The Central Bank of India, Reserve Bank of India [RBI] released a press statement saying that Bitcoin and other cryptocurrencies are officially banned in India. Along with this statement, they went ahead to say that they will be launching their own fiat currency.
RBI will be introducing their own Central bank of digital currency whose sole responsibility will be to handle and regulate the fiat currency. The complete report regarding the same will be submitted by the end of June 2018.
In the official statement, the Central Bank says entities regulated by RBI will not be dealing with or provide services to any business or individual dealing with cryptocurrencies effective immediately due to the risk it possesses. The RBI will be providing a 3 months notice period to stop providing services for entities already providing services related to virtual currencies.
Nitindo Kania, a consultant, and a crypto-enthusiast says,
“RBI just screwed all the Indian cryptocurrency investors. Why can’t we find solutions instead of banning everything. Fuck.”
Athreya, an Indian cryptocurrency enthusiast says,
“It’s a step back in the search for innovation in virtual payments. Hundreds of different securities and exchanges take place both formally and informally in the payments and finance space in India. Banning a digital form of virtual currency outright prevents innovation and disruptive payments solutions from cropping up”
Kavitha, a Financial Advisor says,
“The move by RBI is astonishing. One side there is Narendra Modi propagating about Digital India and the other side, there’s RBI banning Bitcoin’s which is as digital as it can get.”
Blockchain Lawyer, a Twitterati, a Blockchain lawyer in India says,
“Isn’t it ironical that RBI is testing the feasibility of own DigitalCurrency, but not allowing entities controlled by it to deal with cryptocurrencies blockchains bitcoin Do we deserve a PIL here?
Jitendra Shah, a Bitcoin, and Ethereum enthusiast says,
“First beef ban, now Bitcoin ban. India is losing it.”
Karthik Kumar, a Marketing Manager at a reputed firm says,
“India following the foot-steps of China. I think they want to beat China in everything, the population, the pollution and now banning.”
Two months back, the Finance Minister, Arun Jaitley had made a statement regarding the same leading to speculations that Bitcoin was banned in India. His exact words were:
“The government does not recognise cryptocurrency as legal tender or coin”
According to CoinMarketCap, Bitcoin has dropped more than 5% in the past 24 hours and is currently trading at $6693 with a market cap of $113 billion.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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