Tag: Earning

‘I will never buy bitcoins in my life,’ the ace investor said
The regulators must ban cryptocurrencies in India, he added

Asked whether you will buy bitcoins, big bull Rakesh Jhunjhunwala answered, “I won’t buy it for even $5.” In an interview with CNBC International TV, the ace investor said, “Only the sovereign has the right to create currency in the world. Tomorrow people will produce 5 lakh bitcoins, then which currency will go? Something which fluctuates 5-10% a day, can it be considered as currency?”

“If a dollar moves 1-2%, it becomes a news, but bitcoin fluctuates 10-15% every day,” Jhunjhunwala said.

On cryptocurrency trading, he said, “I think it’s speculation of the highest order.” The veteran investor added, “I am not going to buy even if the price goes up,” adding, “I don’t want to join every party in the town, so I don’t even put my minds on bitcoins.”

On fear of missing out the crypto fever, he mentioned, “There have been so many times when markets have gone up, but I stayed out. You should only go to the parties you like.”

“I will never buy bitcoins in my life,” he reiterated.

A high-level committee earlier suggested that all the private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India. The central government will take a decision on the recommendation of committee and legislative proposal, the finance minister had said.

On whether crypto trading will be banned in India, Jhunjhunwala echoed the same thought. “The power to issue currencies should only be with the state and it should be taken away from others. The biggest sovereign right is to issue currency. The regulator must ban cryptocurrencies in India,” he said.

Bitcoin tanked as much 18% on Tuesday and traded around $48,750. The selloff puts Bitcoin prices at the lowest in about two weeks.

Posted by Technical Mechzone

Synopsis
Bitcoin trimmed losses to 8% after plunging as much as 17% earlier Monday. It briefly came back below $50,000 in New York, giving up more than $8,000 in a matter of hours.

By Anchalee Worrachate and Olivia Raimonde

Elon Musk’s embrace of Bitcoin earlier this month week rocketed the cryptocurrency almost 50% higher to more than $58,000. His cold shoulder this weekend whipsawed the largest digital asset.

Bitcoin trimmed losses to 8% after plunging as much as 17% earlier Monday. It briefly came back below $50,000 in New York, giving up more than $8,000 in a matter of hours after the world’s richest man tweeted his concern that the price had risen too high too quickly.

“Whatever he (Elon) does is going to dominate the news stream,” said Ed Moya, senior market analyst at Oanda Corp The world’s largest cryptocurrency has been on a tear this month, propelled by purchases from Musk’s Tesla Inc. and institutional investors who say Bitcoin is an attractive alternative to gold and the dollar.

In February alone, Bitcoin was up more than 60%, prompting commentary that the run-up is excessive. The digital token hit a new all-time high on Sunday and came close to surpassing $59,000. It traded at around $52,782 as of 10:20 a.m. in New York. It’s widely believed that volatile weekend swings are driven by individuals trading the cryptocurrency at home. So it’s also possible that prices fell on Monday as institutional crypto traders, who follow normal business hours, responded to Musk’s Saturday tweet that Bitcoin prices “seem high.”

Meanwhile, JPMorgan Chase & Co. strategists have warned about Bitcoin’s declining liquidity. Strategist Nikolaos Panigirtzoglou wrote in a note on Friday that liquidity for the digital coin was lower than that for the S&P 500 Index and gold, meaning “even small flows can have a large price impact,” he wrote

“It should go without saying that new investors to Bitcoin should be prepared for major volatility and for prices to drop suddenly and as sharply as they have risen,” according to Neil Wilson, chief analyst at Market.

Posted by Technical Mechzone

People, traders, exchanges, and other financial systems’ participants will not be permitted to deal in cryptocurrencies with penalties proposed in the draft law for any violation by corporates as well as individuals

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is expected to be introduced soon in the ongoing Budget session (of parliament).

People, traders, exchanges, and other financial systems’ participants will not be permitted to deal in cryptocurrencies, with penalties proposed in the draft law for any violation by corporates as well as individuals, NDTV reported.
The decision was taken after an inter-ministerial panel, including representatives from the Reserve Bank of India (RBI), felt that private cryptocurrencies will pose a risk to the financial stability of the country.

The bill, which proposes a blanket ban on all private cryptocurrencies, will also lay the basis for an official digital currency with ties to the RBI, which can regulate it, the report added.

The Centre’s draft bill comes days after car manufacturer Tesla, led by billionaire Elon Musk, announced a $1.5 billion investment in Bitcoin with plans to accept the cryptocurrency from customers purchasing its electric vehicles. This drove the digital money to an all-time high.
Both the Centre and the central bank have been cautioning against digital currencies and have advised all banks and financial institutions not to deal in them.
The RBI, through a circular in April 2018, had advised all entities regulated by it not to deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling them.

In mid-2019, a government committee had suggested banning all private cryptocurrencies, with a jail term of up to 10 years as well as heavy penalties for anyone dealing in digital currencies.

However, the Supreme Court in March 2020 overturned RBI’s circular, permitting banks to handle cryptocurrency transactions from traders and exchanges.

As per the official estimates, around 7 million Indians hold cryptocurrencies worth more than $1 billion.

Posted by Technical Mechzone