Topic :Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
4) What do you understand by cryptocurrency? Do you think legalising the crypto market can help beneficiaries emerge from the shadows and make productive investments in an economy witnessing a digital transformation? Critically analyse.(250 words)
Why this question:
The article discusses the current conditions of crypto market world across and the pros and cons associated, it analyses how cryptocurrency is something that can not be rejected as an idea in whole, rather world has to move forward and see it as a possibility with advantages in the ongoing digital transformation.
Key demand of the question:
Explain what you understand by cryptocurrencies; there advantages, disadvantages, debate upon whether they should be allowed.
Critically analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.
Structure of the answer:
Begin with brief introduction on what you understand by
Discussion should include the following: cryptocurrencies – It is a digital currency which allows transacting parties to remain anonymous while confirming that the transaction is a valid one. It is not owned or controlled by any institution – governments or private.
There are multiple such currencies bitcoin, ethereum, ripple are some of the popular ones. Currently, they are neither illegal nor legal in India.
Debate whether they should be used or banned?Discuss the Indian scenario.Weigh the pros and cons, take clues from the article, relate it to the current digital transformation era.
Conclude with a fair and balanced opinion.