Cryptocurrencies Witness Their Greatest Downfall After Jaitley's Call To Eliminate Their Use

| February 3 , 2018 , 18:18 IST

The cryptocurrency wave has met its biggest downfall in the past few days, owing to several government regulations across the globe. India, one of its top ten markets and the promising ground too turned hostile. 

Finance Minister Arun Jaitley in his budget speech on Thursday, announced that the Government will do everything to cease the utilization of bitcoin and other cryptocurrencies in India. He repeated that India does not recognize them as legal tender and will instead encourage blockchain technology in payment systems.

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“The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system,” Jaitley said.

The Government and the Reserve Bank of India have publicly voiced their concerns over bitcoin and other cryptocurrencies. Finance Ministry Arun Jaitley speaking in the Parliament had earlier dubbed them as Ponzi scheme.

“There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money,” the minister had said.

The Government had also setting up an inter-departmental committe in 2016 and an expert group was later created under Secretary, Department of Economic Affairs to determine how cryptocurrencies should be dealt.

Following Arun Jaitley's budget speech where he clearly stated that the Government will take all measures to eliminate the use of cryptocurrencies, bitcoin has seen a huge downfall in its value. 

The value of cryptographic forms of money fell on Friday, witnessing one of the biggest falls by more than 20 percent. Bitcoin slid underneath $8,000 (approx Rs. 5.12 lakhs) and set out toward its most terrible week since 2013, with investors scrambling to sell their bitcoin. The downfall in prices this week means the total market value of cryptocurrencies is down to $385 billion (roughly Rs. 24.6 lakh crores), less than half the high it reached in January, according to industry tracker

The market estimation of cryptographic forms of money is computed by multiplying the quantity of digital coins in existence by their cost.

2017 may have been the year crypto was riding the bull, however, that bull could now be butchered in its tracks. Bitcoin has already been restricted in Russia, Taiwan, and Bolivia.