Has India’s approach to cryptocurrencies changed amid bitcoin’s record high?

Has India’s approach to cryptocurrencies changed amid bitcoin's record high?

From a ban to a boom, is India coming around on bitcoin? With the famous (some would say ‘infamous’) cryptocurrency on a never-before-seen rally and seemingly on the verge of breaking its all-time peak, that is the big bucks question on the minds of many in India’s financial scene. Big bucks worth nearly Rs 14 … The giant online rental marketplace based in San Francisco, Airbnb is considering supporting cryptocurrencies and blockchain technology. The news stems from the company’s initial public offering (IPO) prospectus with the U.S. Securities and Exchange Commission (SEC). Airbnb’s filing notes that future success will be dependent on adapting to new technologies such as tokenization and cryptocurrencies. […] The post Airbnb IPO Prospectus Says Future Success Means Adapting to Cryptocurrencies appeared first on Bitcoin News. Masayoshi Son, the chief executive of investment conglomerate SoftBank, has confirmed that he sold his Bitcoin tokens recently after finding the asset to be “too […]

From a ban to a boom, is India coming around on bitcoin? With the famous (some would say ‘infamous’) cryptocurrency on a never-before-seen rally and seemingly on the verge of breaking its all-time peak, that is the big bucks question on the minds of many in India’s financial scene.

Big bucks worth nearly Rs 14 lakh a piece, that is. For, that is the value – a three-year high – that Bitcoin attained as of Saturday morning India time.

Many believe it will cross the all-time record point of Rs 14.67 lakh it attained back in 2017, the coming week. It won’t be a surprise considering how it has gone from strength to strength in the year of COVID-19. In March this year, bitcoin was valued under Rs 4 lakh, before hitting just under Rs 14 lakh early today, a steady growth rate of 160 per cent in just seven months!

Too much, too fast? Indian government officials always looked at the cryptocurrency as a sort of ‘clear and present danger’. Reserve Bank of India (RBI) banned all banking transactions by crypto traders in the country two years ago, what it called ‘ring fencing’ (not a direct ban, but just restrictions on those doing it). But the Supreme Court (SC) intervened and threw out the ban in March this year.

The withdrawal of restrictions, perhaps, could not have come at a better time, just as the pandemic hit and the nation went into lockdown. Reports indicate thousands of new investors signed up with the many crypto exchanges across India, to trade in bitcoins and the like. The reason? As global economy and global indices like the dollar and petroleum prices tanked, bitcoin, always designed to be macro economy-proof with its own security (blockchain) and transaction ecosystem, simply took off. Even gold, normally considered the best antidote to economy downturns, grew just 30 per cent in value through the pandemic, while bitcoin grew 160.

“(Supreme Court striking down RBI’s banking ban) definitely boosted crypto adoption in India. Our monthly trading volume has grown by 470 per cent since the removal of ban on crypto,” says Nischal Shetty, CEO of WazirX, a leading Indian crypto trading firm.

Explains Sumit Gupta, CEO of CoinDCX, an Indian cryptocurrency exchange, “COVID-19 witnessed major asset classes showing an inconsistent behaviour since investments were dependent on various factors like geographies, demographics, markets and economies. However, bitcoin was unaffected since it is indifferent from the above and is only based on demand and supply. Besides, it is an outcome of blockchain technology, one of the safest sources of digital money security.”

The Diwali season saw another high, with reports of patrons substituting gold with cryptocurrencies like bitcoin and ethereum on Dhanteras (the auspicious day for buying previous metals, just ahead of Diwali). CoinDCX offered customers a free trading option on the day of the festival, much akin to the mahurat trading that happens in Indian stock exchanges on Diwali day.

But the big question, of course, is the stance the Indian government will take. There were murmurs emanating from the finance ministry after the SC knocked down RBI’s crypto ban that the Centre could bring in a law or ordinance to circumvent the ruling, but there has been no official stamp on it so far. The Internet and Mobile Association of India is already in talks with government officials as well as regulatory bodies, trying to draft out a regulatory framework under which crypto trading can be done legally in the country.

A draft version of a code of conduct for crypto traders is also ready, including KYC as well as provisions against money laundering. “There is a need for positive regulation so that ecosystem is clean and we can keep on innovating,” admits Shetty.

Being the favourite ransom ask of internet hackers may have given bitcoin something of an unsavoury reputation, but the wind now seems to be blowing in favouring of regulating it and harnessing its potential rather than outright shunning it with bans. Financial sector giants like Mastercard and PayPal have already opened up their networks to cryptocurrencies. Countries like Japan, Australia, South Korea and Switzerland have voiced their interest in institutionalising cryptocurrencies.

“More and more countries are setting up regulation for crypto now. I’m very optimistic that India will take a cue from them and bring in positive regulations as it will lead to more startups building in blockchain, more jobs, and more tax revenue for the government,” hopes Shetty.

Source: otcpm24.com

Author: News Bureau


Airbnb IPO Prospectus Says Future Success Means Adapting to Cryptocurrencies

Airbnb IPO Prospectus Says Future Success Means Adapting to Cryptocurrencies

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Airbnb IPO Prospectus Says Future Success Means Adapting to Cryptocurrencies

The giant online rental marketplace based in San Francisco, Airbnb is considering supporting cryptocurrencies and blockchain technology. The news stems from the company’s initial public offering (IPO) prospectus with the U.S. Securities and Exchange Commission (SEC). Airbnb’s filing notes that future success will be dependent on adapting to new technologies such as tokenization and cryptocurrencies.

