There is no great opportunity in crypto!
Bishnoi explains, “About three years ago, when small and economically less educated investors across India were in a state of euphoria over the ‘magnificent’ opportunities that appeared in cryptocurrencies, I reached out to the country with financial intermediaries.held a special personal roadshow across the country and cautioned them about the risks of investing in a non-existent asset like crypto.My main concern was not that crypto had an impact.Investors were subscribing in technical jargon.
My main concern was what would happen to the target of investors who bet or trust in them.And who will bring them justice if they lose money?”
I don’t even know where your money went
He says- “My reasoning is quite simple: Cryptocurrency is a system that allows large amounts of money to be transferred across country borders, without a trace and for whatever reason.Don’t know about legitimate commercial enterprise that needs such a facility.And small investors, who are co-investing with these illegal ventures, were bound to get a shock sooner or later.”
Government has also taken cognizance
The Government of India has also taken cognizance of this.
But by declaring it illegal by the government of one country, only small investors of that country are more likely to suffer.Perhaps that is why the Government of India decided to impose a tax on profits made on crypto assets, as a punishment, for illegitimate enterprises and holders.This move also proved to be correct.Cases of money laundering against crypto systems are increasing everywhere and enforcement agencies are flooded with such cases.It is also making small investors wary of crypto.Money laundering cases are coming in front of hundreds of crores to thousands of crores.It is difficult to estimate the real number.But everyone knows that these numbers are huge and the trouble for small investors only gets compounded by being with such ‘illegitimate investors’.
What is the real need of alternate currencies like crypto?
It is possible that all the big investors of the world would have anticipated a sharp decline in their portfolio considering that the world economy has seen a huge supply of major sovereign currencies in the last 14-15 years.
, because now central banks everywhere are implementing withdrawal of infusions to rein in inflation.And as the return of currencies picks up, investors’ portfolios take a beating.In times like these, investors look for alternative currencies that are not linked to global currencies and keep their investments in a safe haven.In the past, gold has always been the universal global substitute currency.Kinsotu gold is expensive nowadays.And it’s perfect for them as far as crypto is concerned because they don’t need real cost to create another new crypto brand.Obviously not all investors have chosen crypto, many have chosen gold as well.Even all the central banks of the world have bought gold in large quantities, due to which gold has also increased.
But, this is not enough as a lot of the liquidity that comes in gold has gone to cryptocurrencies instead.Crypto has provided money launderers with many facilities that gold could not.But crypto has also created new headaches.First, volatility in it and secondly to come under the radar of regulatory agencies.Chances are that crypto is declining and will falter more as it progresses.Sovereign people or countries are never going to give up their absolute right to print money and gold has been the only universal currency of mankind for over 10,000 years and it is not going to give up its claim.
Currency fight will intensify
Looks like there is going to be a currency fight now.
Clearly the US dollar is going to continue to dominate world trade and crypto on the other hand will work hard to maintain its ambiguity, and gold will continue to shine.Even when you try to strike a tricky balance between these three moving boats, there’s a lot to chew.Almost every time in modern world history when sovereign currencies other than gold faltered, it became imperative to rely on gold again.But unfortunately before a major war, mutual de-recognition of currencies is impossible, and hence the need for a universal asset like gold.Although it may seem a predictable one: the war is already on our heads.
We will just have to wait and see if all sovereign leaders in the free world are as smart as they are decisive.
In any case – whether the situation of war increases or decreases, the ship of crypto seems to be sinking.