Crypto trading in India: What next?

0
Want create site? Find Free WordPress Themes and plugins.

After the extremely good run in October when all major coins registered significant gains, with bitcoin surging 40 percent during the period. In India, the crypto fever gripped people by a storm just to shatter their dreams a fortnight later. But every market is susceptible to the lows and highs of market fluctuations. Those who are part of the cryptocurrency trade are still making fortunes with such gains. Those who are outside this bewildering phenomenon are on the edge with utter amusement and disbelief. All in all, this new trade market is being watched and observed by all. Interestingly, large-scale holders and miners of bitcoin are not making profit-booking even at this rate, when prices surged $10000 in 10 days. Rather, they are buying more from the sell-off by small investors and miners in clear anticipation that the bitcoin price would push to the $100000 mark in the short term.

The question now is – why India is choosing to bring in a law that would make bitcoin and all other assorted coins illegal in the country? Why is India pushing for a digital coin by its central bank, the Reserve Bank of India (RBI), whose value will never exceed the Indian rupee? After all, what’s the point of introducing a digital currency that’s no better than your debit or credit card, or so to say! On the other hand, by the time India is scrambling its response to investor-frenzy that the crypto sector has been witnessing over time, the crypto industry has crossed $2.5 trillion in market cap and is at a striking distance of $3 trillion. Bitcoin accounts for about $1.25 trillion, placing it ahead of Tesla and Meta in the list of companies with the highest market cap. Meanwhile, closer home, China has banned trading and mining of all cryptocurrencies in the country and has launched a crackdown, to the extent of snapping power supply, for instance, to crypto mining centers. It has launched a pilot project to introduce e-CYN, the official digital Yuan, which will formally be launched during the Winter Olympics in February 2022.

Technologically, spying or prying on what happens within blockchain networks is not possible. They are protected by the most stringent encryption systems. No government or central bank has access to these systems. It certainly doesn’t sound amusing to governments and central banks. All over the world, central banks are in a tizzy, not being able to stop the flight of capital to crypto, where the money is either mostly parked in sheer idleness or funding projects such as decentralized finance (defi) on the same blockchain network. In simple words, Defi is the loan facility to the members on the network from the money that members have parked there. Many believe that the cryptocurrency sector is ready with a parallel financial system that threatens to make the existing central bank monitored financial system obsolete. Therefore, by trying to push this legislation, the Indian government seems to be following the best responses that the governments around the world have been able to come up with. Amid the growing divergence of opinions between the central banks and the governments, the Indian crypto bill is likely aimed at achieving the balance that some crypto-friendly nations such as the US and Canada have struck.

Did you find apk for android? You can find new Free Android Games and apps.
Share.

Leave A Reply