAL QUALIFICATION
OF RESPONDENTS
The following table shows the classifications of respondents based on their educational
qualification.
TABLE NO 4.2.4
EDUCATION QUALIFICATION OF THE RESPONDENTS
Frequency Percent
Below HSC 6 4.0
Diploma 30 20.0
Graduate 65 43.3
Post Graduate 36 24.0
Others 13 8.7
Total 150 100.0
Source: Primary Data
INTERPRETATION:
The above table reveals that, out of 150 respondents, 6 (4.0%) are below HSC, 30
(20.0%) Diploma, 65 (43.3%) are Graduate, 36 (24.0%) are Post Graduate and
13(8.7%) are others.

INFERENCE:

Thus, it is observed that majority of the respondents 65 (43.3%) are Graduate.

CHART NO 4.2.4
EDUCATION QUALIFICATION OF THE
RESPONDENTS
65

36
30

13
6

Below HSC Diploma Graduate Post Graduate Others

42
4.2.5 THE FOLLOWING TABLE SHOWING OCCUPATION OF RESPONDENTS

The following table shows the classification of respondents based on their educational
qualification.
TABLE NO 4.2.5

OCCUPATION OF THE RESPONDENTS

Frequency Percent

Self-Employment 33 22.0

Government Employee 31 20.7

Private Employee 72 48.0

Others 14 9.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:

The above table reveals that, out of 150 respondents, 33 (22.0%) are Self Employed
Respondents, 31 (20.7%) are Government Employees, 72 (48.0%) are Private Employees
and 14 (9.3 %) are others.

INTERPRETATION:

Thus, it is observed that majority of the respondents 72 (48.0%) are Private Employees.

CHART NO 4.2.5

OCCUPATION OF THE RESPONDENTS

72

33 31

14

Self-Employment Government Employee Private Employee Others

43
4.2.6 THE FOLLOWING TABLE SHOWING MARITAL STATUS OF
RESPONDENTS

The following table shows the classification of respondents Marital Status.

TABLE NO 4.2.6

MARITAL STATUS OF THE RESPONDENTS

Frequency Percent

Married 63 42.0

Unmarried 87 58.0

Total 150 100.0

Source: Primary Data

INTERPRETATION:

The above table reveals that, out of 150 respondents, 63 (42.0%) are under Married category,
and the remaining 83 (58.0%) are under Unmarried category.

INFERENCE:

Thus, it is observed that majority of the respondents 83(58.0%) are Unmarried.

CHART NO 4.2.6

MARITAL STATUS OF THE RESPONDENTS

87

63

Married Unmarried

44
4.2.7 THE FOLLOWING TABLE SHOWING MARITAL MONTHLY INCOME OF
RESPONDENTS
The following table shows the classification of respondents Monthly Income.
TABLE NO 4.2.7
MONTHLY INCOME OF THE RESPONDENTS
Frequency Percent

Below Rs. 25,000 63 42.0

Rs. 26,000 to Rs. 50,000 52 34.7

Rs. 51,000 to Rs. 75,000 24 16.0

Above Rs. 75,000 11 7.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:

From the above table, it reveals that, out of total 150 respondents 63 (42.0%)
respondents’ monthly income is below Rs.25,000 and 52 (34.7%) respondents’ monthly
income is between Rs. 26,000 to Rs. 50,000 and 24 (16.0%) respondents’ monthly income
Rs. 51,000 to Rs. 75,000 and 11 (7.3 %) respondents’ monthly income are above Rs.75,000.
INFERENCE:
Hence, it is observed the most of respondent’s 63 (742.0%) income per month is
below Rs.25,000.
CHART NO 4.2.7

MO NTH LY INCO ME O F TH E RESP O NDENTS

63
52

24

11

Below Rs. 25,000 Rs. 26,000 to Rs. 50,000 Rs. 51,000 to Rs. 75,000 Above Rs. 75,000

45
4.2.7 THE FOLLOWING TABLE SHOWING RESPONDENTS FAMILY TYPE

The following table shows the classification of respondents Family Type.

TABLE NO 4.2.8

FAMILY TYPE OF THE RESPONDENTS

Frequency Percent

Joint Family 40 26.7

Nuclear Family 110 73.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:

It is found from above table that out of the 150 respondents, 40 (26.7 %) respondents are
joint family and 110 (73.3%) respondents are nuclear family.

INFERENCE:

Hence, it is observed the most of respondent’s 110(73.3%) Nuclear Family.

CHART NO 4.2.8

FAMILY TYPE OF THE RESPONDENTS

110

40

Joint Family Nuclear Family

46
 4.3 RESPONDENTS AWARENESS OF CRYPTOCURRENCY:

4.3.1 THE FOLLOWING TABLE SHOWING RESPONDENTS TECHNOLOGY

BACKGROUND

The following table shows the respondents Technology Background.

TABLE NO 4.3.1

TECHNOLOGY BACKGROUND OF RESPONDENTS

Frequency Percent

Yes 150 100.0

No 0 0

Total 150 100.0

Source: Primary Data

INTERPRETATION:

It is found from above table is, 150 respondents have technology background.

CHART NO 4.3.1

TECHNOLOGY BACKGROUND OF RESPONDENTS

150

Yes No

47
4.3.2 THE FOLLOWING TABLE SHOWING RESPONDENTS TECHNOLOGY
BACKGROUND CLASSIFICATION

The following table shows the respondents Technology Background Classification.

TABLE NO 4.3.2
RESPONDENTS TECHNOLOGY BACKGROUND CLASSIFICATION
Frequency Percent

Not at all Aware 0 0

Slightly Aware 47 31.3

Moderate Aware 63 42.0

Very Aware 28 18.7

Extremely Aware 12 8.0

Total 150 100.0

Source: Primary Data

INTERPRETATION:
Above table shows that, 0 (0.0%) respondents are not at all aware, 47 (31.3%) are slightly
aware, 63 (42.0%) are Moderate Aware, 28 (18.7%) are Very Aware and remaining 12 (8.0%)
are Extremely Aware in Technology.
INFERENCE:
Hence, it is observed most of the people, 63 (42.0%) are Moderate Aware in
Technology.
CHART NO 4.3.2

RESPONDENTS TECHNOLOGY BACKGROUND

CLASSIFICATION
63

47

28

12
0

Not at all Aware Slightly Aware Moderate Aware Very Aware Extremely Aware

48
4.3.3 THE FOLLOWING TABLE SHOWING RESPONDENT FAMILIAR WITH A
WORD CRYPTOCURRENCY OR BITCOIN

The following table shows the respondents Familiar with a word Cryptocurrency or
Bitcoin.

