Diwali 2022 Gift Cryptocurrency Better Than Gold Bitcoin Tarality Tech Tribune France

Diwali is fast approaching and you must be wondering what gifts to give your loved ones this year. For centuries, India has been one of the world’s major markets for gold. Buying and donating gold is usually customary during Diwali as it is one of the main instruments of long-term investment – ​​a hedge against inflation and rising prices. The World Gold Council (WGC) has estimated that Indian households may have accumulated up to 25,000 tonnes of gold. This represents approximately 12.65% of the total 1,97,576 tonnes of gold mined throughout history.

However, youngsters are now looking to go digital with their gold. With the evolution of the global financial system and the awareness of millennials, several Indians are actively investing in cryptocurrencies.

Investors believe that cryptocurrency donations are not only efficient and more convenient, they are also among the gifts that have the potential to increase in value. In a nutshell, we can say that digital currency may be volatile, but is considered “digital gold” by new millennials.

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Crypto versus Gold

There are several strong arguments in favor of the yellow metal, which makes it the essential asset at festivals. But crypto is quick to challenge all of these arguments. Looked:

Rare and limited offer

Crypto is scarce and has a limited supply and cannot be created at will. It also means that no government can control or simulate it. On the other hand, the yellow metal is valuable as a material for consumer goods such as jewelry, and it is not in abundance. However, the rarity of gold keeps changing, depending on your efforts to find it.

Sustainability

Both crypto and gold are almost perfectly sustainable. As long as the internet continues to function, cryptography will remain in use.

Divisibility

Technically, crypto can be split into chunks. For example, one Bitcoin can be divided into individual satoshis, with 100,000,000 satoshis making up 1 BTC. However, gold cannot be split as easily or as precisely, but it can be minted into smaller denominations.

Purity

Crypto and gold cannot be counterfeited and duplicated. Simply put, cryptography is easy to recognize and impossible to counterfeit. On the other hand, gold is quite recognizable, although it must be tested for purity under certain circumstances.

Volatility

It’s not that only crypto is volatile. Experts say that even the yellow metal has had its volatile days. One could argue about the volatility associated with crypto prices, but let’s not forget that even gold has seen its share of volatile periods before becoming an institutional asset. Crypto, as an asset class, is quite young and volatility would be significantly reduced as the crypto market grows and more institutional players start to move in.

Different Ways to Gift Cryptos

There are several ways to send cryptocurrency to your loved ones as a gift:

> A crypto trader or investor can offer cryptocurrency through a cryptocurrency exchange using crypto gift cards, crypto paper wallets, crypto tokens, etc.

> A crypto trader can purchase gift cards from a cryptocurrency exchange for the purpose of gifting them to friends and relatives.

> A crypto trader can also offer a crypto paper wallet, i.e. a piece of paper with a unique private key and bitcoin address.

> A crypto trader can offer a crypto token, i.e. a virtual token or a crypto denomination in the form of a token.

Tax exemptions for crypto gifts

Giving away crypto can be a convenient way to share wealth with loved ones. But there are some things to consider before sending, receiving or selling such gifts – especially, if you will have to pay taxes on them and how much.

During the Union Budget 2022, it was announced that the gift of crypto would be taxable in the hands of the recipient. Based on the amendments made to the Finance Bill 2022, the tax in accordance with the income tax provisions (Article 56) also applies to the donation of cryptocurrency.

Therefore, the donation of cryptocurrency, NFT or other virtual digital assets is taxable in the hands of the recipient if received from a non-relative for a value greater than Rs 50,000.

Here is when the income tax exemption applies to crypto gifts:

> VDA (virtual digital asset) gift worth up to Rs 50,000.
> VDA gift (virtual digital asset) worth more than Rs 50,000 received from a relative.
> Donation of VDA (virtual digital asset) worth more than Rs 50,000 received from a taxable non-relative in the hands of the recipient.
> Received on the occasion of a marriage, an inheritance or a will, or in the event of death.

Is Crypto a Good Gift?

Similar to offering a gift card for a retail store, offering crypto can be exciting for both sender and receiver. Plus, it’s a gift that could end up being worth a lot more in the future.

But also consider whether the crypto will be difficult for the person to manage and how you will feel if the crypto ends up losing value instead.

Over the past few years, Bitcoin and some sister cryptocurrencies have been invented, and they significantly encroach on the main use cases for gold, such as flight capital and safe-haven investment.

Bitcoin has seen a remarkable 100x improvement over gold as a store of value. The world is realizing this growth of eminence and is starting to revalue digital currency in real time. Experts also believe that it is likely to continue to appreciate in US dollars over the next few years.

(The author is the founder and CEO of Tarality, a next-generation multifunctional crypto platform that aims to streamline the laborious and error-prone process of traditional banking platforms by providing greater transparency, enhanced security, and high-speed transactions.)

Disclaimer: The opinions, beliefs and views expressed by the various authors and forum participants on this website are personal. Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any loss arising from such transactions. Cryptocurrency is not legal tender and is subject to market risk. Readers are advised to seek expert advice and carefully read the offering document(s) and important related material on the subject before making any type of investment. Cryptocurrency market forecasts are speculative and any investment made will be at the sole cost and risk of the readers.

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Diwali 2022 Gift Cryptocurrency Better Than Gold Bitcoin Tarality Tech Tribune France


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