Our Two Bits on Cryptocurrencies
They say that to understand the situation better from the other person's perspective and truly understand what they are going through! one needs to put themselves in other person's shoes.Today we would be discussing what an Indian crypto trader should do who has invested into many cryptocurrencies and envisions cryptocurrency as an alternative to fiat currencies.
For all those facing difficulties in wearing the shoes since most of us aren't cognizant about the functioning of the cryptocurrency, we are here for you! Cryptocurrency is like a digital asset which is encrypted, secured and stored. Even though it is digital and intangible it is still considered as an asset because if you sell it off you will receive money in return just like any other physical asset. A cryptocurrency works as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership and thus making it nearly impossible to counterfeit or double spend. In order to construct a tall building ,we would require an efficient base! In the case of cryptocurrencies, this efficient base is provided by the blockchain technology. In a nutshell blockchain technology is just like a ledger where all the transactions are being recorded in a proper and feasible manner. Blockchain technology is so efficient that most of the banks have already adopted this system in order to maintain a smooth and secured record of transactions. Now, let's talk about the genius, the creator of bitcoin Satoshi Nakamoto. An interesting fact is, a person named Satoshi Nakamoto never existed in the real world! It is believed that Satoshi Nakamoto is just a pseudonymous name used by the creator or the creators. So basically, nobody on earth knows who created bitcoin!
We think the information provided till now is sufficient enough for you to slip your heel smoothly into the shoe and If you still feel uncomfortable don't worry you will eventually get the hang of it! So, we hope you all have tied your shoelaces firmly since we are running back in time to the year 2010. In this year the first bitcoin transaction was conducted where-in a user swapped 10000 bitcoins of 0.0008 dollars for two pizzas. This transaction only generated a minute spike in the price of bitcoin but who would have imagined that this small spike will eventually turn so big that it would make the price of bitcoin reach the sky! Now, let's run back to the present i.e. the year 2020. The bitcoin price today is about 9087 dollars, if that guy would have held on those bitcoins he would have been a billionaire by now!
Now, let's begin our journey as an Indian crypto trader. Just like any other Indian cryptocurrency traders, you saw bitcoins and cryptocurrencies in the year 2012 as the future and started investing and trading it. You envisioned cryptocurrencies as an alternative to fiat currencies because cryptocurrencies are not regulated by a single person that is not by a single entity like the central bank or the government but it is generated, managed and regulated by each and every person who holds it. So, by seeing its decentralized nature you invested in it. Due to all these features, you saw the potential cryptocurrencies held and thus you didn't withdraw your investment from the very beginning. Now in the year 2018 since you were good at investing and bitcoin's demand has also witnessed a spike in the past few years, your portfolio tripled, you would have generated a hefty profit if you would have sold your coins but you didn't since you speculated that the price will surge even higher. When all the cards were being played in your favour suddenly on 6th April 2018 RBI issued a circular saying that it is virtually banning all the cryptocurrency tradings and all the entities regulating it shall stop immediately!
Well, we would just like to tell you that due to this statement you would lose real money, We would like to tell you that if you are feeling sad or depressed or even having a panic attack then you are not the only one, there are more 50 lakh Indians having the same feelings just by thinking about their portfolios and the money they might lose. Many of the budding cryptocurrency exchange platforms started shifting from India to a place where there were more friendly rules. When everyone thought that India would end up being the next China by officially banning all the cryptocurrencies, a ray of hope was delivered by the Supreme Court on 4th March 2020 by overturning the decision imposed by RBI. Well, we must admit that the Supreme Court efficiently speculated the future and truly understood the revolution the cryptocurrencies could generate! We hope, the Supreme Court has the same positive approach towards considering cryptocurrencies as a legal tender.
