Is It a Good Time to Invest in Bitcoin in India?
Investing in Bitcoin in July 2017 or any other time presents a unique set of challenges and opportunities. With the price ranging from 5 lakh to 10 lakh per coin, the initial investment barrier can be daunting. This article explores whether now is a good time to buy, and the potential impact of the Indian government on this decentralized cryptocurrency.
Understanding the Bitcoin Landscape
Bitcoin's journey has seen numerous highs and lows, making it difficult to predict its future value. The only truly good time to buy Bitcoin is when you believe it can fundamentally change the world. Until then, following the crowd can be dangerous, leading to financial downsides.
The Indian Government and Bitcoin
One common question is whether the Modi government might cause problems for Bitcoin in the future. While it's true that governments in general strive to regulate or even ban cryptocurrencies like Bitcoin, the decentralized nature of this cryptocurrency makes it nearly impossible to fully control.
No government can stop these decentralized crypto currencies. The reason we have Bitcoin is precisely because nobody or no central authority can control it. However, Indian government decisions can impact Bitcoin prices on a temporary basis.
Indian Government Impact on Bitcoin Prices
The Indian government's influence on Bitcoin prices is well documented. Many news reports try to predict Bitcoin's movements, but these predictions often fall short. Despite this, the government's decisions can still have significant impacts, especially in the short term.
For instance, just like the EURUSD currency pair is impacted by news from the European Central Bank (ECB) or the Federal Reserve (Fed), Bitcoin's price movements can be significantly influenced by government policies and actions.
July 2017 Perspective
Specific to July 2017, there are several key events that could impact the market. SegWit (Segregated Witness) was scheduled for deployment on August 1st. This upgrade could lead to market volatility and a roller coaster ride for Bitcoin prices.
Given these uncertainties, a prudent approach might be to wait until after August 3rd, 2017, when the upgrade has had a chance to settle. This would provide a better opportunity to enter the market, potentially at a more stable point.
Future of Crypto Regulation
The global regulatory landscape for Bitcoin and other cryptocurrencies is evolving. While financial regulators have historically tried to restrict and even ban these currencies, a shift towards regulation is increasingly visible. This move towards integration is seen as a more sensible direction.
However, implementing effective regulation for cryptocurrencies faces several challenges. The primary issue is the inherent anonymity provided by the blockchain technology. This makes it difficult to pinpoint the identities of parties involved in transactions, complicating regulatory efforts.
Additionally, the existence of numerous alternative cryptocurrencies (altcoins) further complicates efforts to manage and regulate the entire ecosystem. Finally, user cooperation with regulators is often lacking, as evidenced by the low number of Bitcoin transactions reported in tax returns, even where such regulations exist.
Conclusion
In conclusion, while Bitcoin investment presents both opportunities and risks, waiting until after August 3rd, 2017, to invest could provide a more stable entry point. Understanding the broader regulatory and economic context is crucial for making informed investment decisions.
The future of Bitcoin in India and around the world is likely to continue evolving, with regulation playing a significant role. Keeping an eye on regulatory changes and market dynamics will be essential for successful investments.