There is no doubt that India is harboring the largest number of cryptocurrency owners in the world. But the tremors created by the news on cryptocurrency and regulation of official digital currency Bill,2021 which was then to be introduced in the winter session of the parliament did the bloodshed.
There was an uncontrolled selling of cryptocurrency on exchanges. Most of the CEOs of the cryptocurrency exchanges were issuing statements one after the other, urging the investors to keep calm and not sell in panic.
Bitcoin plunged 9.28%, Ethereum was down by 11.95% and the similar was the situation with all the other coins.
The stakeholders in the crypto industry are hopeful that the government will not take harsh steps as the investment in sectors is huge.
The fact of the matter is that neither the investors nor the crypto exchanges have confidence in the whole gamut of cryptocurrency. Those who have invested are only taking the advantage of the situation.
Do you remember the old adage-
" Make hay while the sun shines."
Here is a recap on the well-known fact about cryptocurrencies -
a) This is not considered as an approved medium of exchange by a Central Bank barring some countries.
b) Can't be regulated as it is a virtual currency.
c) It is difficult to trace the buyer and seller of the Bitcoins and risks of fraud are higher. However, some say the blockchain technology ensures this traceability part; rather traceability is one of the advantages being highlighted.
d) Value is not stable, it's highly volatile.
e) The one who knows blockchain technology algorithms and has the required hardware, power of the internet, electric power supply available in plenty can generate Bitcoins.
As per the media reports, only 10-15% of the investors have sold their holdings. Now, there could be some investors who would go on buying the dipped currency, enhancing the chance of buying spree.
Most likely, the Crypto will be allowed as an asset class, not as a currency in India, unlike the other countries, because Indians are ahead with the investment up from $923mn in April 2020.
According to Ashish Singhal of CoinSwitch Kuber, there should be a separate regulator for Crypto, because the array of crypto is vast. It could be an asset or a commodity or a currency. SEBI and RBI could be the regulators. Believing the fact that crypto has more cons, we should utilize the wisdom to use the pros to the fullest. We should aggressively learn from other countries as to how they have planned to use the power of cryptocurrencies and blockchain.
Cryptocurrency has opened myriad options and has caught everyone's eye during the Covid-19 crisis. Even today, when there is gripping news about "Great Resignation", cryptocurrency has been cited as one of the options relying on which the massive workforce has boldly quit jobs.
I even came across a live example of the miracle of cryptocurrency, where a senior citizen who got Covid-19 affected could come out of this deadly virus due to his investments in cryptocurrency. He was admitted to Fortis Hospital in Chandigarh for almost two months. Now, think of the expenditure of being on ventilators and special ward. Well, the patient could meet all the expenses just because, he had invested in cryptocurrency which had reaped him benefits.
This has even spread across the villages. I know a man whose father after retirement invested rupees 50,000/- each in the name of his both sons. Today, after three years down the line, when we are assessing their portfolio, it's running into lakhs. Which is a considerable amount!
Another reason that majority of the people are going for crypto is that they are finding this as one of the means to counter the inflation issue.
The banks at the moment are not attracting many of them. Banks are only up for those who want to live secured and keep their money stash with slow-paced growth.
CONCLUSION
Despite the news of cryptocurrency getting banned in India and the introduction of the new bill to regulate the same, the investors are quite confident and bullish on their choice to remain invested.
The bill is still being debated. The general sentiment is that cryptocurrency is here to stay.
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