At that time, the worldwide crypto market capitalization had risen 1.23 percent over the most recent 24 hours to remain at $2.60 trillion. Bitcoin, trading at $57,517, also saw an increase in its market dominance by around 0.28 percent over the last day to reach 41.92 percent. Concerning major cryptocurrencies, Bitcoin rose by 2.12 percent, while Ethereum ($4,303) rose by 1.10 percent.
Will uncertainty over India's crypto regulation affect job creation?
The continuous uncertainty around India's plan to regulate cryptocurrency in the country is causing concern over the effect it could have on job creation. While a segment of the industry said that it could drive startups out of India, affecting new job opportunities, others have pointed out that it is probably not going to affect the talent stream. The crypto industry as of now employs around 50,000 people and could possibly create 8,00,000 jobs by 2030.
Explained: All that we know about the upcoming Cryptocurrency Bill 2021
Industry experts and lawyers expected the regulations to ensure better monitoring of crypto transactions and rules around punishments for fraudulent activities. Clarity was also expected on how crypto assets and related services would be taxed. With 2 crore Indians invested in cryptocurrencies, and their holdings adding up to $4-5 billion as per industry estimates, many were worried about what could come next.
Cryptocurrency Bill: Why investors should not panic
Even if cryptocurrencies are restricted, an exit window may be given to investors. Whatever the government decides on cryptocurrencies, many experts were saying that a complete ban looked unlikely. They may not allow cryptocurrencies to be used as legal currencies, which was not being done in India at that point.
Most existing cryptocurrencies will not survive, says Raghuram Rajan
Former Reserve Bank of India (RBI) governor Raghuram Rajan believed that out of the 6,000-odd cryptocurrencies in existence at that time, most would not survive. Only a few, or probably a modest handful, would survive, Rajan said. If things have value only because they will be pricier down the line, that is a bubble, he told CNBC-TV18. A lot of cryptos have value only because there is a greater fool out there willing to buy.