Cryptocurrency

A cryptocurrency is a digital or virtual currency that uses cryptographic techniques to secure transactions, control the creation of new units, and verify the transfer of assets — operating on a decentralised blockchain network without the oversight of any central bank or government authority. Bitcoin, launched in 2009, was the first cryptocurrency; the ecosystem now encompasses thousands of cryptocurrencies including Ethereum, Solana, Ripple, and stablecoins pegged to fiat currencies. In India, the regulatory framework for cryptocurrencies is evolving — the Finance Act 2022 introduced a 30% flat tax on gains from virtual digital assets (VDAs) and a 1% TDS on transactions above specified thresholds, while RBI continues to express caution about private cryptocurrencies. For investors on Ventura Securities, cryptocurrencies represent a high-risk, high-volatility alternative asset class with no intrinsic cash flows, significant regulatory uncertainty, and pronounced liquidity risk — requiring careful consideration of portfolio allocation, tax obligations, and the distinction between speculative trading and long-term investment.