Crypto conundrum: Digital Currency future seems vague in India
In the absence of regulation and recognition by the Government of India, the future of cryptocurrencies seems to be in a disarray. The Central Government recently revealed that it will introduce a new bill on cryptocurrencies. There is no information so far on the contents of The Cryptocurrency and Regulation of Official Digital Currency Bill 2021.
Earlier, the IMC in its recommendations, had stated that private virtual coins lack attributes of a currency and cannot replace fiat currency.
"A ban will be out-of-sync with most evolved economies that are choosing to regulate the cryptocurrencies to capture their potential and manage risks. Countries like Algeria, Bolivia, China, Venezuela, and Saudi Arabia, that have banned cryptocurrencies, do not share any constitutional values with India. Singapore with its progressive regulation has attracted several Indian cryptocurrency startups. India has about 350 startups in this space that will perish," says Anirudh Rastogi, founding and managing partner, Ikigai Law.
While the debate on the future of cryptocurrencies goes on, only time will tell which direction would the finale unfold.
Americans are becoming increasingly bullish on cryptocurrency as bitcoin soars to new records
- A new study of 30,000 Americans reveals 50% view cryptocurrencies as safe investments.
- The survey also revealed 57% of investors think companies should accept crypto as payment.
- Though crypto enthusiasts have mixed opinions on whether bitcoin will ultimately serve as a medium of exchange or simply a store of value.
- See Tips and Tricks at Last To Know about bitcoin investing and mining
Bitcoin's record-breaking rally to a $1 trillion market capitalization on Friday has increased the buzz around cryptocurrencies. Debates on whether these are worthy investments have flourished among investors, analysts, and the public.
Despite critics arguing against the legitimacy of these assets, a new study reveals that cryptocurrencies are viewed as safe investments by 50% of Americans. Additionally, 41% of those surveyed said investing in the stock market and cryptocurrencies are equally risky investments.
Conducted by Piplsay, a global consumer research platform, the study surveyed over 30,000 people in February on their views on digital currencies.
"The crypto bull run has seized the attention of millions of people who previously had never considered digital currencies like Bitcoin to be an alternative asset," said Pavel Matveev, CEO of Wirex, a digital payments platform. "Bitcoin and other currencies are intended to have several uses, not least ease of exchange, purchase, and liquidity."
Some companies this year have already taken steps towards accepting cryptocurrency as a means of payment. PayPal in October 2020 said it will start allowing people to use cryptocurrencies starting this year, while Tesla announced in January it plans to start accepting bitcoin as payment. Investment banks JP Morgan and Morgan Stanley have both also expressed interest in considering cryptocurrency as payment.
Critics however are quick to argue that the volatility of cryptocurrencies makes them poor medium of exchange.
"If you bought a $50,000 Tesla with four bitcoins on October 1st, that purchase now has an opportunity cost of $212,000, because bitcoin's dollar price has risen from $10,000 to $53,000 in those four and a half months," said Robert Minter, Director of Investment Strategy, Aberdeen Standard Investments. "That type of volatility is unsuitable for transacting in an economy."
Bitcoin has skyrocketed in recent days, surging 60% this month alone. Ethereum, the second-largest cryptocurrency by market value, also soared to record highs Thursday. Even dogecoin, a cryptocurrency that began as a joke, has been gaining traction in recent weeks.
Enthusiasts argue bitcoin may exist solely as a form of value akin to "digital gold," while other forms of digital currencies will emerge as forms of payment.
Mike Venuto told Insider he doubts "we will ever buy coffee with bitcoin."
"This excitement obscures the reality of the original bitcoin thesis of decentralization, replacing the trusted third party and banking the unbanked," Venuto, who manages an approximately $1 billion ETF, said. "The focus now seems to be the store of value argument from the limited supply."
TIPS & TRICKS
Bitcoin has risen far more than expected ethereum and and
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