TABLE NO 4.3.3

RESPONDENTS FAMILIAR WITH WORD “CRYPTOCURRENCY” OR

“BITCOIN”

Frequency Percent

Yes 150 100.0

No 0 0

Total 150 100.0

Source: Primary Data

INTERPRETATION:

It is found from above table is, 150 respondents are familiar with word “Cryptocurrency”.

CHART NO 4.3.3

RESPONDENTS
150 FAMILIAR WITH WORD “CRYPTOCURRENCY”

Yes No

49
4.3.4 THE FOLLOWING TABLE SHOWING RESPONDENT AWARENESS OF
CONCEPT OF CRYPTOCURRENCY

The following table shows the respondents awareness of concept of cryptocurrency.

TABLE NO 4.3.4

RESPONDENTS AWARENESS OF CONCEPT OF CRYPTOCURRENCY

Frequency Percentage

No 21 14.0

Yes 129 86.0

Total 150 100.0

Source: Primary Data

INTERPRETATION:
It is found from above table that out of the 150 respondents, 21 (14.0 %) respondents said No
and remaining 129 (86.0 %) respondents said Yes for awareness of concept of cryptocurrency.
INFERENCE:
Hence, it is observed the most of respondent’s are 29 (86.0 %) aware concepts of
cryptocurrency.
CHART NO 4.3.4

RESPONDENTS AWARENESS OF CONCEPT OF

CRYPTOCURRENCY

129

21

No Yes

50
4.3.5 THE FOLLOWING TABLE SHOWING RESPONDENT AWARENESS OF
CONCEPT OF CRYPTOCURRENCY CLASSIFICATION

The following table shows the respondents awareness of concept of cryptocurrency.

TABLE NO 4.3.5
RESPONDENTS AWARENESS OF CONCEPT OF CRYPTOCURRENCY
CLASSIFICATION
Frequency Percent

Not at all Aware 10 6.7

Slightly Aware 49 32.7

Moderate Aware 55 36.7

Very Aware 25 16.7

Extremely Aware 11 7.3

Total 150 100.0

Source: Primary Data
INTERPRETATION:
Above table shows that, 10 (6.7%) respondents are not at all aware, 49 (32.7%) are slightly
aware, 55 (36.7%) are Moderate Aware, 25 (16.7%) are Very Aware and remaining 11 (7.3%)
are Extremely Aware in Technology.
INFERENCE:
Hence, it is observed most of the people, 55 (36.7 %) are Moderate Aware in Cryptocurrency
Concept.
CHART NO 4.3.5

RESPONDENTS AWARENESS OF CONCEPT OF CRYPTOCURRENCY

Not at all Aware Slightly Aware Moderate Aware Very Aware Extremely Aware

51
4.3.5 THE FOLLOWING TABLE SHOWING RESPONDENT GETS KNOWLEDGE
ABOUT CRYPTOCURRENCY (SOURCES)
The following table shows the respondents gets knowledge about cryptocurrency
(Sources).
TABLE NO 4.3.5
SOURCES OF GETTING KNOWLEDGE ABOUT CRYPTOCURRENCY

Frequency Percent
Mass Media 29 19.3
News Paper 30 20.0
Social Media 39 26.0
Journals 9 6.0
Magazine 16 10.7
Friends 27 18.0
Total 150 100.0
Source: Primary Data
INTERPRETATION:
Above table shows that, 29 (19.3%) are aware through Magazine, 30 (20.0%) are aware
through News Paper, 39 (26.0%) are aware through social media, 9 (6.0%) are aware through
Journals, 16 (10.7%) are aware through Magazine and 27 (18.0%) are aware through Friends.
INFERENCE:
Hence, it is observed most of the people, 39 (26.0%) are aware through social media
CHART 4.3.5

SOURCES OF GETTING KNOWLEDGE ABOUT

CRYPTOCURRENCY

39

29 30
27

16

Mass Media News Paper Social Media Journals Magazine Friends

52
4.3.6 THE FOLLOWING TABLE SHOWING RESPONDENT FAMILIAR WITH
TYPES OF CRYPTOCURRENCIES
The following table shows the respondents familiar with various types of Cryptocurrencies.
TABLE NO 4.3.6
RESPONDENTS FAMILIAR WITH VARIOUS CRYPTOCURRENCY

Frequency Percent

Bitcoin 77 51.3

Ripple 25 16.7

Ethereum 28 18.7

Litecoin 11 7.3

Dogecoin 9 6.0

Total 150 100.0

Source: Primary Data
INTERPRETATION:
Above the table shows that, 77 (51.3%) respondents know about bitcoin, 25 (16.7%)
respondents know about Ripple, 28 (18.7%) respondents know about Ethereum, 11 (7.3%)
respondents know about Litecoin and remaining 9 (6.0%) respondent know about Dogecoin.
INFERENCE:
Therefore, Most of the People know about Bitcoin 77(51.3%).

CHART 4.3.6

RESPONDENTS FAMILIAR WITH CRYPTOCURRENCY

77

25 28

11 9

Bitcoin Ripple Ethereum Litecoin Dogecoin

53
 4.4 RESPONDENTS WILLINGNESS TO INVEST IN CRYPTOCURRENCY
4.4.1 THE FOLLOWING TABLE SHOWING RESPONDENTS INTEREST TO
INVEST IN CRYPTOCURRENCY

The following table shows the respondents interest to invest in cryptocurrency

TABLE NO 4.4.1
RESPONDENTS INTEREST TO INVEST IN CRYPTOCURRENCY

Frequency Percent

Yes 74 49.3

No 29 19.3

Maybe 47 31.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:
Above the table shows that, 74 (49.3%) of respondents are interested to interest to invest in
cryptocurrency, 29 (19.3) respondents are not interested to invest in cryptocurrency and 47
(31.3%) said maybe to invest in cryptocurrency.
INFERENCE:
Therefore, Most of the People 74 (49.3%) interested to invest in Cryptocurrency.
CHART 4.4.1

RESPONDENTS INTEREST TO INVEST IN

CRYPTOCURRENCY
74

47

29

Yes No Maybe

54
4.4.2 THE FOLLOWING TABLE SHOWING RESPONDENTS MAJOR CONCERN
WHILE INVESTING IN CRYPTOCURRENCY
The following table shows the respondents interest to invest in cryptocurrency
TABLE NO 4.4.2
RESPONDENTS MAJOR CONCERN WHILE INVESTING IN
CRYPTOCURRENCY

Frequency Percent
Difficulty in Buying and Selling 34 22.7
High Risk 11 7.3
It’s too complicated 22 14.7
Lack of Awareness 48 32.0
Potential to be scammed 35 23.3
Total 150 100.0
Source: Primary Data

