Last year had been great for cryptocurrencies, especially Bitcoin that has recently hit USD 20,000 last December before crashing down to USD 11,000 and then reaching back the USD 13,500-15,000 mark currently. Presently, the price of Bitcoin has reached USD 11,381 due to the pressure of regulations from South Korea and China and because of the rumors that government may ban cryptocurrencies.
Nonetheless, not a single day passes by when one doesn’t hear something about cryptocurrencies in mainstream media. Bitcoin cynic believes that it is just overhyped and the bubble is slowly popping while its supporters believe that it is one of the major innovations in a long time and its downfall is just a temporary delay.
The recent introduction of Bitcoin at Chloe Global market and Chicago Mercantile exchange has surely made it easy for the Hedge funds and capital to get into the markets and bet against the Bitcoin. Crucially, a path has been created to smash the chasm and move in the direction of mainstream adoption.
Are we going to see cryptocurrencies and Bitcoin as a part of retail investors’ portfolios on large scale? Whether it will happen and if it happens, how fast it happens is anyone’s guess.
The Future of Cryptocurrencies in India
In regards to Blockchain, India can’t be ignored. It is an awesome nation with more than a large number of people who experienced demonetization. This is the time that large numbers of Indians take advantage of Bitcoin and proceed to be indebted. This spike drove technically minded people to buy Bitcoins as well as achieve something with the Blockchain itself.
Calling bitcoins, next great thing since computing and internet themselves are main statements to make. Cryptocurrencies and Bitcoin may not be much threat to currencies today.
In India, there are no regulations related to cryptocurrencies till now. It is also not possible that the country will bring its own cryptocurrency. Also, court and government stands are unclear on this. Nobody is sure what the final situation will be. It will become a chance to portray the nation as fast forward and necessary.
Observers have predicted that India’s government will regulate Bitcoin in parts. India’s Bitcoin industry is eagerly waiting for it as they know that government acceptance will provide cryptocurrency the backing it requires. In fact, Bitcoin industry in India has tried to popularize Bitcoin with strategies like requesting user identification, security checks, government-verified address documents, Aadhaar IDs, Permanent Account Numbers (PAN) and sometimes checking bank details.
The future of cryptocurrencies
Some of the limitations which are faced by cryptocurrencies are the fact that digital fortune may get erased by a computer crash or a virtual vault that may be raided by a hacker. It may be overcome in time through technological advances. What will be more difficult to conquer is the basic contradiction that afflicts cryptocurrencies. The more they popular they get, more government scrutiny and regulation they are likely to attract, which affects the fundamental premise of their existence.
While merchants accepting cryptocurrencies have increased, they are still in minority. For cryptocurrencies to become widely used, they need to get widespread acceptance in customers. However, it is relatively difficult compared to standard currency will affect most people, except the ones who are technologically skilled.
Cryptocurrency that needs to become an integral part of the mainstream financial system may need to satisfy a wide variety of criteria. It would need to be mathematically difficult but easy for customers to understand, localized but with adequate protection and consumer safeguards and save user obscurity without being a channel for tax evasion, illegally gotten money and other abominable activities.
Since these are forbidding criteria to fulfill, is it possible that the popular cryptocurrency in some years that could have features that fall in the range of highly regulated fiat currencies and present day’s cryptocurrencies? While the possibility looks distant, there is very less doubt that as Bitcoin is a leading cryptocurrency in dealing with the challenges it will face may determine the fortune of other cryptocurrencies in upcoming years.
Controversy of Tether Coin
Tether is a cryptocurrency and is claimed to be fixed as per the U.S. dollar. It is much more stable as compared to digital coins having high price fluctuations. It was created in 2015 and as per theories; a person will pay $1 per tether coin.
Presently, there are 2.2 billion tether coins being circulated, as per data from a website that tracks cryptocurrency prices.
A lot of concerns have been raised that Tether is being raised by people owning Bitfinex exchange. Critics argue that a close relationship like this should not be created.
There are even deeper issues than this. It is being feared that Tether Limited doesn’t have enough U.S. dollars to back up the digital coins to be circulated. The rumors have been circulating for last few months.
Tether has been releasing coins in the market in January; Tether has released 850 million digital tokens. The company has been increasing number of coins over the past month; this has coincided with the high record seen in cryptocurrency prices, causing critics to suggest that price manipulation is going on.
It is being suspected that Tether is timing the release of new Tethers to coincide with the drops in Bitcoin prices and then using Tethers to get Bitcoin. It is feared that these purchases are artificially inflating Bitcoin prices.
If traders will lose faith in tether they would trigger the crypto version of the bank run. Tether helps to stabilize cryptocurrency exchanges in different ways so its collapse will cause an imbalance of few exchanges, wiping off investments worth billions of dollars overnight and damaging most of the public’s interest in cryptocurrency.
Should You Invest in Cryptocurrencies?
If you are considering investment in cryptocurrencies, it may be great to treat your investment in a similar manner you will treat any other high-value venture. In other words, you have to realize that you are facing the risk of losing most of your investment, if not all. As stated before, cryptocurrency holds no value other than what a buyer wishes to pay for it. This will make it susceptible to high price surges; this, in turn, will enhance the risk of loss for an investor. Bitcoin rose from $130 to $260 within 6 hours on April 11, 2013. If you can’t accept the volatility, search somewhere else for investments which will suit you better. While opinion is divided into its benefits of Bitcoin as an investment- supporters imply to its growing usage and limited supply as value drivers, while critics consider it as another conjectural bubble-this is a debate that any conservative investor will avoid.
The emergence of Bitcoin has started a debate about its future and as well as other cryptocurrencies. Despite the Bitcoin’s recent issue, its success has inspired the creation of other cryptocurrencies like Ripple, Mintchip, and Litecoin. A cryptocurrency will become one of the main financial systems that will satisfy a wide range of criteria. While this may appear distant; there is less doubt that Bitcoin’s failure or success in dealing with its challenges may affect the fortunes of other cryptocurrencies in upcoming years.
Cryptocurrency will be both evil and good like everything else. If you are working on Crypto then you are creating tomorrow’s world but don’t expect it to happen overnight.
Inertia has its own way and slows down even the fastest rockets.
You just enjoy the ride while we boldly go where no one has ever gone.