Indian Government Looks to Ban Cryptocurrency Trading With New Law

India is not new when it comes to harsh and unfriendly cryptocurrency laws. Now, Bloomberg reports that the country is set to introduce a new law which will ban cryptocurrency trading within its borders.

Citing anonymous sources, the report states that India’s federal cabinet is set to discuss the bill prior to being sent to the parliament.

The report states that the Indian government will continue encouraging and supporting the growth of blockchain technology but will discourage crypto trading.

In 2018, Indian central bank instituted a ban on all crypto transactions following numerous cases of frauds prior to the sudden decision to ban about 80% of the country’s currency by Prime Minister Narendra Modi. However, the decision was rescinded in March this year after a successful filing of a suit in the Supreme Court by various crypto-based firms operating in the country.

The lifting of the ban saw almost a 450% increase in crypto trading in just two months from March. Paxful, a Bitcoin marketplace, registered a staggering 883% growth from January to May this year representing a growth from $2.2 million to about $22.1 million in revenues. Similarly, India’s largest crypto exchange WazirX registered a growth of 400% and 270% in March and April respectively.

The renewed effort to ban crypto trading comes at a time when the Indian Parliament has reopened following a prolonged break due to COVID-19 pandemic. The bill is likely to be introduced to parliament in this monsoon session which kicked off yesterday and is set to affect over 1.7 million Indians who actively trade in digital assets as well as institutions coming up with platforms to ease crypto trading.

Today’s report appears to be in tandem with June’s news where the nation’s finance ministry was reportedly urging for inter-ministerial consultations on how to ban crypto.

In the recent past, India’s federal government has been exploring possible ways of using blockchain technology to enhance service delivery in different sectors like management of land records, enhancement of pharmaceutical drugs supply chains, management of educational certificates, among others but remains adamant against crypto trading.

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Author: Joseph Kibe

Has 2020 Really Been a Bad Year for Bitcoin Amid Global Economic Turmoil?

“It’s been a disappointing year for Bitcoin,” writes Bloomberg editor, Joe Weisenthal in his Monday newsletter.

2020 continues to be a tragic year, the world struggling with the coronavirus pandemic, its economic impact, and protests worldwide. In March, COVID-19 triggered a sell-off in the global markets as investors sought the safety of cash.

Bitcoin wasn’t immune to that sell-off either and crashed as low as $3,800 on the majority of crypto exchange and $3,600 on BitMEX. But since then, the leading cryptocurrency has recovered over 135%.

But Weisenthal argues that bitcoin is making a general trend of lower highs. “Despite the extraordinary market volatility, it hasn’t surged to new heights,” he said. And this question if an economic crisis can really be a boom for bitcoin.

He also points out how bitcoin has been basically following the S&P 500 throughout this period of volatility. During the March sell-off, bitcoin’s correction with equities jumped to all-time high. Although it dwindled since then, Federal Reserve Chairman Jerome Powell’s remarks yet again fueled this correlation.

So, does it really provide diversification to a portfolio, further questions the editor. According to analyst Mati Greenspan, the correlation will only increase from here because,

“the more big money is involved, the more managers of large portfolios will see it within the context of the traditional markets and use it as a tool to hedge their investments.”

What happened to “digital gold” and “halving” narratives?

Moreover, the “extraordinary” expansion of the Fed’s balance sheet hasn’t led to inflation or currency collapse as many bitcoiners predicted so what would exactly “catalyze a Bitcoin boom?”

Historically, halving has led the bitcoin rallies but this time it “went without much impact,” said Weisenthal.

He further questions bitcoin’s “digital gold’ argument which is supposed to separate it from other cryptos in a crisis but bitcoin moved roughly in line with Ethereum this year and “did not exhibit any special safe haven properties.”

But even if we look at gold’s performance during this period, it also experienced a massive sell-off along with bitcoin and other asset deposits being a traditional safe haven asset and continues to move up and down.

Millennials ditching bitcoin?

Now, it looks like millennials have found the alternative to cryptocurrencies and getting “their thrills elsewhere.” Locked in their homes during the pandemic with stimulus money and the internet at their disposal, they have discovered the stock market via platforms like Robinhood. He said,

“To the degree that people were putting money into Bitcoin because they liked volatility and action, there’s a new competitor on the block for those dollars.”

And the competitors are bankrupt companies. In the past few weeks, these young people have taken to invest in stocks of companies filing for bankruptcy, one of which (Hertz) has gotten permission to issue its worthless stocks.

Weisenthal believes the “crisis may yet be good for Bitcoin,” but only if “we get infringements on privacy that create new demand for payments that can’t be blocked.”

The narratives may get debunked but market participants aren’t really bothered about bitcoin’s bullishness in the long term as demand for the world’s leading cryptocurrency only continues higher while its supply is limited.

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Author: AnTy

Billionaire Michael Bloomberg Ends 2020 Presidential Race, Who Is Left To Advocate For Crypto?

Michael Bloomberg, the billionaire and Presidential candidate who advocated clearer regulations for crypto, has exited the November 2020 Presidential election race.

As reported by Wall Street Journal (WSJ), Bloomberg is going to endorse former US Vice President Joe Biden, even if he spent over $620 million in 3 months for his campaign. Bloomberg had plans to legitimize the crypto market in the US. His intention was to introduce clearer cryptocurrency laws and to replace the old State and Federal regulations for the industry.

Bloomberg Was Pro Crypto

Bloomberg had very clear policies for cryptocurrencies, so he was a pro-cryptocurrency Democratic candidate, together with Andrew Yang, who also dropped out of the Presidential race back in February. Yang was also pro adoption of crypto and creating standardized cryptocurrency laws. Here are Bloomberg’s exact words on his drop out:

“After yesterday’s results, the delegate math has become virtually impossible—and a viable path to the nomination no longer exists… I’ve always believed that defeating Donald Trump starts with uniting behind the candidate with the best shot to do it. After yesterday’s vote, it is clear that the candidate is my friend and a great American, Joe Biden.”