INTERPRETATION:
Above the table shows that, Respondents concerns while investing cryptocurrency, 34
(22.7) Difficulty in Buying and selling, 11(7.3%) High Risk, 22 (14.7%) it’s too
complicated, 48 (32.0%) Lack of Awareness, and Potential to be scammed 35(23.3%).
INFERENCE:
Hence, Most of respondents 48 (32.0%) said Lack of awareness.
CHART NO 4.4.2

RESPONDENTS MAJOR CONCERN WHILE INVESTING IN

CRYPTOCURRENCY

48

34 35

22

11

Difficulty in High Risk It’s too complicated Lack of Awareness Potential to be

Buying and Selling scammed

55
4.4.3 THE FOLLOWING TABLE SHOWING RESPONDENTS OPININION
ABOUT CRYPTOCURRENCY IS SAFE INVESTMENT OPTION.
The following table shows the respondents opinion about cryptocurrency is safe
investment option.
TABLE NO 4.4.3
RESPONDENTS OPINION ABOUT CRYPTOCURRENCY IS SAFE
INVESTMENT OPTION

Frequency Percent

Yes 72 40.0

No 18 12.0

Maybe 60 48.0

Total 150 100.0

Source: Primary Data

INTERPRETATION:
Above table shows that, 72 (40.0%) respondents said cryptocurrency is safe investment
option, 18 (12.0%) respondents said cryptocurrency is not safe investment option and
remaining 60 said maybe.
INFERENCE:
Hence, majority of people 72(40.0%) think cryptocurrency is safe investment option
CHART NO 4.4.3

RESPONDENTS OPINION ABOUT CRYPTOCURRENCY

IS SAFE INVESTMENT OPTION
72
60

18

Yes No Maybe

56
4.4.4 THE FOLLOWING TABLE SHOWING RESPONDENTS OPINION ABOUT
CRYPTOCURRENCY WORTH IN 5 YEARS.
The following table shows the respondents opinion about cryptocurrency’s worth in
5 years.
TABLE NO 4.4.4
RESPONDENTS OPINION ABOUT CRYPTOCURRENCY WORTH IN 5YEARS
Frequency Percent
Significantly
38 25.3
more
Somewhat more 36 24.0
About the same 38 25.3
Somewhat less 24 16.0
Significantly less 14 9.3
Total 150 100.0
Source: Primary Data
INTERPRETATION:
Above table shows that, 38 (25.3%) respondents said Significantly more, 36 (24.0%)
respondents said some what more, 38 (25.3%) said about the same, 24 (16.0%) said somewhat
less only 14(9.3%) respondents said significantly less.
INFERENCE:
Hence, Majority of respondents 38 (25.3%) said cryptocurrency worth will be Significantly
more and about the same.
CHART NO 4.4.4

RESPONDENTS OPINION ABOUT CRYPTOCURRENCY WORTH IN

5YEARS

Significantly more Somewhat more About the same Somewhat less Significantly less

57
4.4.5 THE FOLLOWING TABLE SHOWING RESPONDENTS ANTICIPATING
ABOUT CRYPTOCURRENCY “CRASH”
The following table shows the respondents anticipating about cryptocurrency
“crash”
TABLE NO 4.4.5
RESPONDENTS ANTICIPATING ABOUT CRYPTOCURRENCY “CRASH”
Frequency Percent

Yes, in the next 12 months 28 18.7

Yes, within 2-5 years 32 21.3

Yes, in other 5 years 68 45.3

No 22 14.7

Total 150 100.0

Source: Primary Data

INTERPRETATION:
From the above table, respondents anticipate cryptocurrency crash in the next 5 year by 68
(45.3%) respondents, within the 2-5 years by 32 (21.3%) respondents, in other 12 months
by 28 (18.7%) respondents and remaining 22 (14.7%) respondents said no.
INFERENCE:
Hence, Majority of respondents 68 (45.3%) are anticipate cryptocurrency crash in next 5
years.
CHART 4.4.5

RESPONDENTS ANTICIPATING ABOUT CRYPTOCURRENCY

“CRASH” OR “BUBBLE”
68

32
28
22

Yes, in the next 12 months Yes, within 2-5 years Yes, in other 5 years No

58
4.4.6 THE FOLLOWING TABLE SHOWING RESPONDENTS RISK
INVESTMENT
The following table shows the respondents risk investment stock market or
cryptocurrency.
TABLE NO 4.4.6
RISK INVESTMENT IS, STOCK MARKET (OR) CRYPTOCURRENCY

Frequency Percent

Stock market 46 30.7

Cryptocurrency 48 32.0

Both are equally risk 56 37.3

Total 150 100.0

Source: Primary Data

INTERPRETATION:
From the above table, 46 (30.7%) respondents said stock market is risk, 48 (32.0%)
respondents said cryptocurrency is risk and 56 (37.3%) respondents said both are equally
risk.
INFERENCE:
Thus, Majority of respondents 56 (37.3%) are said both cryptocurrency and stock
market are risk.
CHART NO 4.4.6

RISK INVESTMENT IS, STOCK MARKET (OR)

CRYPTOCURRENCY
56
46 48

Stock market Cryptocurrency Both are equally risk

59
4.4.7 THE FOLLOWING TABLE SHOWING RESPONDENTS REASON TO USE
CRYPTOCURRENCY

The following table shows the respondents reasons to use cryptocurrency.

TABLE NO 4.4.7
RESPONDENTS REASONS TO USE CRYPTOCURRENCY

Frequency Percent

Anonymity from Government 46 30.7

Freedom from Bank 73 48.7

Speculation 31 20.7

Total 150 100.0

Source: Primary Data

INTERPRETATION:
From the above data, respondents’ reason to use cryptocurrency is Anonymity from
government 46(30.7%) Freedom from bank 73 (48.7%) and speculation 31 (20.7%)
INFERENCE:
Thus, majority of respondents reason to use cryptocurrency is Freedom from Bank 73
(48.7%)
CHART 4.4.7

RESPONDENTS REASONS TO USE CRYPTOCURRENCY

73

46

31

Anonymity from Government Freedom from Bank Speculation

60
4.4.8 THE FOLLOWING TABLE SHOWING RESPONDENTS
RECOMMENTATION CRYPTOCURRENCY TO OTHERS

The following table shows the respondents recommendation cryptocurrency to

others.