Speaking for those who don't know what a legal tender is, legal tender means you will be able to make payments in restaurants through bitcoins, you will be able to pay your taxes through bitcoins, in a nutshell, you will be legally allowed to pay your debt through bitcoins. After the RBI statement, everybody had a negative view or nearly lost hope in the Indian Crypto Market, but the Supreme Court's statement filled everybody's heart's with joy and amazement. Investors regained the lost hope and thought of providing an economic boost to the Indian Crypto Market. Wazirx and Binance are the first ones to contribute, they plan to invest 50 million dollars exclusively in the Indian blockchain and crypto ecosystem, it is speculated that more investments are just on the way!
After reading if you think that the future of cryptocurrency is very bright in India then let us shed some light on the fact that the decision is still on a neutral perspective, the government isn't denying either agreeing on any of the parts and what if we told you that there is a rumor in the market that the government may impose a permanent ban! Well, if you too have heard this rumor then don't worry this is just like any other fake rumor that we all encounter at least once in our lifetime. If you still believe that this rumor may turn out to be true, well we will prove you wrong once again! But before that, we would like to talk about the impact this fake news created on the Indian Crypto Market. We all are cognizant that news always plays a crucial role in the market, we all know some instances where just small fake news has disrupted the entire market. You all must be wondering that this fake rumor having a potential of turning out to be true must have created a sharp drop in the market!
Well, you guys are not entirely wrong the market took a plunge but eventually after a few days, it regained back since the investors were well aware of the fact that the Indian Government too can foresee the positive side of cryptocurrency and just like any other developing country it will try adopting cryptocurrency as fast as possible. Some of the big investors or we should rather say the CEO's of the top Indian cryptocurrency exchanges firmly believe that the rumor is totally false, and it would never turn true. These CEO's say that they are crystal clear about their statements!
The statements we would be presenting are from the CEO's of the top Indian Crypto exchange platforms, these people will share their views on how the market was impacted by the rumor on their exchange and how it will be difficult for the government to implement a ban! So, let's begin with Unocoin's CEO Sathvik Vishwanath, Sathvik firmly believes that a blanket ban is unlikely. According to him, the Supreme Court heard all the aspects of crypto within India and abroad and after hearing all that the Supreme Court finally took a stance to support the industry. He also believes that more industry players will be invited to intervene in the process of regulating crypto in India. Wazirx CEO Nischal Shetty strongly believes that the Indian Government will not ban cryptocurrency, he positively believes that India won't take a regressive stance by putting a blanket ban and will try following the steps of the developing countries like Japan, USA, UK, Australia and the other nations who have embraced crypto! The Giottus co-founder too has a similar point of view like the Wazirx CEO and he too believes that it would be difficult for India to have a feasible plan in banning the cryptocurrency since none of the developing nations has banned them. The Coinswitch's chief business officer Sharon Nair says that the news of the crypto ban in India isn't new and such rumours will keep on roaming around until the Indian Government positively adopts the cryptocurrency. Now, let's hear from India's largest crypto exchange platform Zebpay!
Zebpay, when RBI's decision rolled out it, thought of setting its headquarters in some other country where there were lesser complex rules but after the Supreme Court decision, Zebpay too could see the bright side of the Indian Crypto System and has returned back to India. It has a vision of becoming the most trusted and the most innovative blockchain services in the world. In the coming months, Zebpay plans to launch crypto-crypto trading allowing the users to trade in pairs like ETH-BTC and stablecoins with instant buy/sell. These policies and plans truly convey that Zebpay can efficiently speculate the future in the Indian Crypto Market. Well, we hope hearing from these top players would have set your heart's at peace as an Indian crypto trader.
When it was questioned to the bitcoin creators that, what was the need for creating such a decentralised asset? The answer was pretty clear, the financial crisis of 2007 inspired them to create such a decentralised currency since the mistake done by the banks generated such a huge vandalising crash due to which the common people had to suffer a lot. In the end, we would just like to say that sooner or later we would soon have to adopt this mesmerizing piece of technology. It doesn't matter if cryptocurrencies replace the fiat currencies or not, but it would surely matter if they are not provided with a decent chance of expressing their potential. Conclusion being, if we keep a resisting attitude towards everything we encounter, and we don't try adapting to the change then it is believed that those embracing the change will eventually move ahead crushing you!
Author: Meet Prajapati