There's been a lot of fud spreading around regarding the ban of Bitcoin in India. India has been one of the major players in the Cryptosphere. During the recent budget announcement, Arun Jaitley mentioned that its illegal to use Bitcoin as a mode of transaction, following which media interpreted the same in a wrong way and published as if Bitcoin is further banned in India. However, Arun Jaitley(Finance Minister of India) himself cleared the confusion and mentioned that Bitcoin trading still legal, and hinted to be cautious as the risk is high due to massive volatility (basically not for the faint hearted).
Bitcoin Gears up for Supreme Court Hearing on July 5th:
RBI has called for the BAN of all virtual cryptocurrencies quoting all the drawbacks of its usage for the economy. Such a huge country like India, where it's not easy to regulate cryptocurrencies, RBI caution is understandable.
What could be the outcomes on 5th of July?
Japan, South Korea, and China have already imposed several regulations and bans on Crypto Currencies. The Asian market has been vital in the growth of cryptocurrencies. Among which India is a major player when we look at the volumes. Here we are outlining some outcomes of the Supreme Court hearing and you need to take precautions accordingly.
A major crackdown of all Crypto Currencies:
It's quite possible for the Supreme Court will crack down all the cryptocurrencies including Bitcoin until they find a feasible way to regulate it. Currently, there aren't any feasible ways to regulate it, since the transactions are completely anonymous on the blockchain - even though the ledger is public.
If this happens, we should see a huge market fluctuation and Bitcoin price might even drop to $2000, lowest of all time in the past 1 year. Whoever is worried about this move, should sell off their crypto holdings immediately. However, if this crackdown doesn't happen it will lead to a major break above $10,000.
A complete ban on ICO:
Initial Coin Offering has been a boom for more than a year. However, by this time we all know that only 10% of the ICOS are genuine and rest are all scams. Since there is no regulatory board involved, there's been a lot of misuse of the funds that have been raised via ICO's.
It's been quite easy for people to raise money by some ICO's without the actual product. Out of which already 81% of the ICO founders vanished with the capital raised. Currently, there's been a lot of mistrust in the community when it comes to ICO. So, the ban of ICO's will be a wise move even for the crypto community.
Source: https://cryptoorders.com/articles/recent-investigation-shows-81-icos-scams/
If you are a long-term crypto holder, it is advised to move all your altcoin holdings to Bitcoin. Because when the market downfall happens, the first currencies that will lose their share are the altcoins.
Regulating Crypto Currencies - Treating Bitcoin and other Crypto Currencies as Commoddities:
In a hearing in the month of March, Federal Court ruled that bitcoin and other cryptocurrencies as commodities. In such a case we should see a market movement in the upward direction. However, this is not entirely a good news but its better than a complete ban on cryptocurrencies. Upon Crypto Currencies being treated as commodities, there are few other regulations involved for traders.
The Flip Side
Regardless of the hearing, Crypto is here to stay forever in some form. There's no stopping to it. Even though Bitcoin is used for all types of malicious activity on Dark Web, it has many long-term benefits.
Bitcoin cannot be Banned
How can a government ban something which cannot be banned?
Blockchain technology is completely decentralized and it exists as long as there are people who use Bitcoin as a mode of transaction. The growth will be slowed down by this decision, but in long-term, it will grow exponentially once the circulating supply has reached its threshold limit.
Bitcoin is driven by its community. The crypto community is quite strong and day by day its adaptation is growing. Most of the Crypto users are in the age group of 25-34 years, and they will keep using it.
Long term players know its HODL all the way and most importantly when there's a dip, its a one-time massive buying opportunity.
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