What Will Happen with Crypto Regulations After the Election?

Super Tuesday had Sanders and Biden as front runners for the Democratic Party, but neither of these 2 candidates has even mentioned cryptocurrencies in campaigns. However, they both have interests in the US’s tech industry, with Biden being favored by voters who know more or are involved with technology.

On the other hand, Sanders is famous for supporting the breakup of major tech companies like Amazon, Facebook and Google. If Biden is to be elected, the scrutiny on Facebook’s Libra is sure to increase.

When it comes to President Donald Trump’s stand on crypto, he thinks not so highly of it, especially since the crypto industry is highly developed in North Korea, China and Iran. Seeing there’s none of the remaining candidates to focus on crypto policies, regulations in the industry may lie with the US Congress, just like Cryptocurrency Act of 2020 and the Token Taxonomy Act do.

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Author: Oana Ularu

Global Uncertainties and a Weak US Dollar to Raise the Price of Bitcoin in 2020

According to a Bloomberg report from Monday, it’s very likely the price of Bitcoin (BTC) will increase in 2020, as a result of a weak US dollar and global uncertainties.

The predictions say BTC can reach its 2019’s top range of $14,000 if the geopolitical situation is still tensioned and the stock market continues to be volatile. Bitcoin has always been seen as the digital version of gold, mainly because it’s a limited asset that can’t easily increase to meet demands, just like gold. The halving that will take place later this year should reduce block rewards to 6.25 BTC, not to mention the BTC supply is expected to increase by 2.5% in 2020 as a result.

BTC Investment May Take Many Forms

The more investments in BTC are increasing, the more they can take different forms, analysts are saying. More than this, the derivatives market is continuing to expand and integration to major markets is possible. All this may have incredible effects on the BTC price and decrease volatility. Not everyone is convinced though, that the BTC has a strong connection with gold. For example, Quantum Economics founder Mati Greenspan called this relationship weak and mentioned the 2 assets may grow to be negatively correlated.

Bitcoin Had Its Moments of Volatility

There have been many volatility moments for BTC. For instance, it surged over $10,000 immediately after China’s President Xi has made a speech in which he encouraged the adoption of blockchain technology. For now, analysts think volatility doesn’t help BTC to be a stable store of value. However, this won’t stop investors to value their digital assets and keep the BTC price stable. Bloomberg thinks the Tether market cap will continue to expand in 2020, so many other cryptocurrencies will struggle to keep their investors according to how supply outstrips are demanding. Here’s exactly what the report continues to say:

“Bitcoin should again outshine most crypto assets in 2020 as the unique and appreciating digital version of gold. Bitcoin is winning the adoption race, notably as a store of value in an environment that favors independent quasi-currencies.”

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Author: Oana Ularu

Bitcoin Shows Resilience, As Bloomberg Predicts That It “Is (Probably) Here to Stay”

Bitcoin-Shows-Resilience-As-Bloomberg-Predicts-That-It-Is-Probably-Here-to-Stay
  • Bloomberg reported on three main reasons why they think that Bitcoin’s price is rising and why the crypto market is sticking around.
  • Presently, Bitcoin is above the $12,000 price level, at the time of writing.

Bitcoin is having a great month so far, and there are many people that believe that it is going for a full rally. For much of 2018, Bitcoin resided below $4,000, but this week has increased the price by nearly $10,000. The cryptocurrency still has a relatively volatile price, but there are many proponents of Bitcoin that believe it to be on the way to that $20,000 price level of late 2017.

Reported by Bloomberg, these price changes almost create a paradox – if the Bitcoin boom was nothing more than a bubble in the first place, how is it now gaining traction again. The only logical explanation is that cryptocurrencies are most likely securing their place in the economy now.

The recent Bloomberg article speculates that one of the reasons for the rising Bitcoin price could be rising is due to the trade war between the US and China. At this point, it looks like China does not intent to join the international economic order, creating a cold war. If China opts against liberalization and stays out of this order, then Bitcoin would serve as a helpful way to move funds outside of China. It is possible that the government could stop this practice from happening but choosing to outright liberalize would stop Bitcoin from being usable entirely.

Another development that Bloomberg credits is the way that the Democratic Party of the US continues to lean to the left, especially regarding a wealth tax. Fiscal deficits in the US have grown, and restoring the balance is a long-term goal. Presidential candidate Elizabeth Warren has campaigned for a 2% wealth tax.

Regardless of the public view of these opportunities, it is clear that cryptocurrency provides an avenue to store assets in unreachable accounts to keep them away from the tax authorities. Many nations could potentially look to a wealth tax to help them establish balance in their financial issues. Realistically, the growing price of Bitcoin is showing that it will be hard to find “fiscal solvency,” as Bloomberg wrote. However, it does not look like the wealthy plans to bid farewell to their assets yet.

The third reason that Bloomberg believes that Bitcoin is rising in price is due to the movement for Facebook to launch their Libra cryptocurrency. There are many roadblocks in the current laws that could impede the progress of this launch, but the idea that remittance and other fund transfers could come at such a low cost would be highly beneficial to consumers. The stakes get even higher if the costs could be dropped from 7% to around 1% or 2%.

Cryptocurrency is an ever-evolving landscape, and all of this progress shows that it is a market work looking at. Competitors may arise for the original cryptocurrency, but that competition just means that companies have enough faith that they can become successful too. As long as their competition, there’s a clear desire for the market to be kept alive.

At the time of writing, Bitcoin was priced at $12,284.96, jumping by 14% in the last 24 hours.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

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Author: Krystle M