Bitcoin losing the interest of cyber-criminals! Does it mean that my cryptocurrency is safe?
Cyber-criminals are finding new opportunities after testing Bitcoin shores. Reason? Lack of regulatory support.
Deputy Governor of Reserve Bank of India, Mr. R. Gandhi also warns the users of bitcoin in the cause. This is the prime reasons why digital currencies which are not backed by government will fail to achieve mass adoption!
Similar views are of the head of the International Monetary Fund. The cryptocurrency has received positive views from Japan. The country has given bitcoin official sanction, so a sheer ban may not occur. Still, investors should be beware of the regulatory risks that are associated, given the lack of clarity from Indian regulators and administrators.
Bitcoin prices increased upto 14 times in 2017, while they once even smashed past $19,500 on December 17. On January 6, bitcoin traded around $16,400 on Luxembourg-based BitStamp and around Rs. 11.10 lakh on Zebpay (nearly 7% more than the international price).
About the massive rise of bitcoin prices, Nair (vice president, marketing of Unocoin) said, “Bitcoin prices are determined basically on the demand and supply. As most of the folks understand about Bitcoins and its functioning, they may want to hold some bitcoin and this leads to an increase in the demand for bitcoin and it’s resulted in the increased prices. I accept that there are most of the people buying bitcoin without even knowing about the consequences but how much of it contributes to the price rally is debatable.”
The Central finance minister Arun Jaitley announced in Rajya Sabha (Parliament) that bitcoin is not a legal tender.
The Reserve Bank of India recently released warning on the investors interest in the bitcoin. The air regarding the government stance is right before us.
The lack of regulatory support and legislative control has made Bitcoin a dying investment. This means that government has driven a death nail in the cryptocurrency coffin.
Moreover, European Central Bank vice president even went to the extent of comparing it with Tulip mania. On the other hand, Prize winning economist Joseph Stiglitz suggested that the bitcoins be outlawed. On December 29, finance ministry even stated that investing in cryptocurrencies is like being a victim of fraud schemes.
There are several experts who called bitcoin a ‘bubble set to burst’. Apps like paytm make the payment process more manageable. Hence, the reliance on Bitcoin is reducing despite the safety.
People like the lower cost it brings to processing sales, unlike the “extra fees” charged by credit card companies.
Why are bitcoins losing popularity?
- The high price and market volatility affects the demand for bitcoins. People are already working on sustaining output of the currency but to no avail.
- The ethereum technology is far more stable form of crypto-currency deals. (This is why hackers also love ethereum).
- The laws worldwide are taking a tough stance against the Bitcoin. The exchanges dealing with the currency exchange are also facing issues.
- It is believed that the crooks are staying away from Bitcoin for taking ransomware payments.