January was the scene of a lot of FUD on the market. FUD stands for Fear, Uncertainty and Doubt (Fear, Uncertainty and Doubt). FUD is characterized by panic in the markets caused by often unjustified negative rumors.
FUD is particularly stressed in the cryptos market by the fact that many private investors have weak hands. The golden rule for any investment "Buy Low, Sell High". Rather simple no? Yet most people do the opposite: buy during a hype period to sell during panic.
Recurring rumors concern the implementation of government measures. Let's take a quick tour of the world and analyze the different approaches.
Finance Minister Arun Jaitley passes the Indian Parliament and delivers a budget speech. Here is the passage of his speech which caused the panic of the markets:
In analyzing the declaration, we note that the government's goal is to prevent the use of cryptocurrencies as part of illegal activities. He also says that Bitcoin has no legal tender, which is the case almost everywhere in the world.
Nowhere is there a bitcoin ban, or a ban of exchange platforms. He ends on a positive note saying that the government will study the use of the blockchain. This did not stop our journalist friends from the very selective view of shouting that Bitcoin was now illegal in India and that it would be eliminated, causing a significant drop in the markets.
Finally, even in the case of a future ban, it is worth remembering that even if India is definitely a future market for cryptocurrencies, the size of the market is relatively small.
