THE LOSSES ACROSS CRYPTOCURRENCY DISADVANTAGE FOR THE INDIAN ECONOMY
bitcoin

THE LOSSES ACROSS CRYPTOCURRENCY DISADVANTAGE FOR THE INDIAN ECONOMY

Kotak Commodity Services Ltd

*Bitcoin investors have panicked sending the asset 13% into the red just in 4 days

*China's regulatory crackdown crypto market turned negative



According to reports, Indians own less than 1% of the world's Bitcoin. Being left behind will create a strategic disadvantage for the Indian economy. In 2021, we expect more institutions and government officials to recognize that we need to close the Bitcoin gap, said CEO, ZebPay Rahul Paghdipati. Despite the Reserve Bank of India (RBI) being wary of cryptocurrencies, Indians are making a beeline to invest in the digital coins, touted as the most important asset class of the 21st century.

India is increasingly adopting Bitcoin and other cryptocurrencies. According to this report, the country currently has more than one crore crypto investors, and the number is significantly growing every day with several domestic crypto exchanges operating in the country.

One Bitcoin hovering around $33,138 on Sunday after touching a record high of $64,374 just on 14 April. The second-largest cryptocurrency Ethereum was down 15% to lows of $ 1,865.85 from all time high $ 1,865.85 on 11 May. The losses across other altcoins were more severe, down in double-digit percentages. Now that Elon Musk and Tesla have retracted some of their support.

The Inner Mongolian province has also announced a whistleblower program for reporting on BTC miners. Bitcoin investors have panicked for a four-consecutive day, sending the asset 13% into the red. Bitcoin and the rest of the crypto market turned negative on May 22, as news of China's regulatory crackdown surfaced. The government issued a statement pledging to introduce tighter crypto regulations.

Prior to Saturday's announcement, the Financial Times reported on Friday that the Inner Mongolian province, which announced a ban on Bitcoin mining last month, had set up a dedicated whistleblower hotline to “comprehensively clean up and shut down” mining operations in the region. The region houses around 7% of the country’s Bitcoin mining operation.

The US Treasury then announced its plans to make crypto users report transactions worth over $10,000 to the IRS Internal Revenue Service. If implemented, the ruling would begin in 2023. Bitcoin dipped 8% from $41,500 to $38,100 within an hour of the news breaking.

Domino’s Pizza is a franchise that has many locations in the Netherlands. On May 22, it announced that its workers would be offered the option of getting paid in bitcoin instead of fiat currency. Any worker who receives more than the minimum wage can choose to receive the excess salary in crypto.

Last year, Goldman Sachs said cryptocurrencies were a bad investment. Today a new report suggest things may have changed. The report “Crypto, a new asset class” is not yet available to the public. Still, it has already been shared on social networks by investors with early access to these investigations. It should be available in full within a few days.

(Disclaimer: This analysis is only for educational purpose and is not and must not be construed as investment advice. It is analysis based purely on economic theory and empirical evidence. Readers are requested to kindly consider their own view first, before taking any position.) Date: 24-5-2021

Riddhi Siddhi Bullions Ltd

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