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Bitcoin [BTC] briefly goes down to $5400 in India after regulatory concerns – Exchanges say business is normal

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Is there a light at the end of the tunnel for India

Yesterday’s RBI notice which went viral on social media and several News publishing houses which stated that the Indian government was virtually banning the Crypto/INR pairing and thereby not allowing users to invest in cryptocurrencies through any RBI regulated banking system.

Within hours of this news breaking out, Bitcoin and Ethereum fell dramatically in Indian exchanges like Unocoin and Zebpay. Bitcoin briefly started trading at Rs. 3,56,000 (~$5400) and Ethereum started trading at Rs. 19500 (~$298).

At press time, the price of Bitcoin [BTC] in Unocoin, an Indian cryptocurrency exchange was Rs. 3,89,000 (~$5994) and Ethereum [ETH] was trading at Rs. 21,289 (~$328) which much lower than the global prices. Bitcoin according to Price.Ambcrypto and Coinmarketcap.com was at press time trading at $6844 and ETH was trading at $383 to a token.

Although chaos and anger prevailed among the Indian cryptocurrency investors, exchanges like Unocoin and Zebpay confirmed that business was normal was as usual.

Mirco Recksiek, a blockchain enthusiast in a recent Twitter post said,

“But still this move isn’t smart in my point of view and moves #India into the same corner as #China, both isolating themselves from global development of #cryptocurrencies and #Blockchain. This is what I would call overregulated…wrong turn.”

Ananth Shivkumar, the CTO of a blockchain startup in India says,

“Wow! Another blow. Does the government even know the amount of money these blockchain startups can actually pump into the government in the form of taxes? If you want to save the consumers then educate them and not ban it. Narendra Modi wants to make India a digital leader but everything he does now is going against it”

A representative from Unocoin’s customer relations said,

“Business is normal here, although we are yet to discuss this matter internally, we don’t think anything will change. Unocoin is headquartered out of Singapore and all our payments are processed from there and none of our users are getting affected right now. Netbanking payments, although is still a problem sometimes”

Sentiments in the Indian market has been bearish since Arun Jaitley’s budget speech earlier this year. The strong advocates of cryptocurrencies in India and other analysts feel the current stance by the government will just increase the chances of OTC and Cash crypto trading which might exactly be the thing the Indian government would not want.

India already has a very strong regulated cryptocurrency market with a strong identity and background verification process. With everybody hoping for a reversal of a decision, many expect a better, easier process for Indian investors.





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Andrea Pierre Jackson is a contributing News writer at AMBCrypto from December 2017. She has previous writing experience with major publishing houses in the UK and the US. Andrea currently does not hold any position in any cryptocurrency or its projects

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Bitcoin

Bitcoin’s volatility – an indication of growth or regression?

Biraajmaan Tamuly

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Bitcoin's volatility indicated to be a key aspect of its current success
Source: Pixabay

Market volatility plays a huge role in the financial ecosystem of assets and cryptocurrencies are regularly linked to its predominant effect. Whenever Bitcoin exhibits a rapid price movement in the market, the majority of the critics tagged the digital currency with extreme volatility and state that it would eventually lead to its downfall, since crypto assets cannot be trusted on a long term basis.

This assumption was recently widely questioned as data showed that over the last few months, the volatility rate had actually decreased for Bitcoin but the community continued to talk against the coin’s development solely on the basis of the crash witnessed by BTC after the bull run of 2017.

Pierre Rochard, a bitcoin enthusiast, recently spoke about the situation and stated, that the volatility might actually be one of the reasons why Bitcoin was starting to find prominent success in the market.

It was suggested that Bitcoin had been accumulating value over the years through various implementations and at specific time frames, short-term traders were causing an effect on the price, which would cause the “incidental price surge”. The price surge would then undergo correction and witness a fall but the price would continue to grow at a progressive rate.

The aforementioned reason can be backed by the fact that Bitcoin had indeed outperformed the likes of commodities like gold in the recent market analysis, and it was released that Bitcoin attained more profit in the long-term returns and risks asset trade in comparison to the S&P 500.

A recent data also exhibited that since 2013, any investment that included 5 percent Bitcoin to 95 percent fiat currency gathered more returns and lesser risk than the S&P 500; which also witnessed losses in 2017.

Twitter user @1Mark Moss indicated that Bitcoin was growing at it’s natural growth rate and stated,

“The volatility is the difference between perception and reality. And the reality is BTC continues to progress, just not as fast as the perception makes it seem sometimes… just part of the natural evolution.”

However, another user @JordiMorris1 explained that the people had more to do with the volatility and anything else. He said,

“The relationship of people towards Bitcoin is volatile. Bitcoin is predictible by nature, its production is stable independently of how crazy people go about Bitcoin. No sense to blame on Bitcoin.”





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