Indian cryptocurrency ban has dropped down cryptocurrency: Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano. Bitcoin, Ripple and Ethereum suffer price drop after Indian cryptocurrency ban announcement. The price of Bitcoin has nosedived by 11 percent today to its lowest point since November 2017 amid a growing backlash against cryptocurrency trading.
This dramatic drop came after India announced a ban on the buying and selling of virtual currences. Since the beginning of 2018, the value of the world’s largest cryptocurrency plunged by almost half in a ‘bloodbath’ which saw £31 billion shaved off the total value of the market.
Bitcoin dropped to a miserable low of $9,022 (£6,343) today, which is a long way from the high of almost $20,000 it hit at the end of last year.
It slid more than 26 percent last month in its worst monthly performance since January 2015. Other cryptocurrencies, including Ripple, the third-largest by market value, and Bitcoin Cash, have also racked up double-digit declines in the last 24 hours, according to Coinmarketcap.com.
The price of Bitcoin has taken a dramatic dive over the past 24 hours (Photo: Coindesk) Ethereum was up slightly on yesterday, although it has lost value since the beginning of the week.
Last year’s explosive rise in the value of digital coins and the flood of new retail investors drawn to the market have rattled global regulators nervous about a sector used largely for speculation.
Officials have also warned that cryptocurrencies can be used by criminals to launder money. India, which has likened the market to a Ponzi scheme, has just vowed to ban crypto trading.
Earlier this week, Facebook said it was banning all advertising that ‘promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency’.
It was not clear whether the ban would affect all cryptocurrency adverts on the social media site. Facebook could not immediately be reached for comment. A $530 million hack of Japanese cryptocurrency exchange Coincheck last week sent shudders through the market, along with the revelation that U.S. regulators are investigating two of the world’s biggest cryptocurrency players, Bitfinex and Tether .
‘Sentiment towards cryptocurrencies is turning sour with negative headlines pouring out from left, right and centre,” said Fawad Razaqzada, an analyst at FOREX.com ‘Concerns that Facebook is banning ads and major crypto exchanges shutting down have really silenced the hype and some people are probably having second thoughts about investing their hard-earned cash into digital currencies.’
In a development welcomed by cryptocurrency investors, the finance minister of South Korea, a major hub for digital coin trading, said on Wednesday there was no plan to outlaw their buying and selling after regulators had earlier pledged to do so.
Critics call cryptocurrencies a speculative mania that will end in tears for thousands of retail investors. Supporters say the price volatility is a distraction from the value of the underlying technology, which will transform the way money is stored and transferred and upend conventional banking. ‘Short-term pessimism misses the point that it could make the ecosystem thrive in the long term,’ said Charles Hayter, founder of London-based Cryptocompare.
International regulators are expected to debate how to address the risks posed by the market at the next G20 meeting in March.
Bitcoin in India: Has India just destroyed Bitcoin? Will BTC now crash?
BITCOIN could have just been DESTROYED after India’s finance minister Arun Jaitley vowed to ban cryptocurrency and discontinue the use of bitcoin. Will the BTC price now crash after India threatened a digital cash ban?
India’s government said it does not consider cryptocurrencies to be legal tender and will try tp phase out payments using coins such as bitcoin.
In a meeting yesterday, Mr Jaitley renewed India’s commitment to ending the use of BTC and other cryptocurrencies.
The ban, he said, was India’s continuing fight against money laundering and the funding of terrorism.
He said: “The government does not recognise 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”.
However, he did not rule out looking further into blockchain technology.
He said: “The government will explore use of blockchain technology proactively for ushering in digital economy.”
Will BTC now crash?
Cryptocurrencies could now be at risk after the announcement, amid the threat of bitcoin dumping or devaluation.
Anshul Vashist, Delhi-based support manager at the cryptocurrency exchange Coinsecure told Bloomberg: ”After today’s announcement, people are getting scared.
“We have seen some dumping of bitcoins.”
Coinsecure has a volume of about 100 coins a day, he said.
However cryptocurrency investor and influencer Oliver Isaacs said he was not convinced the so-called ban would have an effect on markets.
He told Express.co.uk: “With cryptocurrencies and blockchain technology going from strength to strength despite the volatile market conditions, I feel India’s threat to ban cryptocurrency will not have the devastating effects that some people are suggesting.
“A ban is unlikely to decrease the speed at which digital currency is moving, given the unprecedented growth in other countries, who currently show no signs of going down the same path as India.
“Blockchain technology, which is decentralised is a large and complex entity, which cannot be tamed by the actions of individual countries or single organisations, as we saw with Facebook banning Cryptocurrency adverts earlier this week.
“Blockchain is revolutionising the way the financial world operates, with many positive benefits for society and organisations across the world and I have a feeling India will reverse their decision soon just like South Korea recently did.”
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.
