India's Crypto Economy
India's Crypto Economy is a brand-new weekly newsletter (delivered every Thursday) from Inc42 to help you decode the rapidly growing crypto economy and its implications on business, work and life. We launched this newsletter on the 4th anniversary of our weekly series “Crypto This Week” which completed 190 editions in May, 2021.
On Monday, February 22, the price of 1 Bitcoin at $57,000, had exceeded the price of 1 Kg gold bar at $56,500, solidifying the claims of crypto stakeholders that the crypto is the new age investment asset class. What followed though is something crypto evangelists would want to unsee. The price of the world’s leading cryptocurrency corrected and has fallen 9.45% in the last 24 hours, currently trading at over $48K. This has sent some novice investors into a panic, and other currencies also dropped in value sharply.
Sumit Gupta, CEO and cofounder of CoinDCX, offered some perspective about the Bitcoin price correction. “After reaching an all-time high of $58,000, Bitcoin saw a price correction today. This was expected as markets go through such correction cycles. However, the market showed signs of recovery after falling nearly 17%. Investments in Bitcoin, like any other asset, should be from a long term perspective as the fundamentals are still going strong. Hence it is advised that investors buy the dips and hold with a long term perspective,” he told Inc42.
Previously, several crypto experts have talked about the possibility of frequent price corrections in Bitcoin, and how investors can guard against the price volatility of crypto assets.
“At ZebPay, we encourage dollar-cost averaging — investing fixed amounts at regular intervals,” said Vikram Rangala, chief marketing officer at Zebpay.
Rangala advised that one should buy small amounts of Bitcoin daily or weekly, hold it long-term through the ups and downs, and stick to a buying plan for years, not months. “It’s like an SIP for bitcoin,” he said.
“At some point, there is always a correction (fall) in price. Anyone who pretends to know more than this is fooling himself or others. Although, Bitcoin will continue to go up (with periodic corrections) and could easily hit INR 1 Cr by 2030, as our CEO (Rahul Pagidipati) has predicted,” he added.
Bitcoin & Ethereum Prices
At the time of writing, Bitcoin was trading at $48,671, a gain of 0.4% in the last seven days.
Ethereum was trading at over $1,552, a decrease of 13.57% in the last seven days.
Other Cryptocurrency News From India
Indian billionaire says the country’s regulators need to ‘step in and ban bitcoin’
Indian billionaire investor Rakesh Jhunjhunwala said the country’s regulators should ban cryptocurrencies such as bitcoin. The investor sometimes referred to as India’s Warren Buffett said he “will never buy bitcoin.” Read the full story here.
SEBI Tells IPO-Bound Companies, Promoters To Sell Cryptos Ahead Of Listing
India’s markets regulator, the Securities and Exchange Board of India (SEBI), is reportedly asking promoters looking to raise funds for their companies through an Initial Public Offering (IPO) to sell their crypto assets before raising funds.