[Durango Dude]

I can hear Crypto fans saying if you can believe in God whom you haven't seen why can't believe in a 'free for all' crypto. Now every Govt in the world will jump on the block chain bandwagon and promote their own "make believe" currencies and they will ask their citizens to buy those instead of the really 'free' crypto like Bit Coin etc...As such INR is bakwas...a good start can be made to encourage Capital account convertibility and allow Indians to convert their earnings into Dollars or Euros and then hold their account in the same currencies. That itself will satiate the thirst for avenue to save, as INR itself is useless as a unit of saving.

[warrioraks]

Originally Posted by m8002?

Here we go on the plan to ban Crypto by GoI.

https://news.rediff.com/commentary/2...9a6a95bd469365



What happens to the cryptos that people already own? They cannot convert them to rupees?
Whats the future of the crypto exchanges/wallets that popped up and are at $1B valuation?

Slightly surprised by the blanket ban. RBI had setup good fielding the other day by commenting that cryptos can destabilize the financial system and should be banned. Still did not expect the government to take such a hard stance.
Although I am against investing in crypto currency, I still feel government should not take the freedom of choice away from the people. Let folks gamble away their wealth till the time it complies to KYC, FEMA, XYZ norms.

People will now have to dump their crypto investments. Can we expect another stock market rally now?

[Gansan]

Originally Posted by m8002?

What happens to the cryptos that people already own? They cannot convert them to rupees?

Originally Posted by warrioraks

People will now have to dump their crypto investments. Can we expect another stock market rally now?

I think people will be given a timeframe to liquidate their holdings and convert to INR, and the gains will be taxed. Government will not let their money go up in smoke.

[SnS_12]

Originally Posted by Gansan

I think people will be given a timeframe to liquidate their holdings and convert to INR, and the gains will be taxed. Government will not let their money go up in smoke.

Even, if that is allowed, what happens if the value of the investment is lower than the amount of investment when the timeframe is exhausted?

Former Reserve Bank of India (RBI) governor Raghuram Rajan believes most of the existing cryptocurrencies will soon perish.

Around 6,000 cryptocurrencies are in existence and Rajan believes that only one or two, or at most a handful, would survive. In an interview with CNBC-TV18, Rajan said that if things have value only because they will be pricier down the line, it is a ‘bubble’. “A lot of cryptos have value only because there is a greater fool out there willing to buy,” he said.

[Techani]

What is the possibility that all crpyto/INR goes to zero if the amendment gets through as it is?
I say/ask this, because unlike China ban, there has been a distinct divergence between prices of all crypto/USD and all crypto/INR.
Crypto/USD is quite steady but all crypto/INR are crashing on sell load.
Arent the prices supposed to be in sync, like crypto/(USDxINR)=crypto/INR?

[jkrishnakj]

I would not be surprised if some of the coins go to zero. Trying to experiment, I did download coin switch 3 days back. Put in 5K across three known coins. Had pulled out what ever was left (2k) this morn.

[AZT]

Originally Posted by SmartCat

Only speculators keep their cryptos with the exchanges. Hardcore crypto investors use the exchanges only for transactions. Their wealth is stored in 'cold wallets' and 'vaults'.

All crypto guys have heard this being mentioned "Not your keys, not your coins". This is exactly to deal with govt law changes and exchanges being hacked.

[PreludeSH]

People think crypto currency is blockchain. And without crypto currency they think blockchain innovation will come to standstill. Even on TV I have seen people showing their lack of knowledge about blockchain and crypto currencies.

Its like govt allowing one to print private paper currency and banning it is detriment to printing technology.

Now the govt can allow it as an asset because they can tax any increase in value. Then its like anything I have to which I can assign a value and finding someone who sees more value than I do. Stock markets work on the same principle although one might argue there is an asset that stock tracks. Not sure of this at P/E of 120

[SmartCat]

Originally Posted by Techani

I say/ask this, because unlike China ban, there has been a distinct divergence between prices of all crypto/USD and all crypto/INR. Crypto/USD is quite steady but all crypto/INR are crashing on sell load. Arent the prices supposed to be in sync, like crypto/(USDxINR)=crypto/INR?