TABLE NO 4.4.8
RESPONDENT’S CRYPTOCURRENCY RECOMMENDATION
Frequency Percent

No 32 21.3

Yes 118 78.7

Total 150 100.0

Source: Primary Data

INTERPRETATION:
From the above table, 118 (78.7 %) of respondents recommend cryptocurrency to others
and remaining 32 (21.3%) respondents don’t recommend cryptocurrency to others.
INFERENCE:
Thus, majority of respondent 118 (78.7%) recommend cryptocurrency to others.
CHART NO 4.4.8

RESPONDENT’S CRYPTOCURRENCY RECOMMENDATION

118

32

No Yes

61
 4.5 FACTORS ENCOURAGING AND DISCOURAGING TO BUY
CRYPTOCURRENCY

4.5.1 THE FOLLOWING TABLE SHOWING FACTORS CONSIDERED WHILE

INVESTING IN CRYPTOCURRENCY
The following table shows the respondents while considering while investing in
Cryptocurrency.
TABLE NO. 4.5.1
FACTORS CONSIDERED WHILE INVESTING IN CRYPTOCURRENCY

Factors Considered while Weighted

6 5 4 3 2 1 Rank
investing Cryptocurrency average

Top coins most people are

54 22 17 19 20 18 599.904 2
invested

Market capitalization 22 62 25 14 19 8 622.4286 1

The History Behind the

18 20 48 32 13 19 522.9524 4
currency

Liquidity level 29 16 29 44 14 18 530.9048 3

Transaction speed and cost 14 16 16 23 53 28 404.381 5

Crypto updates on unbiased

10 17 15 18 31 59 323.8571 6
websites
Source: Computed

INTERPRETATION:
The above table shows that 1st rank belong to Market capitalization, 2nd rank belong
to top coins most people invested, 3rd rank belong to Liquidity level, 4th rank belong to
history behind the currency, 5th rank belong to Transaction speed and cost and remaining
6th rank crypto updates on unbiased websites.

62
4.5.2 THE FOLLOWING TABLE SHOWING FACTORS ENCOURAGING TO
BUY CRYTOCURRENCY

The following table shows that encouraging to buy cryptocurrency.

TABLE NO 4.5.2

FACTORS ENCOURAGING TO BUY CRYTOCURRENCY

Strongly Agree

Factors

Neutral

Disagree

Disagree
Strongly
Encourage to Weighted
Agree

Rank
Buy Average
Cryptocurrency
Control Over
Asset Without 73 26 19 20 12 566.8667 1
Third-Party
Deflationary
9 80 31 23 7 504.5333 2
Asset
Transparent And
18 51 54 18 9 492.6667 3
Secure
Good Choice for
Long-Term 12 63 39 23 13 475.9333 5
Investment
Flexible And
Independent 19 57 40 21 13 485.9333 4
Trading
Source: Computed

INTERPRETATION:

The above table shows that 1st rank belong to Control Over Asset without Third Party, 2nd
rank belong to Deflationary Asset, 3rd rank belong to Transparent and Secure, 4th rank
belong to Flexible and Independent and remaining 5th rank Good choice for Long-Term
Investment.

63
4.5.3 THE FOLLOWING TABLE SHOWING FACTORS DISCOURAGING TO
BUY CRYTOCURRENCY

The following table shows that discouraging to buy cryptocurrency.

TABLE NO 4.5.3

FACTORS DISCOURAGING TO BUY CRYTOCURRENCY

Neutral

Disagree

Disagree
Strongly

Strongly
Factors Discourage to Agree Weighted
Agree

Rank
Buy Cryptocurrency Average

Exchange Risk 57 41 39 11 2 588.2 1

Theft and Hacking 22 78 31 16 3 547.2667 2

Technical Hitches 23 53 49 18 7 510.5333 4

No Central Authority 25 68 33 18 6 532.4667 3

Source: Computed

INTERPRETATION:

The above table shows that 1st rank belong to Exchange Risk, 2nd rank belong to Theft
Hacking, 3rd rank belong to No central Authority and 4th rank belong to Technical Hitches.

64
4.6 COMPARING RESPONDENT’S DEMOGRAPHIC FACTORS WITH
CRYPTOCURRENCY KNOWLEDGE
4.6.1 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENTS GENEDER

The following table shows that the respondents Cryptocurrency awareness

compared with the respondents Gender.
THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE
RESPONDENTS GENDER
TABLE NO. 4.6.1

Gender
Total
Female Male
Have you aware of the No 13 8 21
concept of
Cryptocurrency? Yes 58 71 129
Total 71 79 150

Chi-Square Tests
Asymptotic
Exact Sig. Exact Sig.
Value df Significance
(2-sided) (1-sided)
(2-sided)
Pearson Chi-Square 2.080a 1 .149
Continuity Correctionb 1.456 1 .228
Likelihood Ratio 2.087 1 .149
Fisher's Exact Test .165 .114
N of Valid Cases 150

Calculated Table Value:3.841 The minimum expected count is 9.94.

INTERPRETATION:
The percentage of who have high level of awareness among Male. Hence, it is observed
that who belong Male categories have high level of awareness, as the calculated Chi-square
value is less than the table value at five per cent level, there is a significant association between
age and level of awareness. Therefore, the null hypothesis is accepted.

65
4.6.2 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENT’S AREA

The following table shows that the respondents Cryptocurrency awareness

compared with the respondents Area.
THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE
RESPONDENT’S AREA
TABLE NO. 4.6.2
Area
Semi- Total
Rural Urban
Urban
Have you aware of the No 8 10 3 21
concept of
Yes 14 71 44 129
Cryptocurrency?
Total 22 81 47 150

Chi-Square Tests
Asymptotic
Value df Significance
(2-sided)
Pearson Chi-Square 11.588a 2 .003
Likelihood Ratio 9.786 2 .007
N of Valid Cases 150

Calculated Table Value:5.991 The minimum expected count is 3.08.

INTERPRETATION:
The percentage of respondents who have high level of awareness high among respondents
under the semi urban category and low level of awareness is also high among the Rural of
respondents. Comparing the percentage, it is observed that respondents are semi urban area has
high level of awareness. However, as the calculated chi- square value is high than the table
value at five per cent level, there is a significant association between area and level of
awareness. Therefore, the null hypothesis is rejected.

66
4.6.3 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENT’S AGE

The following table shows that the respondents Cryptocurrency awareness

compared with the respondents Age.

THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE

RESPONDENT’S AGE

TABLE NO 4.6.3
Age
18 - 25 26 - 30 31 - 35 36 – 40 Above
Total
Years Years Years Years 40
Have you aware of No 10 5 2 3 1 21
the concept of
Yes 68 37 12 11 1 129
Cryptocurrency?
Total 78 42 14 14 2 150

Chi-Square Test

Asymptotic
Value df Significance
(2-sided)
Pearson Chi-Square 3.039a 4 .551
Likelihood Ratio 2.281 4 .684
N of Valid Cases 150

Calculated Table Value:9.488 The minimum expected count is .28.

