Cryptocurrency for Rakhi 2023: Thinking of gifting Bitcoin, Ether to your sister? Key things you should know
The Shift to New-age Financial Gifts
The festival of Rakhi, which celebrates the bond between siblings, has seen a shift in gifting trends. In recent years, people have moved away from traditional gifts such as cash and gold, and have started to embrace new-age assets like stocks, mutual funds, and even cryptocurrency. This modern twist to the age-old tradition not only adds a unique dimension to the gifting experience but also promotes financial empowerment.
Understanding Cryptocurrency
Cryptocurrencies are digital currencies designed to facilitate the buying and selling of goods and services. They operate without the need for intermediaries like banks or financial institutions. Bitcoin and Ether are among the most well-known cryptocurrencies, but there are other popular coins like cardano, Tether, and Dogecoin.
Gifting Cryptocurrency
Gifting cryptocurrency has become increasingly popular, and it presents an opportunity to introduce recipients to the world of digital assets. Edul Patel, CEO and co-founder of Mudrex, highlights that gifting crypto aligns with the idea of offering value through digital means and capitalizing on the potential for appreciation and stability. It enhances the overall gifting experience, combining a modern twist with the age-old tradition of Rakhi.
Tax Benefits and Other Advantages
Gifting cryptocurrency also comes with certain tax benefits. In India, there is a tax exemption of up to ₹50,000 for various forms of gifting, including cryptocurrencies. This provision encourages the integration of digital assets into the gifting process and promotes financial empowerment.
Taxation of Cryptocurrency in India
It is important to note that in India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. The gains from cryptocurrency investments are taxable. The Indian government’s stance on cryptocurrencies was clarified in the Union Budget 2022.
Editorial and Advice
The Philosophy of Gifting
The act of gifting is deeply rooted in human culture and carries various philosophical implications. It is a way to express love, gratitude, and care for our loved ones. Traditionally, gifts have been physical items that hold sentimental value. However, the rise of digital assets like cryptocurrencies challenges the traditional notion of gifting.
The Impact of Crypto Gifting
Gifting cryptocurrency can be seen as a symbol of embracing the modern world and technological advancements. It provides an opportunity for the giver to introduce the recipient to the world of digital assets and the potential for financial growth. By gifting cryptocurrency, individuals can impart a sense of financial empowerment and open up new possibilities for their loved ones.
Considerations and Risks
While gifting cryptocurrency can be an exciting and innovative choice, there are considerations and risks that need to be taken into account. Cryptocurrencies can be volatile, and their value can fluctuate greatly. It is crucial to educate the recipient about the risks and potential rewards associated with cryptocurrency investments. Additionally, individuals should ensure that they comply with tax regulations and understand the legal implications of gifting cryptocurrency.
Alternative Financial Gifts
For those who are not comfortable with the volatility and risks of cryptocurrencies, there are other new-age financial gifts that can be considered. Stocks, mutual funds, and even digital gold are viable alternatives that offer potential financial growth. These options still provide the opportunity to introduce loved ones to the world of investment and empower them financially.
Conclusion
As Rakhi approaches, the choice of the perfect gift becomes a matter of thoughtful consideration. Gifting cryptocurrency can be a unique and meaningful option that aligns with the changing times and offers a glimpse into the world of digital assets. However, it is important to be aware of the risks and responsibilities that come with cryptocurrency investments. Regardless of the chosen gift, what truly matters is the love and connection shared between siblings, which remains at the heart of the Rakhi festival.
<< photo by Karolina Grabowska >>
The image is for illustrative purposes only and does not depict the actual situation.
