oppn parties Cryptocurrencies: Making A Comeback

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  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
  • IPL: Lucknow Super Giants to meet Royal Challengers Bangalore in the first Eliminator today. Winners to take on Rajasthan Royals for a place in the finals
  • IPL: Sensational David Miller blasts three sixes off the first three deliveries of the last over to help Gujarat Titans beat Rajasthan Royals by 7 wickets and enter their maiden IPL final in their debut year
  • While joining US-led IPEF, PM Modi says it will bring "peace and prosperity in the Indo-Pacific region"
  • Mamata Banerjee says Bengal government will not lower VAT as the excise cut by the Centre will already reduce state's revenue by Rs 641 cr
  • Mamata Banerjee says Central agencies must be made autonomous to save democracy
  • While commuting the death sentence of 2 men and 1 woman, the Supreme Court says convict's conduct before and after crime is vital for death penalty
  • Health minister Mansukh Mandaviya slams the Covid death report of WHO at the 75th session of World Health Assembly in Geneva
US President Joe Biden says India-US ties to be among "closest on earth" //////// China and Russia send bombers near Japan even as Quad leaders were holding meetings there /////// Gujarat Titans enter IPL finals in style, beat Rajasthan Royals by 7 wickets
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Cryptocurrencies: Making A Comeback

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

This June, cryptocurrency Bitcoin once again breached the $10000 barrier. It was after one year that Bitcoin reached this level and it was triple of what it was fetching in 2018. So why are investors once again flocking to buy the digital 'coin'? Why is there a renewed interest in something that is neither widely accepted nor legal in most parts of the world? Ever since Bitcoin touched dizzying heights (it touched $19783 in December 2017), financial regulators the world over, especially in emerging economies, have advised governments to ban it.

In fact, in India, a committee headed by ex-finance secretary Subhash Chandra Garg has recently put its report in the public domain. The report recommends that India should ban mining, holding, investing in or even providing services to facilitate any or all of these. In the same breath, the report also recommends that the government can think of floating its own digital currency if it so wishes. Hence, the committee is neither against the technology nor its viability. It is essentially against the private ownership of companies that facilitate these cryptocurrencies.

So is the cryptocurrency market maturing and more informed investors coming in after the initial hype that brought in the uninformed and the me-too walas, who more often than not burned their fingers and pockets? The present upswing, sans the hype, indicates as much. As Bitcoin outperforms other asset classes, even conservative fund managers and skeptics will not like to miss out. Further, cryptocurrency is being made mainstream with offerings from Facebook and JP Morgan.

Facebook has unveiled that it is going to launch its cryptocurrency Libra anytime soon. JP Morgan is also coming out with JPCoin. It needs reminding that James Dimon, the CEO of JP Morgan Chase had initially said that cryptocurrencies were a fraud but he later regretted making that statement. Other mainstream firms in the financial world are offering custodian services or online trading platforms, changing the nature of investment in crypto currencies.

Although trading volumes are nowhere near the high of 2017, the market structure has changed completely (there are less of speculators now and more of investors) and this bodes well for the stability of the asset. Benefits of the blockchain technology that drives the cryptocurrencies are being widely and increasingly recognized all over the world. If a worldwide standard is developed and financial regulators shed their opposition, the asset class may still emerge as the currency of the future.