This year has been the most unnerving year, specially for the bitcoin enthusiasts who has seen its price tumble from an all time high of almost $20,000 to almost one third of this price currently in the market.
As if the struggle already wasn’t enough and cryptocurrency traders and enthusiasts were subjected to ban on the cryptocurrency dealings by the RBI. In the wake of which, several cryptocurrency firms either flew overseas to continue their operations with smoothness, while others signed a petition against RBI in the court.
However, despite so much unrest, there still hasn’t been enough clarity of the scenario on cryptocurrencies in India as the nest date schedule in the court is due for July.
According to the latest news report by NDTV, here are the top 10 things about the rise and fall of cryptocurrencies in India.
1. In its first policy statement of fiscal year 2018-19, the Reserve Bank of India (RBI) on April 5 highlighted that the commercial banks should stop dealing with the entities that deal in digital currencies, such as bitcoins, ethereum, among others.
After the RBI ban, the virtual currency exchanges in India have started running advisories that restrain people from using Indian currency to buy bitcoins. For instance, Zebpay says: If you are holding any rupees, or depositing any rupees in Zebpay, there could soon come a time when we may not be able to honour withdrawal requests. Please continue only if you understand this risk.
2. In February 2018, the income tax department, in a bid to tax the cryptocurrency transactions, issued several lakh notices to those who put money in bitcoins.
3. The Reserve Bank of India (RBI) has started cautioning its users and traders to refrain from digital currencies and their dealings. The first warning was issued in December 2013, the next one in February 2017 while the latest one in December last year. The RBI released a circular in December 2017 saying,
“Users, holders and traders of Virtual Currencies (VCs) including Bitcoins are cautioned regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs,”
4. The RBI’s ban in April this year on cryptocurrencies wwere challenged in the Supreme Court, which is scheduled to hear the matter on July 20.
Read More: Petition Filed in SC Against RBI Again for Crypto Ban, This Time by Internet and Mobile Authority of India (IAMAI)
5. Frauds and Ponzi schemes involving bitcoins brought bad name to the cryptocurrencies. Even Government of India’s finance ministry issued a statement stating: “Consumers need to be extremely cautious so as to avoid getting trapped in such Ponzi schemes.”
6. Not only government, even the private sector companies including Facebook, Google and Microsoft banned the cryptocurrency advertisements to stay away from the cyrptucurrencies.
7. From the highest level of $19,500 in December 2017, the price of bitcoin fell to $6450 in June this year, shaving off more than two-third of the value. In 2017, however, the bitcoin prices had demonstrated over 1400 per cent growth.
8. The bitcoin prices were on an upward flight last year and now they are in a free fall. Last year, there was a sentiment whether the share will sustain the level of 19,000 and now, there is a growing consensus as to whether the new level of $6,000 plus will be sustained.
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9. Despite criticism against bitcoins, the government has supported the idea of blockchain technology that created bitcoins and other digital coins. During the Budget Speech, Union finance minister Arun Jaitley said that the government will look at the utilisation of Blockchain. Reserve Bank of India (RBI) has set up an inter-departmental committee to explore feasibility and desirability of starting own cryptocurrencies in future.
10. In the past three months, bitcoin prices have fallen from $8,290 on March 15 to $6,340 on June 14, as per the details on Coinmarketcap.