Even as the Supreme Court lifted the ban on trading in cryptocurrencies such as Bitcoin, investors are now evaluating how to move forward. While crypto-enthusiasts are hailing it as a positive judgment, traditional market investors are raising concerns. “The RBI was right in banning Cryptocurrencies. They might not have put their stand clearly in front of the Supreme Court. It’s effectively a form of gambling as there is no intrinsic value in Cryptocurrencies”, investment advisor Sandip Sabharwal told Financial Express Online. In April 2018, the RBI had ordered financial institutions to break off all ties with individuals or businesses dealing in virtual currency such as Bitcoin within three months. The ban led to plummeting trade volumes and exchanges shutting their businesses.
“Today’s a historic day for the entire Indian crypto ecosystem. #IndiaWantsCrypto has won! This positive judgment will open doors to massive crypto adoption in India. It proves that we can now innovate, and the entire country can participate in the Blockchain revolution. With over 1 Billion population, the Indian market is a sleeping giant. I’m confident that this judgment will have a positive impact on the global crypto ecosystem”, Nischal Shetty, Founder & CEO, WazirX, said.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. The major cryptocurrencies include Bitcoin, Ethereum and Ripple. Since October 2019, bitcoin — the most popular virtual currency globally — hit $10,000 mark against the US dollar for the first time earlier this year. Bitcoin gained three and a half times in just 35 days in late 2017 to reach nearly $20,000. However, it, later on, plunged 70 per cent in seven weeks.