oppn parties Cryptocurrencies: Making A Comeback

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  • EMI's set to rise after the RBI hikes key policy rate
  • Calcutta HC says that the right to privacy does not end with the death of a person
  • Supreme Court says that a delayed order of preventive detention makes it invalid
  • Shashi Tharoor posts an erronous map of India in his manifesto, rectifies the error after criticism
  • Sonia Gandhi to take a call on who will be Rajasthan chief minister
  • Mallikarujun Kharge to be the new candidate to oppose Shashi Tharoor in the Congress presidential elections
  • RBI says that the September inflation rate may be higher than 7%
  • RBI hikes key rates by 50bps, downwardly revises FY23 growth rate to 7% from 7.2% earlier
  • Stocks recover well on Friday: Sensex gains 1016 points to0 57426 and Nifty 276 points to 17094
  • Mirabai Chanu wins gold easily at the National Games
  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
RBI hikes key rates by 50bps, stocks jump and recover 50% of the losses incurred in the last few session
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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.