INTERPRETATION:
The percentage of who have high level of awareness high among 18 -25 years.
Hence, it is observed that who belong to above 40 age group of categories have low level
of awareness. Comparing the percentage, it is observed that respondents of 18 – 25 has high
level of awareness However, as the calculated Chi-square value is high than the table value
at five per cent level, there is a significant association between age and level of awareness.
Therefore, the null hypothesis is rejected.

67
 4.6.4 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENT’S EDUCATION

The following table shows that the respondents Cryptocurrency awareness

compared with the respondents Education.

THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE

RESPONDENT’S EDUCATION

TABLE NO 4.6.4

Education
Below Post
Diploma Graduate Others Total
HSC Graduate
No 2 5 8 2 4 21
Have you aware of the
concept of Cryptocurrency? Yes 4 25 57 11 32 129
Total 6 30 65 13 36 150

Chi-Square Tests

Asymptotic
Value Df Significance
(2-sided)
Pearson Chi-Square 2.465a 4 .651
Likelihood Ratio 2.047 4 .727
N of Valid Cases 150

Calculated Table Value:9.488 The minimum expected count is .84.

INTERPRETATION:

The percentage of who have high level of awareness is high among Graduate while low level
of opinion is high among Below HSC. Hence, it is observed that who are Post Graduate with
high level of awareness. As the calculated Chi-square value is high than the table value at five
per cent level, there does not exist any significant association between educational qualification
and level of awareness. Therefore, the null hypothesis is rejected.

68
4.6.5 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENT OCCUPATION

The following table shows that the respondents Cryptocurrency awareness

compared with the respondents Occupation.

THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE

RESPONDENT OCCUPATION
TABLE NO 4.6.5
Occupation
Government Private Self-
Others Total
Employee Employee Employment
Have you aware of No 6 2 10 3 21
the concept of
Yes 25 12 62 30 129
Cryptocurrency?
Total 31 14 72 33 150

Chi-Square Tests
Asymptotic
Value Df Significance
(2-sided)
Pearson Chi-Square 1.401a 3 .705
Likelihood Ratio 1.414 3 .702
N of Valid Cases 150

Calculated Table Value:7.815 The minimum expected count is 1.96

INTERPRETATION:
The percentage of who have high level of awareness is high among Private
employees while low level of awareness is high among Others. Hence, it is observed that
who are Others with high level of awareness. As the calculated Chi-square value is lower
than the table value at five percent level, there is a significant association between
educational qualification and level of awareness. Therefore, the null hypothesis is rejected.

69
4.6.6 THE FOLLOWING TABLE SHOWING THE AWARENESS OF
CRYPTOCURRENCY COMPARED WITH THE RESPONDENT’S MONTHLY
INCOME

The following table shows that the respondents Cryptocurrency awareness compared
with the respondents Monthly Income.

THE AWARENESS OF CRYPTOCURRENCY COMPARED WITH THE

RESPONDENT’S MONTHLY INCOME

TABLE NO 4.6.6
Monthly Income
Rs. 26,000 Rs. 51,000
Above Rs. Below Rs.
to Rs. to Rs. Total
75,000 25,000
50,000 75,000
Have you aware of the No 2 13 4 2 21
concept of
Yes 9 50 48 22 129
Cryptocurrency?
Total 11 63 52 24 150

Chi-Square Tests
Asymptotic
Value df Significance
(2-sided)
Pearson Chi-Square 4.822a 3 .185
Likelihood Ratio 4.942 3 .176
N of Valid Cases 150
Calculated Table Value:7.815 The minimum expected count is 1.54
INTERPRETATION:
The percentage of who have high level of awareness is high among with below 25,000 as
their family income while low level of awareness is also high among the above. Comparing
the percentages, those who have below 25,000 as their family income per month had high
level of awareness. However, as the calculated Chi-square value is higher than the table
value at five per cent level, there does not exists a significant association between monthly
income and level of awareness. Therefore, the null hypothesis is rejected.

70
 CHAPTER V

SUMMARY OF FINDING, SUGGESTIONS AND CONCLUSION

5.1 INTRODUCTION:
In This chapter has presented summary and findings that, researchers have made through
simple percentage and weighted Average.

5.2 SUMMARY OF FINDINGS:

The findings of this study based on analysis and interpretation in the previous chapter
and reference with the questions asked to the respondents.
• 81(54.0%) respondents are Semi-urban.
• 97 (64.7%) respondents are belonging to the age group of 18 - 25 years.
• 79 (52.7%) respondents are Male category.
• 65 (43.3%) respondents are Graduate.
• 72 (48.0%)respondents are Private Employees.
• 83(58.0%) respondents are Unmarried
• 63 (42.0%) respondents, income per month is below Rs.25,000.
• 110(73.3%) respondents are Nuclear Family.
• 63 (42.0%) respondents have Moderate Aware in Technology.
• 129 (86.0 %) are aware of concepts of cryptocurrency.
• 55 (36.7 %) respondents are Moderate Aware in Cryptocurrency Concept.
• 39 (26.0%) respondents are aware through social media
• 77(51.3%) respondents familiar with Bitcoin.
• 74 (49.3%) respondents interested to invest in Cryptocurrency.
• 72(40.0%) respondents think cryptocurrency is safe investment option
• 38 (25.3%) respondents predict the cryptocurrency worth will be Significantly more
and about the same in next 5years.
• 68 (45.3%) respondents are anticipating cryptocurrency crash in next 5 years.
• 56 (37.3%) respondents said both cryptocurrency and stock market are risk.
• 73 (48.7%) respondents have reason to use cryptocurrency is Freedom from Bank

71
WEIGHTED AVERAGE:

• The respondents considered the following factors when investing in cryptocurrency:

first, market capitalization, second, top coins most people invested in, third, liquidity
level, fourth, history behind the currency, fifth, transaction speed and cost, and sixth,
crypto updates on unbiased websites.
• The following factors are encouraging when investing in cryptocurrency: the first
rank belongs to Control Over Asset without Third Party, the second rank belongs to
Deflationary Asset, the third rank belongs to Transparent and Secure, the fourth rank
belongs to Flexible and Independent, and the fifth rank belongs to Good Choice for
Long-Term Investment.
• Factors that dissuade people from investing in cryptocurrency The first rank is
assigned to Exchange Risk, the second to Theft Hacking, the third to No Central
Authority, and the fourth to Technical Hitches.

CHI-SQUARE ANALYSIS:

GENDER:
There is a significant association between gender and level of awareness. Therefore, the null
hypothesis is accepted.

AREA:
There is a no significant association between area and level of awareness. Therefore, the null
hypothesis is rejected.

AGE:
There is a no significant association between age and level of awareness. Therefore, the null
hypothesis is rejected.

