While India debates legalising, or banning, cryptocurrencies such as Bitcoin and Etherium, Bitcoin is surging in the last couple of weeks.Just like other ups and downs, it is not clear what is behind the latest surge but if you hold Bitcoins you will be happy to know that the crypto coin is once again above the $50,000 mark.
In the past 24 hours alone, Bitcoin has risen 1.89 per cent.It is currently trading for Rs.40,20,591 ($50,900) in India.As 2021 comes to a close, let’s take a closer look at the journey of Bitcoin and the major events that affected this year.
2021 in retrospect Tesla and SpaceX CEO Elon Musk publicly endorsed Bitcoins towards the end of January, and in February he even added that he was “late to the party,” but that he was a supporter.He then announced that Tesla would accept Bitcoin as payment.This sort of started a rally for Bitcoin.
In March we witnessed a surge in Bitcoin, with prices eventually breaking the $60,000 mark.In April Coinbase, one of the world’s largest providers of Digital Wallets service, went public, boosting investor confidence in cryptocurrencies.
However, in May things started going downhill for Bitcoin, as Elon Musk who had endorsed Bitcoin just 3 months back, said he was apprehensive about Bitcoin due to environmental concerns.
Around the same time, China came out and warned investors they would have no protection in crypto markets.Bitcoin prices slumped to $37,000.
In June, the President of the Central American nation, El Salvador announced that he will make Bitcoin legal tender in the country.This goal is achieved within 90 days.However, the hype from El Salvador did not cause the momentum push Bitcoiners were hoping for and prices fell below the $30,000 mark.
There was a steep rebound in Bitcoin prices in August with the cryptocurrency trading at $47,000 towards the end of the month.By September 7, Bitcoin had crossed the $50,000 mark.After that, The People’s Bank of China reiterated their ban and declared participation in the financial revolution as “illegal activity.” Bitcoin ended September at around $41,000 price level.
By October El Salvador onboards 3 million people with the Chivo wallet, a remarkable achievement in a country of roughly 6.5 million people.October ends with Bitcoin close to the $60,000 mark.The cryptocurrency hit an all-time high of $67,500 on November 8, however, it ended the month on a flat note with the price level hovering around $57,000 at the end of November.
In December, Bitcoin fell again hovering around the $46,000 mark from December 10 to 17.
From December 17, however, Bitcoin prices have been on a rise again with Bitcoin crossing the $50,000 mark on December 23.
How will 2022 pan out In the last 52 weeks, Bitcoin’s price has risen by 72 per cent.Bitcoin began in 2021 trading around $32,000 per coin after it surpassed its 2017 all-time high of $20,000 towards the end of 2020.2022 is expected to bring further growth to the cryptocurrency market and to Bitcoin in particular.
But as far as India is concerned, a lot depends on the regulatory framework.It was expected that the government will bring a law to regulate crypto-currencies in India during the Winter session of the Parliament.But that didn’t happen.
Now, the bill is expected to be introduced next time Parliament holds its session.That will be in early 2022.And the future of Bitcoin in India, as well as globally in terms of its price, is bound to get affected by what the government proposes in that bill.For now, not much is known about it.
Though, chances are that India will regulate Bitcoin and other crypto-currencies rather heavily, even if it doesn’t outrightly ban them.
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