The year 2020 really belonged to Bitcoin. Between January 2020 to December 2020, the cryptocurrency grew 317.2%. Even on January 1 2021, Bitcoin was trading at Rs 23,61,651. In fact, since the lockdown began, the volume of crypto trading in India grew drastically and by the end of December 2020, $60-65 million worth of Bitcoin trades were happening on an average, every day. Since March 2020 there was a 12% jump in the number of trades that took place in India. These are the figures we could get regarding the cryptocurrency which is really very good. It is an accepted fact that Blockchain technology is all about removing the intermediary and today banks are intermediaries for all transactions so this Bitcoin phenomenon is going to stay here.
Right from the start, when Indian Economy & Market started its journey, we had been advocating this currency terming it as the ‘Currency of the Future‘ and don’t forget to read our article ‘Ban on Cryptocurrencies, a bad idea’
As we have said time and again the Bitcoin has proven to be safe, trustworthy and a viable mode of transaction globally. We will concentrate here only the trading part as trading is what is relevant to most of the people. As a result, we have a number of crypto exchanges across the world and in India.
Anyone who has an account with these exchanges can buy, sell or hold cryptocurrencies. The tech platforms match buyers and sellers depending on the quantity and the prices during the day. This is fairly a new concept and so there is a need today to create awareness among the public.
When cryptocurrencies become sovereign currencies, when people could use them as a funding source, regulators will think over some policy. Central banks globally are experimenting with Central Bank Digital Currency or CBDC, a new type of currency that can leverage blockchain technology. Media reports say that the Reserve Bank of India is expected to levy 18% GST on crypto-trades happening currently. A stubborn RBI should seriously think over it.