MONTHLY INCOME:
There is a no significant association between Monthly Income and level of awareness.
Therefore, the null hypothesis is rejected.

72
OCCUPATION:
There is a no significant association between Occupation and level of awareness. Therefore,
the null hypothesis is rejected.

EDUCATION QUALIFICATION:
There is a no significant association between Education Qualification and level of awareness.
Therefore, the null hypothesis is rejected.

5.3 SUGGESTIONS:

• More awareness should be created among students about cryptocurrencies. Students

have lesser knowledge about blockchain, which is very vital for cryptocurrency.
• Cryptocurrency and other future technology-driven financial systems should be
added to the curriculum.
• An issue common among the interviewees is the issue of security and lack of
government control in the market. They felt that, some regulations should be
induced by the governments, which shall increase the number of investors since the
investors shall believe it to be safer due to government norms.
• Various cryptocurrencies like bitcoin and ripple should be considered as good
investment options as the price was skyrocketing for a while.

5.4 CONCLUSION

In conclusion, the government needs to take into consideration that the citizens are still
unaware of the fact that something like this even exists. The younger generation is always good
at adopting new technologies but it’s older generation that faces problems. In the authors
opinion, cryptocurrencies might be a great new idea and will surely help India but we as Indians
are still not prepared for something like this, at least not right now. The Government first needs
to make sure people use digital payments and then move to digital currencies. It might take a
couple of years before India will be fully prepared for the adoption of digital currencies. So,
in the near future, we can expect cryptocurrency penetrating the market, so the present
generation should be ready for future products. Even though bitcoin is banned in India western
countries like the UK and the USA are doing in-depth research in this field, and many places
they accept cryptocurrency, and the social media giant Facebook is planning to come out with

73
its own cryptocurrency Libra which may bring tremendous growth. The future of the
cryptocurrency concept is promising, showing more opportunities for positive change and
progress in the e-business and e-payment sectors. With the rapid advancement and
improvement of technology, cryptocurrency will not stop progressing. There are steps forward
to improve and expand cryptocurrency concept since our study was conducted.

74
 BIBLIOGRAPHY

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awareness and perception regarding investment in Crypto currency with special
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➢ Dr. Kuldeep Chand, Sunidhi Kashyap (2018), “Impact of Cryptocurrency in

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(2018), “Cryptocurrencies – Advantages and Disadvantages”, ISSN 1857-9973 |
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➢ Redhwan Al-Amri, Nur Haryani Zakaria, Adib Habbal and Suhaidi Hassan
(2018), “Cryptocurrency Adoption: Current Stage, Opportunities, and Open
Challenges”, International Journal of Advanced Computer Research, | Vol 9(44)
ISSN (Print): 2249-7277 ISSN (Online): 2277-7970 | September 2018

➢ Shailak Jani (2018), “The Growth of Cryptocurrency in India: Its Challenges &
Potential Impacts on Legislation”, 2018

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➢ Prof. Blesson James, Prof. Manjari Parashar (2018), “Cryptocurrency: An
Overview on Its Impact on Indian Economy”, IJCRT | Volume 6 | Issue 2 | ISSN:
2320-2882 | April 2018

➢ Mark P. Doblas (2019), “Awareness And Attitude Towards Cryptocurrencies In

Relation To Adoption Among College Students”, International Journal of
Advanced Research and Publication | Volume 3 | Issue 4 | ISSN: 2456-9992 | April
2019

➢ Swati Shukla, Akshay. A (2019) “A Study On The Awareness And Perception

Of Cryptocurrency In Bangalore”, Indian Journal Of Applied Research | Volume
9 | Issue 4 | PRINTISSN No 2249-555X | April-2019

➢ Maria Gagarina, Timofey Nestik, Tatiana Drobysheva (2019), “Social and

Psychological Predictors of Youths’ Attitudes to Cryptocurrency”, Behav. Sci.
2019 | Volume 9 | doi:10.3390/bs9120118 | 2019

➢ Shikha Agarwal, Rakhi Arora (2019), “Hype around Bitcoin: Awareness and
Prospective in India”, International Journal of Management IT & Engineering |
Volume 9 | Issue 6 | ISSN: 2249-0558 | June 2019

➢ Mr.J.P.Jaideep, Mr. K.Rao Prashanth Jyoty (2019) , “A Study on

Cryptocurrency in India – Boon or Bane With special reference to Bitcoin”, JETIR
| Volume 6 | Issue 2 | February 2019Saad Alaklabi, Kyeong Kang (2021),
“Perceptions towards Crypto currency Adoption: A case of Saudi Arabian
Citizens”, IBIMA Publishing | Volume 2021 | ISSN: 2165-9982 | July 2021

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➢ Dr. Anil Kumar V, Swathy. P (2019),“A Study on Opportunities And Challenges
of Cryptocurrency In India With Special Reference to Bitcoin”, Volume 6 | Issue
1 | E ISSN 2348 –1269 - PRINT ISSN 2349-5138 | March 2019

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214x | 2021

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 ➢ Dr Mubarak, Hosmani Manjunath (2021), “A Study on Cryptocurrency in
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➢ Jake McMorrow, Mona Seyed Esfahani (2021), “An Exploration into People’s
Perception and Intention on Using Cryptocurrencies”. HOLISTICA| Vol 12 | Issue
2 | pp.109-144 | August 2021

WEBSITES:

• www.wikipedia.org
• www.investopedia.org

• https://blockgeeks.com/guides/whatcryptocurrency/

• https://www.statista.com/statistics/647523/worldwide-bitcoin-blockchain-size/

• https://www.marketsandmarkets.com/Market-Reports/cryptocurrency-market
158061641.html

78
 QUESTIONNAIRE

A STUDY ON AWARENESS AND ATTITUDE TOWARDS CRYPTOCURRENCY IN

COIMBATORE

----------------------------------------------------------------------------------------------------------------

Name of the Respondent:

1. Area
o Urban
o Semi-Urban
o Rural
2. Age
o 18 – 20 Years
o 21 – 30 Years
o 31 – 40 Years
o Above 40
3. Gender
o Male
o Female
4. Education
o Below HSC
o Diploma
o Graduate
o Post Graduate
o Others
5. Occupation
o Self-Employment
o Government Employee
o Private Employee
o Others
6. Marital Status
o Married
o Unmarried

79
7. Monthly Income
o Below Rs. 10,000
o Rs. 25,000 - Rs. 45,000
o Above Rs. 45,000
8. Do you have any technology Background?
o Yes
o No
9. How do you classify your Technology Background?
o Not at all Aware
o Slightly Aware
o Moderate Aware
o Very Aware
o Extremely Aware
10. Have you heard of the word “cryptocurrency” or “Bitcoin”?
o Yes
o No
11. Have you aware of the concept of cryptocurrency?
o Yes
o No
12. How do you classify your knowledge about Cryptocurrency?
o Not at all Aware
o Slightly Aware
o Moderate Aware
o Very Aware
o Extremely Aware
13. Where did you get the most knowledge about Cryptocurrency?
o Television
o News Paper
o Social Media
o Journals
o Magazine
o Friends

