With surging cases of coronavirus across the globe that have changed everything, Bitcoin is rushing and taking new heights while marking new records every day.
The crypto market has seen a huge rise in wealth from $1.6 Billion to $1.9 Trillion.
Also, Cryptocurrency had been the finest asset to be owned in FY21.
Cryptocurrency in 2020
While all the commodities were losing their value in stock markets resulting in huge losses and experiencing a retarding graph, Bitcoin and other digital assets were becoming the primary preference of many investors. And that’s something we call “A black cloud with a silver lining.”
According to sources, the Cryptocurrency market has outperformed every other investment sector. Bitcoin was traded roughly around $7,411 on the 5th of Jan 2020 and surged around 159% till December 2020.
Similarly, Ethereum, which was around $136 in January 2020, reached $735 till December last year, growing around 337% since then.
Many other tokens have been recorded with significant growth percentages like XRP and LINK. However, those didn’t make such value as compared to Bitcoin.
The New Financial Year 2021
In December 2020, Bitcoin exponentially accelerated to reach a new all-time high. It was traded around $20,000 and fell by $3,000 in the same tenure, resulting in dropping all other digital currencies.
On the other hand, The Supreme Court of India hasstruck down the decision of RBI for banning Cryptocurrency in India. The move Left the investors spooky and waiting for results and verdicts.
A lot of money has been invested in digital currencies, yet the rules aren’t finalized. This could lead to a huge loss if the laws go against the investors.
What remains important is the discussion over Cryptocurrency and making rules and regulations in favour of the investors. Because they believe that GDP will also be affected on a positive note if the law favours Crypto.
According to Nischal Shetty, CEO of WazirX, the Crypto market is important to the nation’s growth. The verdicts should be made considering the growth of the segment. This market has a great potential to surpass the economies of many countries if Bitcoin is legalized.
Positive Insights of Digital Assets in the Financial Year
- As the crypto market seems quite volatile because of COVID-19, it’s believed that it can track new records and outperform any other financial asset in the race if it exists. The encouraging news about Cryptocurrency makes it more obvious for an investor to invest in the market.
- Economic scientists predict a great change in Bitcoin and other digital assets till 2022. From valuing $1 in 2011, Bitcoins has crossed the 50K mark this year and is expected to value around $100K to $400K by the end of this financial year.
- Elon Musk has officially declared that the posh cars of Tesla, whose self-driving concept has been mind-blowing, can be bought through Cryptocurrency. Also, he made an astounding investment in Bitcoins which sums up around $1.5bn.
- The prices have surged so high that even the payment methods related to Visas are going to be available through digital currency. An API is on its way to make this happen by the end of 2021.
- Many other firms working on Blockchain Technology like CITI also have declared a piece of positive news about Bitcoins and cryptocurrencies. The prediction remains the same. The price could go as high as $300,000 till this year ends.
- The Indian government is looking to propose a bill regarding cryptocurrency holders which states that the investors have to reveal their assets to the government as a part of financial statements. The Ministry of Corporate Affairs (MCA) has made it clear that your holdings, profits and losses, and deposits made or in advance will be recorded.
Negative Insights of Digital Assets in the Financial Year
- However, some sources say that the Indian government might ban Cryptocurrency and make sure that holders and investors involved in some way or the other will be penalized.
- It can criminalize any possession, holding, mining, or exchange of Cryptocurrency. Also, the sources state that the investors will have to liquidate every penny and coins within six months if the law comes into power.
- With the soaring prices of Bitcoins and assets, the volumes are swelling like anything. It’s calculated around 8 million investors possessing 100 billion INR only in India. Although, it is unproven data. No official chart has been released yet so far.
This financial year seems a bit tricky either for banks or for investors. Rules could go either in the favour or against it. However, the government will make sure that the investors get a surplus amount of time to release funds if laws go against the will. The final verdict and laws are still awaited.
OpenDefi provides 100% asset backed banking without the insidious, hidden charges and time consuming tedium that come with traditional banks. Through their Fiat on ramp OroPocket, users can invest into multiple asset classes, grow their wealth, enjoy 100% liquidity—all on Blockchain, with a simple app.