The Supreme Court had lifted RBI’s ban on banks and financial institutions from offering services to businesses or individuals dealing in digital currencies.
Bitcoin has been on the brink again in the past few days, hitting a brand new all-time high of $ 24,200 per bitcoin after starting a rally of $ 17,637 on Dec. 11. The largest cryptocurrency – bitcoin – surged 37 percent on day Saturday before falling back slightly to $ 23,481 as of Sunday night, according to US largest cryptocurrency exchange Coinbase, reportedly sold at $ 7.7 billion, which had announced earlier this week filing for its IPO. However, in the midst of this leap ever, Coinbase CEO and Co-Founder Brian Armstrong has warned crypto investors of the inherent ‘risk’ in the asset class.
“We cannot stress enough how important it is to understand that investing in crypto is not without risk. For one, crypto can be a volatile asset class – often more so than the types of traditional financial instruments that most investors are used to. For example, this means the market can move in both directions much faster than equity markets, ”Armstrong said in a company blog post on Thursday. According to blockchain analytics firm Chainalysis, as reported by CNBC, investors who bought at least 1,000 bitcoin worth about $ 23 million at Friday’s price and had established an account for less than a year, led to significant demand since September.
“We are seeing more and more BTC (bitcoin) leaving exchanges around the world, a 19 per cent more transfer than a price increase in 2017, which is a sign that investors are holding BTC as long-term investments. With more players joining the bandwagon we will notice more price rises in the coming days, ”said Vikram Subburaj, Co-founder and CEO of Giottus Cryptocurrency Exchange of Chennai.
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According to Philip Gradwell, chief economist at Chainalysis, the price of bitcoin had more than doubled from the $ 10,000 level in the time new investors improved their buying spree. The new demand helped boost the cryptocurrency rally to a record high. Armstrong warned, however, “investors who may be focusing on short-term speculation and encouraging customers to seek resources and consult financial advisers to better understand the risks associated with investing in cryptocurrencies.”
In India, the Supreme Court in March lifted an RBI ban on banks and financial institutions from offering services to businesses or individuals dealing in digital currencies. An RBI circular had earlier said that cryptocurrency related entities such as virtual currencies, crypto assets, etc., were illegal and had asked banks, payment companies to withdraw support. “I think the coming year will see a significant increase for bitcoin. With recent announcements by MassMutual, Fidelity, Microstrategy, and Square, we are seeing institutional capital of up to hundreds of millions of dollars enter the picture. Along with broader awareness and education, it is easy to predict that the price of bitcoin will rise 100 percent in 2021. That’s why now is the time to enter bitcoin, “said Rahul Pagidipati, CEO, ZebPay.
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