Global Bitcoin prices that had skyrocketed to Us$5000 about 15 days back, has suddenly fallen to around US$3500 now. In Indian currency the rate which struck a high of Rs 353519 has now fallen to around Rs 230000/-.
One of the reasons quoted for this sudden fall is the action taken by China first to ban ICO s (Initial Coin Offerings where pre-mined coins are offered at a price as an investment) and now possibly moving to close the Bitcoin exchanges by end of the month. ( Refer here)
Many investors in India who were fooled by the game being played by the Finance Ministry and invested in Bitcoins must have been caught in this volatility and lost money. In the bargain, some must have also made money. The exchanges would have made their money from both the losing investors and gaining speculators.
These exchanges could have therefore rewarded the officials with hard cash in Indian currencies and perhaps more of bitcoins, for not taking any action to ban Bitcoin and continue to adopt a strange policy called “Observing” .
This is a case fit for CBI investigation of possible corruption by all those who are involved in the decision not to ban Bitcoin all these days and particularly after the public consultation process was launched through MyGov.in and yet no action was initiated allowing the stake holders to spread all sorts of rumours that India is likely to legalize Bitcoins etc.
It is tragic that Mr Jaitely and Mr Modi are turning a blind eye to this scam of “Delaying decision on Bitcoin” engaged in by the Finance Ministry. The situation is similar to decisions that Bureaucrats and politicians engage in when a large tract of real estate property is under consideration for either being “Declared as a Green Zone” or “To be denotified”. The delay in the decision making is a fertile ground to promote speculation and only those who are very very close to the decision makers will make money and every one else lose. This is exactly what is happening now in the decision on “Whether Bitcoin has to be banned, legalized or Observed”?.
We have pointed out earlier that if Bitcoin is legalized in India there could be a 50% increase in floating currency leading to inflationary pressures of unimaginable magnitude. We had also pointed out that China had a large holding of Bitcoins and could destabilize Indian economy by its manipulations of Bitcoin pricing.
The current indications confirm the control that China exercises on Bitcoin pricing and its ability to move the price easily from around $2000 to $ 5000.
However, one may wonder why China with its own Bitcoin wealth should do anything that reduces the price of Bitcoin.
One reason is that the ICO phenomenon showed how corrupt techie mafia could simply create wealth for themselves using the gullibility of public who are enamoured by the concept of “Regulation Free, Tax Free, Anonymous currency” and jumped into buying anything called a “Crypto Currency”. This could perhaps be the biggest ever financial scam in the Globe. China may not be interested in a Cryptocurrency calamity that brings down the value of all Crypto currencies to “Zero”.
Another point to be noted is that there were many other foolish and perhaps more corrupt regulators around the world who had legalized Bitcoins and allowed for conversion of Bitcoins into legit fiat currencies.
Possibly China would have made use of this opportunity to convert its Bitcoin wealth to Swiss Francs or Japanese yen and may be sitting pretty and would not mind a fall in the value of Bitcoins.
We should also recognize that Bitcoin has been freely converted into many other AltCoins for quite some time and hence the Bitcoin is today indistinguishable from other Altcoins and all Crypto Currencies belong to one large kitty which are part of the global Crypto currency scam.
It will not take much time for the skeletons to tumble down in the international markets and the Crypto currency dream will be shattered.
In that event, even those Banks in India who might have already got some stake in the Bitcoin holdings could face the adverse effect of this scam affecting to a small extent the Indian Banking industry. Hopefully, this damage will be small and will be off set by the strengthening of the rupee against currencies like Yen and Swiss Franc, Canadian dollars and also perhaps the US dollars due to the larger impact on those currencies with the bursting of the Crypto currency bubble.
As for as India is concerned, the ball has now moved from Mr Arun Jaitely to Mr Narendra Modi himself. RBI has failed to take a decision in-spite of the Supreme Court’s prompting. Finance Ministry officials including SEBI appear to be on the wrong side of the decision.
Mr Arun Jaitely is either sympathetic to Bitcoin or is simply unable to take control of vested interests who are on the side of the Bitcoin Exchanges operating in India.
The last hope now rests with Mr Modi. If Mr Modi does not want to defeat his own Black Money drive allowing conversion of Black money into Bitcoins, he should act now to “Demonetize Crypto Currencies” forthwith. It is already late and any further delay will start throwing shadows on the BJP’s own credibility to root out black money in India.
Hence the question: Dear Mr Modi, Can you see how China can manipulate Bitcoin Wealth?..Why Your Government is blind?
P.S: Today, one more article is found at : https://cointelegraph.com/news/indias-central-bank-considering-creating-digital-rupee-dislikes-bitcoin where the possibility of an Indian Crypto is being hinted.
I have already suggested this. However, it should be ensured that no conversion is provided from existing Bitcoins to the official crypto currency if it comes through.
Otherwise, the scam continues.
Further whether it should be an ICO or a real minable crypto currency, needs to be discussed.