The main bank ICICI Bank has already announced a blockchain application for transactions with a few groups.
By Kshitij Purohit
Crypto’s story began in 2010 when a blogger exchanged 10,000 bitcoins for two pizzas. It was just the start of a new digital age and digital currencies are now widely traded all over the world, including India. According to major Indian exchanges, retail investors between the ages of 25 and 40 spend millions of dollars on cryptocurrency in India every day.According to the country’s largest cryptocurrency exchange, WazirX, the company has seen an increase of 125% of user registrations in the past six months, while rival CoinDCX said it saw an 85% growth in the number of traders in the last quarter. One can buy a crypto asset like Bitcoin or WazirX for as little as Rs148 right now. Bitcoin has gained enormous popularity in the world of blockchain and virtual currency standards. It has posted returns of over 9,000,000% since July 2010 and 300% since September 2020.
In India, there is no regulator for unregulated cryptocurrency and cryptocurrency transactions and its exchange has posed a great challenge. Cryptocurrencies are not legal tender in India, and although the exchanges are legal and the government has made it very difficult for them to operate. However, the central bank concluded that blockchain is indeed a disruptive technology that has the potential to revolutionize the financial industry. The Ministry of Finance also presented a proposal to impose an 18% GST on Bitcoin transactions, with the think tank suggesting that bitcoins may be classified as “ intangible assets. ” There are over 600,000 users in the country who have invested in Bitcoins and it is estimated that 7,200 crore can be received each year after withdrawing the same. Leading bank ICICI Bank has already announced a blockchain app for transactions with a few groups, while Axis Bank and Yes Bank are partnering with Ripple to offer cross-border payment services.
Technically, bitcoin has had a wonderful run from $ 10,000 to $ 41,682. After the 1.25% jump in U.S. yield, the highest since March 2020, and a strong dollar hint as the possibility of another round of the president’s impeachment plunged bitcoin nearly 20% from the peak. Investors are making profits and taking secure positions in the dollar. Bitcoin enjoys strong support near $ 30,000 if we place Fibonacci levels on the daily chart for the current run and prices will drop as investors post profits after a big rally. It will remain a favorite among traders as large institutional investors buy and explore the market.
PayPal is also announced to launch payment mechanisms in India with bitcoins. Hedge funds give bitcoin the edge over gold and take exposure for their clients. Many regulators have already started drafting regulations for crypto trading that show that much of the world will adopt digital currencies quickly. Prices may consolidate between $ 29,000 and $ 35,000 for a while, but it has a bright future after the big player enters the market to play its part for fear of running out.
(Kshitij Purohit is Head of Commodities and Currencies at CapitalVia Global Research Limited. Opinions expressed are personal. Please consult your financial advisor before investing)
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