80
14. What kind of cryptocurrency are you aware of?
o Bitcoin
o Ripple
o Ethereum
o Dogecoin
o Litecoin
o Others
If others Mention it, ………………….
15. Do you have any interest to Invest in Cryptocurrency?
• Yes
• Maybe
• No
16. Rank the following Factors should be Considered while investing Cryptocurrency? (1-7)

Factors (1-7)

Top coins most people are investing in

Market capitalization
The History Behind the currency
Liquidity level
Frequency of Frequency
Transaction speed and cost
Crypto updates on un-biased websites

17. What is your major concern with investing in Cryptocurrency?

o High Risk
o Potential to be scammed
o Difficulty in Buying and Selling
o It’s too complicated
o Lack of awareness
o Others

81
18. What are the factors encouraging you to buy Cryptocurrency?

Strongly Strongly
Agree Neutral Disagree
Agree Disagree

Control over asset

without Third-party

Deflationary Asset

Transparent and
Secure
Good choice for
long-term investment
Flexible and
independent trading

19. What are the factors discouraging you to buy Cryptocurrency?

Strongly Strongly
Agree Neutral Disagree Disagree
Agree
Exchange Risk
Theft and Hacking
Technical Hitches
No central Authority
Required Hitches

20. Do you think Cryptocurrency is safe investment option in India?

o Yes
o No
o Maybe
21. In 5 years, do you think cryptocurrency will be worth more or less than today?
o Significantly more
o Somewhat more
o About the same
o Somewhat less
o Significantly less

82
22. Do you anticipate a cryptocurrency “crash” or “bubble bust”?
o Yes, in the next 12 months
o Yes, within 2-5 years
o Yes, in other 5 years
o No
23. In your opinion, which is risky?
o Stock market
o Cryptocurrency
o Both are equally risk
o All of the Above
24. Reason to use Cryptocurrency?
o Speculation
o Anonymity from Government
o Freedom from Bank
o Others
25. Do you recommend cryptocurrency to others?
o Yes
o No

Suggestions:
________________________________________________________________________
________________________________________________________________________

83
 International Journal of Research
Publication and Reviews
(Open Access, Peer Reviewed, International Journal)

ISSN 2582-7421 Sr. No: IJRPR 8357

Certificate of Acceptance & Publication

This certificate is awarded to D. Thamizharasi, and certifies the acceptance

for publication of research paper entitled “A STUDY ON AWARENESS AND
ATTITUDE TOWARDS CRYPTOCURRENCY IN COIMBATORE” in “International
Journal of Research Publication and Reviews”, Volume 3, Issue 4, 2022.

Signed Date 26/04/2022

Editor-in-Chief
International Journal of Research Publication and Reviews
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 2174-2177, April 2022

International Journal of Research Publication and Reviews

Journal homepage: www.ijrpr.com ISSN 2582-7421

A STUDY ON AWARENESS AND ATTITUDE TOWARDS CRYPTO

CURRENCY IN COIMBATORE
D. Thamizharasia, Dr. T.M. Hemalathab*
a
PG Student, Department of Commerece, Rathinam College of Arts and Science, Coimbatore, Tamil Nadu, India
b
Associate Professor and Dean of Commerce, Department of Commerce, Rathinam College of Art and Science, Coimbatore, Tamil Nadu , India

ABSTRACT
Money is a medium of exchange; it allows people to obtain what they need to live. Crypto currencies are a type of currency as well, meanwhile crypto
currencies are not available in physical form. Crypto currency is a form of digital asset that uses a distributed ledger to k eep track of transactions or
uses block chain technology to make transactions secure. The goal of the study is to determine how much knowledge about crypto currencies exists in
Coimbatore. The data was gathered by the distribution of structured questionnaires, with 150 of them being analyzed. A convenient sampling method is
adopted to select the sample respondents. As per the findings of the study, the massive number of persons is aware of crypto currency.

Keywords: Block chain, Crypto currency, Digital Asset

1. INTRODUCTION

A crypto currency is a sort of virtual or digital currency that can be used to make payments. It works in a similar way to real cash; it doesn't have
an any physical form and it relies on encryption to function. Certain conditions must be met before new units can be introduced because
cryptocurrencies operate freely and decentralized, without a bank or central authority. In the presence of third parties, cryptography is a method of
securing communication by using encryption and decryption. Cryptography makes use of computational algorithms and public keys, which act as a
user's digital identity and are shared with everyone, and a private key, which acts as a user's digital signature. A private key is kept concealed. We can
use bitcoin to conduct transactions at any time of day or night, and there are no limits on purchases or withdrawals. It is compared to opening a bank
account, which requires the submission of papers and other paperwork. Through innovative technologies, the society has been changed into a cashless
society. One of the phenomenal innovations in money is cryptocurrency, or digital money, which is not regulated by any authority or ce ntral bank and
is a universal currency. Simultaneously, this new currency has a couple of problems. Hence, many countries stepped back from its implementation.
That’s why there is an important need to understand cryptocurrency trading in India; how it operates, how it evolves, and the people who are involved
in these transactions. Lack of awareness has its rooted many things in general. People are unclear of what to do if they are defrauded by them.

2. OBJECTIVES OF THE STUDY

 To understand the awareness about Cryptocurrency in Coimbatore.

 To determine people's willingness to use cryptocurrency as a form of investing.

 To know the factors encouraging and discouraging to buy Cryptocurrency.

3. REVIEW OF LITERATURE

1. Dr. Anil Kumar V and Swathi P (2019) conducted to know the benefits & drawbacks of Bitcoin. Also, his study analyzed the lega l status,
challenges, and opportunities of Bitcoin in India. The information is based on secondary data. The study revealed that the lack of legislation
is considered the main concern in cryptocurrency systems. Because bitcoins have already achieved widespread popularity around the world,
banning them in India is not an option. It would be necessary to regulate the industry.

2. Mr. J. P. Jaideep and Mr. K. Rao Prashanth Jyoti (2019) conducted a study on "Cryptocurrency in India – Boon or Bane with special
reference to Bitcoin". The current study is concerned to determining the function and influence of Bitcoin. As India is in the technical era,
techno-Indians speak, invest, and possess Bitcoin. According to the research, there are some firms accepting the Bitcoin trading. An
examination into the transparency has established and business module of those individuals and firms who deal with Bitcoin.

