A cryptocurrency enthusiast, once said rightfully, “Bitcoin will do to banks what email did to the postal industry.” Echoing this statement is Israel’s Prime Minister Benjamin Netanyahu, speaking of cryptocurrency regulations, exchanges and cryptocurrency themselves,
“Is the fate of banks that they will eventually disappear? Yes. The answer is Yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark!”
By the turn of this year, Bitcoin is valued at at $788, is all set to exit at $20K, with almost 25-fold price surge. This virtual currency, which is currently trading at $17,788 has shown its potential as an investment option. Moreover, the Bitcoin derivatives and Bitcoin futures are for real. The Income Tax surveys and raids surrounding Bitcoin is also for real. The big investment funds being invested and raised by the VCs are also real.
Washington Post has warned the potential investors that no matter how much Bitcoin appreciates, it will always bourn with it a higher risk than traditional investment options. However, the popularity of BItcoin cannot be undermined even in India. The testimony to it is the survey of the Indian Income Tax (IT) department with nine leading cryptocurrencies that asks for the details of significant Bitcoin buyers.
The demonetization in India was characterized by the freezing of 200K bank accounts for suspected ‘unusual’ transactions, and this may be repeated for Bitcoin traders and exchanges too. For example, one cryptocurrency exchange, BTCXIndia was shut down on May 8, 2015, after Kotak-Mahindra bank pulled the plug on it. However, the exchange resumed operations after opting for Andhra bank on July 5, 2017.
Clearly, a war is waged by the financial authorities around the world with the cryptocurrency traders, investors and the Bitcoin enthusiasts. However, Bitcoin would be hard to stop. The Bitcoin futures have also appeared to gain momentum. Cboe launched Bitcoin futures last week that recorded almost 8 percent price surge in its first week.