With the elusive cryptocurrency Bitcoin’s prices crashing below $7,000-mark, global financial services major Bank of America says that the greatest bubble in history is popping. Bitcoin shed more than 6 percent over two hours yesterday, to plunge below $7,000 even as the April tax-filing deadline gets nearer. Bitcoin was trading at $6,730 on Tuesday afternoon. According to analysts at Bank of America Corp, the cryptocurrency is tracking the downfalls of the other massive asset-price bubbles in history less than one year out from its record. Notably, Bitcoin has fallen by more than 65 percent since from its all-time high at $19,511 in December-17, according to a Bloomberg report.
Back home, the Reserve Bank of India has taken stringent measures against dealing in cryptocurrencies, and has instructed all banks to wind-up all dealings with virtual currency players in the next three months. RBI’s announcement has led to a reversal of fortunes for Bitcoin, which is trading 10% below prices in international exchanges. According to data from leading Indian exchange Koinex, Bitcoin was trading at Rs 4.8 lakh on April 5th. On Tuesday afternoon, the price had fallen to Rs 4.35 lakh.
Earlier, Finance Minister Arun Jaitley had made the government’s stand on Bitcoin very clear. “The government does not consider cryptocurrencies as legal tender or coin and will take all measures to eliminate use of these Cryptoassets in financing illegitimate activities, or as part of the payment system,” FM Jaitley said in February this year.
Top investors including Warren Buffett and Jim Rogers have shunned the Bitcoin as having no value. Warren Buffett told marketwatch in October-17, “You can’t value bitcoin because it’s not a value-producing asset,” adding it’s a “real bubble in that sort of thing.”
Noted commodities-guru Jim Rogers too said that Bitcoin appears bubblish. “It looks bubblish when you see the kind of price we see in bitcoins. I certainly don’t know which one will come out on top, or if anyone comes out on top. But, I don’t own any,” Rogers told in an interview to Kitco news. Sharing his thoughts on cryptocurrencies,ace investor Rakesh Jhunjhunwala too shunned Bitcoins saying it will be known as madness of this century. In an interview to Reuters, he said, “Cryptocurrency is the new tulip.”