3. Akshay A, Swati Shukla (2019) aimed to study the awareness and perception level of cryptocurrency. The survey was finally complete
using a questionnaire-based survey method called primary data collection. According to the poll results, most people are aware of
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 2174 - 2177, April 2022 2175

cryptocurrency and would like to include it in their investing portfolio because it offers a good return. However, due to a lack of restrictions,
they are unwilling to invest in cryptocurrency.

4. Dr Mubarak, Hosmani Manjunath (2021) conducted a study to compare the investment risk between Bitcoin and gold. The secondary data
was taken to achieve the investigation. This study concluded that to make a speculative bet on bitcoin, do it with it functioning in regular
trading and compare the investment risk between bitcoin and a small single-digit portion of assets. There isn’t sufficient evidence to suggest
either will deliver more consistent returns. But investing in gold is better because it will give a consistent return as compared to bitcoin.

4. METHODOLOGY

The study on crypto currency awareness and attitudes in Coimbatore was carried out utilizing primary survey research using a convenience
sampling technique. The study is mainly based on primary data which is collected from the respondents in Coimbatore through the circulation of a
well-framed questionnaire and necessary guidance was given to the respondents for filling up the questionnaire. In order to analyses the data, we used
SPSS software. Descriptive data analysis is used to calculate the results of this study. The research acquired Secondary data from a variety of source
including financial websites, the government of India, books, journals, news-papers, and magazines, to meet the objectives of the research.

5. DATA ANALYSIS AND INTERPRETATION

This section breaks down the study's descriptive analysis into three sections: awareness, investment interest and factors encourage and discourage to
buy crypto currency.

Table: 1 Respondents Awareness about Cryptocurrency compared with demographic factors

Have you aware of the concept of

Cryptocurrency?
ITEM TOTAL
YES NO

AREA

Rural 14 8 22

Semi-Urban 71 10 81

Urban 44 3 47

GENDER

Male 71 8 79

Female 58 13 71

AGE

18 - 25 Years 68 10 78

26 - 30 Years 37 5 42

31 - 35 Years 12 2 14

36 - 40 Years 11 3 14

Above 40 1 1 2

EDUCATION LEVEL

Below HSC 4 2 6

Diploma 25 5 30

Graduate 57 8 65
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 2174 - 2177, April 2022 2176

Post Graduate 11 2 13

Others 32 4 36

OCCUPATION

Self-Employment 30 3 33

Private Employee 25 6 31

Government Employee 62 10 72

Others 12 2 14

MONTHLY INCOME

Below Rs. 25,000 50 13 63

Rs. 26,000 to Rs. 50,000 48 4 52

Rs. 51,000 to Rs. 75,000 22 2 24

Above Rs. 75,000 9 2 11

MARITAL STATUS

Married 57 6 63

Unmarried 72 15 87

Results show that overall, 71 Male and 58 Female are aware of Cryptocurrency. Compared to Females, Male gender have more awareness
on cryptocurrency.14 Rural, 71 Semi-Urban and 44 Urban. 6 respondents are 18 - 25 Years, 37 respondents are 26 - 30 Years, 12 respondents are 31 -
35 Years, 11 respondents are 36 - 40 Years and 1 respondent is Above 40 Years Old are had awareness on cryptocurrency. 4 respondents are Below
HSC, 25 respondents are Diploma, 57 respondents are Graduate, 11 respondents are Post Graduate and 32 are belongs to others. 30 respondents are
Self-Employment, 25 respondents are Private Employee, 62 respondents are Government Employee and 12 respondents are belonging to Others. Table
1 shows that, Awareness of Cryptocurrency among Coimbatore People is measured by making its comparison with various demographic factors like
Age, Gender, Area, Educational Qualification, Occupation and Monthly Income.

6. FINDINGS AND SUGGESTIONS

 People in the age group between 18 - 25 years recognized the highest level of awareness. According to the facts, the reason for owning
crypto currency is shown to be an interest in new technology.

 People who have studied higher education and higher income levels tend to be high aware of crypto currency. People reported that they do
not trust any private currency. And also, it’s not a widely accepted mode of payment.

 Males are getting more involved in this new trend as it is a whole new concept for investment purposes. Besides investing in this, male
investors prefer to invest in the stock market and mutual funds. Users are concerned about their privacy when using Bitcoin technology. Bit
coin has some potential in the Indian market and may be employed in the future.

 The current study's findings imply that in order for consumers to accept crypto currency as an online payment option, first they must become
aware of it. When adopting Bitcoin technology, users are concerned about their privacy. In the Indian market, Bitcoin has some potential
and It's possible that it'll be allowed to work in the future. According to the conclusions of the current study, customers still must be awa re
of the crypto currencies before accepting them as an online payment option.

7. CONCLUSION

In an era where cryptocurrencies have grown more widely accepted than ever, and have mass adoption in mainstream markets, Numerous
applications and websites that allow the purchase and transfer of cryptocurrencies, as well as payment merchants like PayPal, allow transactions to be
completed using cryptocurrencies. Cryptocurrencies are a fascinating financial invention with several study possibilities. As with many new
technologies, there is a lot of misunderstanding about the core notion of cryptocurrencies, additionally to the methods for valuing them. Finally, there
have been many possibilities that it'll be allowed to work in the future research opportunities in the cryptocurrency area. T he most liquid
 International Journal of Research Publication and Reviews, Vol 3, no 4, pp 2174 - 2177, April 2022 2177

cryptocurrencies had a bubble burst in 2022, but the study potential goes well beyond that. In this new field of finance and economics, there is a lot to
be done.

REFERENCE

[1] Dr. Anil Kumar V, Swathi P (2019), “A Study on Opportunities and Challenges of Cryptocurrency in India with Special Reference to
Bitcoin”, Volume 6 | Issue 1 | E ISSN 2348 –1269 - PRINT ISSN 2349-5138 | March 2019

[2] Mr. J. P. Jaideep, Mr. K. Rao Prashanth Jyoti (2019), “A Study on Cryptocurrency in India – Boon or Bane With special reference to
Bitcoin”, JETIR | Volume 6 | Issue 2 | February 2019

[3] Swati Shukla, Akshay A (2019) “A Study on the perception and awareness of Cryptocurrency in Bangalore”, Indian Journal of Applied
Research | Volume 9 | Issue 4 | PRINTISSN No 2249-555X | April-2019

[4] Dr Mubarak, Hosmani Manjunath (2021), “A Study on Cryptocurrency in India”. International Journal of Research and Analytical Reviews |
Volume 8 | Issue 1 | (E-ISSN 2348-1269, P- ISSN 2349-5138) | February 2021

[5] www.investopedia.com

[6] www.wikipedia.com