WHAT IS DOGECOIN? IS IT LEGAL IN INDIA?

Law
11-May-2021
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"Dogecoin is known to have started as a meme Cryptocurrency. However, it is the vigor and drive of social media and memes that, Doge price in India today is INR 40."

Dogecoin has now become a much talked about and articulated topic of broad and current interest worldwide. Several capitalists, bankers, investors are beefing up the fact that cryptocurrencies will change the way of future payments. Isn't it surprising that Dogecoin has given 1000 percent returns this month and is gaining support from billionaires, celebrities, and athletes like Elon Musk, founder of Tesla, and Dallas Mavericks owner Mark Cuban? They all have one thing in common to say, which is that Cryptocurrency is here to stay. Snoop Dogg also talked about it. Nevertheless, the past one and a half years have been a comeback of altcoins.

What are Altcoins?

Every coin/Cryptocurrency apart from bitcoin is called an altcoin. Examples would be Vechain, Dogecoin, etc. Altcoin prices have risen gradually over the past year, which is even overshadowing the profit gains from bitcoin. Altcoins have been an attractive investment for investors who are looking for more profits in less time. In recent times an altcoin called Dogecoin has been gaining importance. 

Let us move to know what exactly is Dogecoin and whether or not it is legal in India.

What is Dogecoin?

Billy Markus and Jackson Palmer created Dogecoin. It is a meme-based cryptocurrency created in 2013 and was quickly grew as a community. Doge was considered a meme more than a serious currency back then. It was named after Shiba Inu's meme, the dog from the "Doge" meme, also used as its logo and namesake. 

Unlike most other cryptocurrencies, Dogecoin is infinite, meaning there is no upper cap on the minting or creation of this token. This also means the price can never be indefinitely driven up because of its scarcity.

FUN FACT!!!

According to CoinMarketCap, Dogecoin has been widely used to tip on Reddit and Twitter to reward the creation or sharing of quality content. They donated millions of these coins for relief funds and other aids at the height of their success.

History of Dogecoin

IBM software engineer Bili Markus, who is from Portland, Oregon, along with Jackson Palmer, who is an Adobe software engineer, created Dogecoin. They wanted to develop a broader and larger digital market than bitcoin through this peer-to-peer digital currency. 

Is Dogecoin legal in India?

The biggest question now is, is trading Dogecoin legal in India? Until 2018, it was illegal to trade (buying and selling) cryptocurrencies in India when the Hon'ble Supreme Court decided to legalize it. Since then, the cryptocurrency market and industry have mushroomed, and millions of Indians have invested in this prospering industry. So long story short, yes, buying Dogecoin is legal in India.

It is being said that the Government may consider a blanket ban on Cryptocurrency. However, it is said that Indians should be aware of the crypto market as no laws govern the same. Nonetheless, the fact that there hasn't been a bill introduced regarding the same gives us hope that the Government is examining and researching it.

How to buy Dogecoin in India?

The number of people investing in Dogecoin has been increasing in India. However, buying Dogecoin in India can be a tedious process. To save us from all the nitty-gritty in buying crypto, there are crypto exchanges that are in the form of apps/websites. Crypto exchanges are apps/websites like WazirX, Binance, or Robinhood that allow amateur investors to trade and invest in crypto in a reasonably easy manner.

There are many exchanges in India through which people can buy cryptocurrencies like WazirX and Kuber.

Follow the steps given below to invest in Dogecoin.

● Install a reputed Indian crypto exchange such as Coinswitch/WazirX/CoinDCX

● Set an account by registering yourself and verifying through KYC.

● Add your bank details/UPI details to the app and add money to the wallet once the bank/UPI details have been registered.

● You can now buy Dogecoin in India or any other cryptocurrencies which are available for purchase.

Indian Crypto Bill & the concerns regarding Cryptocurrency-

Lack of proper infrastructure, anonymity, and inconsistent tie-ups with banking partners have agitated prospective investors in India. The authorities have questioned and voiced their concerns over the same regarding the Indian Cryptocurrency Bill. Although the government has expressed a positive response towards blockchain technology, the future of cryptocurrency still remains in question. 

Read more: A LAWYER APPROACHED BOMBAY HC THROUGH PIL SEEKING CRYPTOCURRENCY MARKET REGULATIONS

Is Dogecoin the future?

Of course, 100x of your investment is tempting, but if a coin can shoot up the sky after an influencer's tweet, it won't take long to hit the dip. The coin's fundamental was fun, based on a meme, and history has discerned the volatility of such coins. 

Conclusion

As Cryptocurrency is becoming a more favored and sought-after investment option globally, more and more people have been investing in it. Nonetheless, a complicated process but deep research is being done to establish a nationwide trading platform for bitcoin and altcoins. It is always advised that before entering into investing, thorough market research should be done. No doubt, the existing cryptocurrency exchanges like WazirX have made it easier to study the market. People can buy crypto easily and securely; caution while investing is necessary. As Elon Musk recently advised that people should not put their life savings on Cryptocurrency.

The future of Dogecoin in India may or may not be as bright, so invest only what you can afford to lose; the fad may die out soon! 

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Author: Shweta Singh