Current Crypto Market Scenario:
With advancements in technology all over the globe, every sector is adopting new techniques that are revolutionizing how things are done. People are now looking forward to new ways of engaging in trade and business. Relating to the currency and business model, the world is witnessing a boom in cryptocurrency and bitcoins. In December last year, Bitcoin value mounted an all-time high of $ 19,780 and thus emerging as the fastest growing asset in the recent times.
However, this market is one with quite ambiguity. Due to a relatively less number of people dealing in this, the market is open for easy manipulation. The first major setback for this market was China imposing a ban on the cryptocurrency. But soon after that Japan took over. The Chinese traders have mostly moved to Japan and now Japan has overtaken China in terms of crypto trading.
Although the Blockchain technology has tremendous potential to standardize global markets with a common trading currency, the risk associated with it is equally high. A study by the Cambridge Centre for Alternative Finance has found that the world currently has more than 3mn active cryptocurrency users like Bitcoin. Bitcoin is, by far, the most famous of these cryptocurrencies. It is also among the oldest, having first emerged in 2009. The top five biggest currencies—Ethereum, Ripple, Litecoin, Dash, and Monero—now account for 20 percent of the market.
The major concern regarding crypto world is the legalization of cryptocurrency across major economies in the world. While China has banned it, Japan has happily accepted to legalize. While India still is in the race to pass a law to legalize, Kenya sees over half of the national GDP being operated by a digital currency. It is a slow and steady process, but one can expect to see the crypto world take over in the years to come.
Indian Crypto Market:
While it is already booming across the globe, the cryptocurrency revolution is beginning in India. According to stats as of June 2017, India accounted for more than 11 per cent of the global cryptocurrency trade. Right from the possible proposal to legalize bitcoins, other cryptocurrencies and ICOs, India has engaged itself in the cryptocurrency market for some time now.
With a general negative notion of high risk about the crypto world, Bitcoin exchanges operating in India have done a fairly good job of alleviating the negative sentiments of people. Also reported in an article on CXO Today, the Indian government was considering a proposal to introduce its cryptocurrency similar to Bitcoins. As per sources, the proposal was discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful. They also added that the government might be naming its cryptocurrency ‘Lakshmi Coin’.
Although the government’s stand states that the cryptocurrency is neither legal nor illegal in the current scenario, the discussion on whether crypto-currencies should be banned or regulated has been on for some time. However, India’s Finance Minister Arun Jaitley recently claimed that the country does not recognise cryptocurrency as legal tender. But he left some ambiguity by stating that “Recommendations are being worked at” and that it isn’t legal only as of now. With virtual currency gaining traction among investors and the value of Bitcoin seeing a meteoric rise, one can expect that it won’t be long until India follows suit with the crypto world.
Picture Credits : express.co.uk