• Cryptocurrency, Cryptonomics, Bitonomics, Nifty 50, Liquidity, World GDP, technological leverage.

Cryptocurrencies manifested by Gresham Law work in a free market mechanism driving out the controlled money supply regime with the trademark of transit value, medium of currency exchange and little bit payment standard. In lieu of increasing adaptability and massive returns on cryptocurrency, the author is intended to study select macroeconomic variables that affect cryptocurrency in India as well as in the world. Its current scenario & future prospects, opportunities & challenges of cryptocurrencies with special reference to Bitcoin. To study these objectives the author has employed techniques of correlation, ordinary least squares (OLS) and analytical research methods. In 76% countries cryptocurrency is legal to use, trade and hold. Bitcoin is the industry leader and more mature than others. One bitcoin was equal to INR 47, 87,818 on November 12, 2021 by then it accounted for 22, 067. 51 percent returns since November 2015. It is noticeable that a return on bitcoin is magnificent during economic disruptions. There is a negative correlation between World GDP and Bitcoin. In addition, there is a significant relationship between bitcoin and nifty 50 during the lockdown when GDP was in negative territory. One percent change in nifty fifty led to 1.37 percent change in bitcoin. Historical returns on bitcoin are derived by the global liquidity with increasing World Broad Money that has positive correlation with bitcoin, cheaper monetary policy across the major economies, and expanding technological leveragesmartphones, PCs, computers, application based trading and internet uses within the country and across the globe. Notwithstanding volatility and speculation due to legislative uncertainty and nose diving risk due to an asymmetric information & unregulated mechanism, cryptocurrency is like a water-diamond paradox celebrated by retail investors.

Cryptocurrency, Cryptonomics, Bitonomics, Nifty 50, Liquidity, World GDP, technological leverage.

"Bad Money Drives Out Good Money: Understanding the Economic Science of Cryptocurrency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 9, page no.f520-f532, September-2022, Available :http://www.jetir.org/papers/JETIR2209590.pdf

"Bad Money Drives Out Good Money: Understanding the Economic Science of Cryptocurrency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 9, page no. ppf520-f532, September-2022, Available at : http://www.jetir.org/papers/JETIR2209590.pdf