  • The travel industry has been one of the hardest-hit sectors in the economy after the coronavirus outbreak shook the world. In a recent filing with the SEC, Airbnb has filed a prospectus on November 16 seeking a $1 billion initial public offering (IPO) in the United States.
  • Within the pages of the Airbnb prospectus, the company mentions considering technologies like blockchain, cryptocurrencies, artificial intelligence (AI), and the “ability to integrate new or emerging payment methods.”
  • In 2014, Airbnb representative Brian Chesky asked his followers on Twitter if Airbnb should accept bitcoin. A great number of respondents on Twitter said that the company should adopt cryptocurrencies.
  • In 2016, during an interview with City A.M., Airbnb cofounder and Chief Technology Officer, Nathan Blecharczyk spoke about the M-pesa and blockchain technology.
  • Should @Airbnb accept Bitcoin?

    — Brian Chesky (@bchesky) January 24, 2014

  • “Our future success will also depend on our ability to adapt to emerging technologies such as tokenization, cryptocurrencies, [and] new authentication technologies,” the Airbnb filing details. “As a result, we intend to continue to spend significant resources maintaining, developing, and enhancing our technologies and platform. However, these efforts may be more costly than expected and may not be successful.”
  • While the firm mentioned blockchain, cryptocurrencies, and augmented reality, Airbnb saw a 39% revenue loss year-over-year from the coronavirus pandemic.
  • The company says that after the major drop this year, Airbnb rebounded two months later. “In early 2020, as Covid-19 disrupted travel across the world, Airbnb’s business declined significantly, but within two months, our business model started to rebound even with limited international travel, demonstrating its resilience,” Airbnb states.
  • Airbnb has stated in the past that it has no current plans to support cryptocurrency payments from blockchain networks like Bitcoin. Airbnb and Uber investor, Jeffrey Wernick, advocated in 2018 that “everybody should put something into crypto.”
  • In April 2016, Airbnb did acquire the startup Changecoin when the billion-dollar firm “acqui-hired” seven developers from the now-defunct bitcoin tipping platform Changetip.
  • New authentication technologies mentioned in the Airbnb prospectus included: “Biometrics, distributed ledger and blockchain technologies, artificial intelligence, virtual and augmented reality, and cloud technologies.”
  • Airbnb’s IPO prospectus filed with the U.S. Securities and Exchange Commission (SEC) can be read in its entirety here.

    What do you think about the mega short term property rental company Airbnb mentioning cryptocurrencies and blockchain in its IPO prospectus? Let us know what you think about this subject in the comments section below.

    The post Airbnb IPO Prospectus Says Future Success Means Adapting to Cryptocurrencies appeared first on Bitcoin News.

    Source: cryptomoneyteam.co

    Author: By TeamMMG


    SoftBank CEO Supports Crypto Despite Losing $50 Million to Bitcoin

    SoftBank CEO Supports Crypto Despite Losing $50 Million to Bitcoin

    Masayoshi Son, the chief executive of investment conglomerate SoftBank, has confirmed that he sold his Bitcoin tokens recently after finding the asset to be “too distracting.” According to a Business Insider report, Son made the statement while at the New York Times DealBook conference.

    Son is one of Japan’s richest men. His investment firm, SoftBank, has stakes in several top tech stocks – including Uber, Boston Dynamics, and ARM. With such a vast portfolio, there’s no way he wouldn’t have heard about Bitcoin.

    As he explained to host Andrew Ross Sorkin, he has, in fact, invested in Bitcoin. The billionaire confirmed that an associate convinced him to invest about 1 percent of his wealth into Bitcoin when the asset was close to 2017’s bull run height.

    Given his net worth at the time, he would have invested about $200 million. However, the billionaire eventually sold off his tokens in January 2018. While that period marked the drop off in Bitcoin’s price, Son explained that he didn’t sell due to the price glut. Instead, he found the asset’s volatility too distracting that he began to lose sight of his business.

    While he confirmed a $50 million loss from the selloff, the billionaire explained that he felt much better nonetheless. Son also explained that he would be staying off digital currencies for the time being, even though Bitcoin appears poised to test its all-time high.

    The billionaire also explained that he believed digital currencies would be here for the long haul. While he doesn’t understand them, he threw his weight behind the assets and their long-term functionality.

    Son isn’t the only billionaire to call out Bitcoin for its volatility. Earlier this year, Ray Dalio, a hedge fund investor, made similar claims.

    Dalio is the Chief Investment Officer of Bridgewater Associates, the world’s largest hedge funds. Worth an estimated $17 billion, Dalio called for investment diversification earlier this year. Speaking with Sorkin at the World Economic Forum, the billionaire bashed cash severally, explaining the need for diversification.

    When Sorkin asked about Bitcoin’s prospects as an asset, however, Dalio was less optimistic. In part, he said:

    “There’s two purposes of money, a medium of exchange and a store hold of wealth, and Bitcoin is not effective in either of those cases now.”  

    The hedge fund manager also harped on Bitcoin’s volatility, claiming that it made the asset an unattractive choice for serious investors. Instead, he gave support for gold and Libra, the stablecoin project from social media giant Facebook.

    Dalio has bashed Bitcoin’s volatility since then. In a Twitter conversation from last week, the billionaire once again asserted his belief that the asset’s fluctuations didn’t make for a great investment. However, he also admitted that he could be wrong, asking for anyone with more knowledge to correct him.

    Source: insidebitcoins.com

    Author: FOLLOW ON


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