Just supply and demand. If panicky sellers hit the SELL button, prices in INR on Indian exchanges will crash. Crypto markets don't have too many arbitrageurs like stock markets. Theoretically, smart crypto traders should be able to BUY on Indian exchanges at panic low prices and SELL on foreign exchanges or P2P networks at higher prices, equalizing the price difference. However, crypto investing /trading in India is inefficient because transferring funds to crypto exchanges itself is not allowed by most major banks.

What is the possibility that all crpyto/INR goes to zero if the amendment gets through as it is?

Newbies who do not have much understanding of cryptos will hit SELL button and take whatever price is offered. But somebody with an understanding of what cryptos are will not (since it can always be held in a wallet or sold in a foreign exchange or via foreign P2P network).

If you need an analogy, if Govt brings a bill to ban buying/selling of Gold, its price in India will not go to zero. Not everybody will rush outside to sell their Jewellery (but many will).

Originally Posted by jkrishnakj

I would not be surprised if some of the coins go to zero. Trying to experiment, I did download coin switch 3 days back. Put in 5K across three known coins. Had pulled out what ever was left (2k) this morn.

Mistake . Prices are slowly recovering on Indian exchanges:



Crypto Bill Will Regulate, Not Ban, Claim Industry Sources
https://www.ndtv.com/business/crypto...ources-2622667

[Fuldagap]

Many, including the exchanges in India have made a killing since yesterday's panic. Innocent people who are in it without much knowledge were taken for a ride thanks to our extremely responsible media. People bought at highs and sold off at lows. That's how pure investors make money. If investing in cryptos is majorly speculation, then the speculation since yesterday about the bill is altogether at a different level.

Zero accountability of the media, but the common man suffered, uncertainty prevailed. However, for long term investors this is a friendly phase for sure.

[warrioraks]

Virtual real estate plot sells for record $2.4 million
https://www.reuters.com/article/fint...-idUSKBN2I81S0

If this is for real, then humans are the most bored species in this history of civilisation. Anything and everything sells

Originally Posted by Gansan

I think people will be given a timeframe to liquidate their holdings and convert to INR, and the gains will be taxed. Government will not let their money go up in smoke.

My comment was not about liquidation. It was more in relation to where will the money go once everyone is forced to liquidate in the scenario of a total ban.

[Samurai]

Originally Posted by warrioraks

Virtual real estate plot sells for record $2.4 million
https://www.reuters.com/article/fint...-idUSKBN2I81S0

If this is for real, then humans are the most bored species in this history of civilisation. Anything and everything sells

How is that different from Cryptocurrency or NFTs?

It is just another asset that has value because lots of people think it does.

[green_ninja]

Here is my 2 paise about cryptocurrency...it is the wampum (https://en.wikipedia.org/wiki/Wampum#Currency) of the Internet age. Bitcoin was the original hand manufactured wampum, it is difficult to make (or mine in this case) and there is a limit. The myriad other coins that are appearing now are the industrial manufactured beads the Dutch made.

Wampum has no inherent value in itself but only what someone else is willing to pay for it in the equivalent of a sovereign fiat currency. When the interest rates on said sovereign fiat currency rise (which it will) then wampum will be of no use to the speculator because (s)he can get a better yield on something that is backed by the full might of a nation armed to it's teeth than some computer nerd sitting in his mother's basement. And the argument that wampum will hold it's value when war breaks out is even more illogical. What would you rather carry to a bomb/shelter or refugee camp? Wampum in a pen drive that you don't know when it will fail or a gold tooth? I know what I will.

To all the technical BS that is used to justify these valuations, I paraphrase what a very wise man once said " You don't need more than simple arithmetic or the most elementary algebra to make dependable calculations about investment policies. Whenever abstruse technical explanations are brought in it usually means the operator is trying to give to speculation the deceptive guise of investment".

[warrioraks]

Originally Posted by Samurai

How is that different from Cryptocurrency or NFTs?

It is just another asset that has value because lots of people think it does.

By this logic, NFTs and Gold are no different as well.

[SmartCat]

I think we will eventually get used to this. These days, we don't bat an eyelid if Kurt Cobain's guitar is auctioned for $5 million or some strange looking painting is auctioned for $1 million.

Sotheby's and Christie's have been selling junk at eye-popping prices for hundreds of years. Now thanks to the internet/virtual world/NFTs, everybody can sell junk for millions of dollars.