Bitcoin bubble burst... huge downfall in price of the king of crypto, BITCOIN. What's the matter? will bitcoin never rise?
So this is the FUD as the traders say.
FUD is:
F - Fear
U - Uncertainity
D - Doubt
The fear of the investment to become zero overnight, is the main fear of a new-comer in the cryptocurrency world !!
Today, Indian finance minister Mr. Arun Jaitley has said in his Budget speech that the currency is illegal and the government is not going to to recognise it.
With Bitcoin making waves all over the world in the past few months, the government was expected to provide clarity on cryptocurrencies.
The new, itself, gave rise to panic selling by the people and hence and price of bitcoin moved to as low as $9500.
The rising craze for bitcoin, a cryptocurrency that has rocketed to shocking highs, has already come under the government's lens.
Bitcoin can be an easy way to evade tax or snare unsuspecting small investors in ponzi schemes. The government has already begun a crackdown on illegal uses of this unregulated virtual currency.
It's a matter of concern that most of the Indian traders who have entered the market recently (2016-2018) had faced a lot of fraudulent mishappenings which made them loose everything they had. Several ponzi schemes had been made on the idea of bitcoins. Some people in India created fake IDs of exchanges and forced the users to reveal their informations of their person accounts to them.
Moreover the anonymous dealings of bitcoins served for the illegal activities in India. On November, 2016 the prime minister of India decided to DEMONETISE the 500 and 1000 INR currency notes to curb the BLACK MONEY or the non-taxable incomes in India to end corruption. And it's reported that many such people having a hold of non-taxable money, invested in Bitcoins and hence the price of bitcoin reached the moon very soon !!
“The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system,” Jaitley said.
The bitcoin bubble for India might end, as the beginners fear....
But the point is something different !!
Indian finance minister does not speak about TRADING of cryptocurrencies.
I can claim that my jacket of GUCCI is not a legal tender, right?? Well, it's a commodity. And so is bitcoin.
Bitcoin had never been a legal tender in India ever. And Indian finance minister just confirmed it again. It's nothing new. It's no shock !! The cryptocurrency is not going to end.
Bitcoin is based on the blockchain technology. And supporting blockchain is supporting bitcoins.
The Government will explore use of Blockchain technology - which is the backbone of Bitcoin and many other crypto currencies - proactively for ushering in digital economy, the Finance Minister said in the Budget 2018 speech.
If a government of a country starts backing up the Blockchain technology, there will surely be growth in the technology very soon. The growth of blockchain will lead to the rise in the price of bitcoins and other cryptos too.
The finance minister of India did not discourage trading of cryptos. There is a strong message for the scammers who misuse the world of cryptocurrencies !! Indian government will check the illegal activties going on in the name of bitcoin in India.
Now, as the price is down, the time is suitable for the traders to buy bitcoins and increase the position in bitcoins.
BUY THE DIP !!
This should be the prime concern for a trader. Due to the growth of blockchain technology in the near future, the price of bitcoins will rise and therefore no need to sell in losses.
If you are the one who bought bitcoins at 14,00,000 INR then my message to you is HOLD ON !!
Don't sell at a loss. Hold on to cryptocurrency !! Hold on to Bitcoin !!
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