oppn parties Cryptocurrencies: Making A Comeback

News Snippets

  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • BJD leader and former Odisha CM Naveen Patnaik said that the criticism of his aide V K Pandian is "regrettable"
  • As more than 20 BJP ministers lost in the recent elections, the new Union cabinet will have many new faces from the party
  • Congress Working committee asks Rahul Gandhi to take up the position of Leader of Opposition in Lok Sabha. Gandhi says he will consider the request
  • RBI governor Shaktikanta Das said that gold was shifted to India as the quantum of RBI gold abroad had increased due to recent purchases
  • Delhi HC rules that submitting photographic evidence of adultery will not be enough, they will have to be proved as authentic in the age of deepfakes
  • A four-member panel will review NEET-UG results of 1563 candidates to check if they were given extra marks for exam time loss
  • Mamata Banerjee says her party will not join Modi's oath-taking ceremony. Also says INDIA bloc might stake claim to form government later
  • K C Tyagi of the JD(U) dropped a bombshell when he said that Nitish Kumar was offered the post of prime minister for switching sides. Opposition leaders rubbished the claim
  • This May was India's hottest month in 36 years says IMD
  • T20 WC: India take on Pakistan today. Telecast to begin at 8pm IST
  • T20 WC: Afghanistan stun New Zealand and Bangladesh win against Sri Lanka
  • T20 World Cup: Australia beat England by 36 runs. This spoils England's chances of making the playoffs as they have lost both their matches till now
  • Heat wave continues in the country as monsoon moves slow
G7 commits to promote India-Europe corridor
oppn parties
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.