The craze of investors towards BitCoin is still there around the world, but they have been skeptical about their investment due to the decline in it for some time. It has continued to fall since reaching the record level of 65 thousand dollars in mid-April of this year. In recent times, it has fallen significantly due to the special announcement by Elon Musk, one of the world’s top rich and regulatory decision of China. According to Coindesk, the price of bitcoin is currently $ 36,426.86 (Rs 26.6 lakh), which is a record price of $ 64,829 (47.23). Lakh rupees) is about 44 percent cheaper. Experts believe that the reasons for which bitcoin is declining, if they remain, then there is little hope of a rise in its price.
Bitcoin prices rolled for these reasons
- Earlier this month, Elon Musk, CEO of giant Tesla, scrapped the payment option for customers to buy their company’s cars via bitcoin. Musk took this decision in view of concern about the environment. Only after Musk’s tweet, Bitcoin prices fell by 17 percent and its prices were reduced by 46 thousand dollars.
- A few days ago Musk suggested that Tesla could liquidate its bitcoin holdings, meaning that it would not invest in bitcoin. Earlier this year, Tesla had invested $ 150 million (Rs 10,968 crore), of which 10 percent has been sold by Tesla.
- According to the news of the routers, China has banned crypto transactions. Now in China, banks and online payment platforms have banned cryptocurrency related services and warned investors against crypto trading. Under this ban, services such as registration, trading and clearing and settlements of cryptocurrencies have been banned in China.
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These are the concerns regarding returns from bitcoin
- Due to the reason Elon Musk has refused to take payment in Bitcoin, there has been a growing concern in the minds of investors. According to data released by the Cambridge Bitcoin Electricity Consumption Index (CBECI), 75 per cent of the countries in the world consume less than the amount of electricity consumed in their mining every hour. Musk refused to take payment in this, citing the chart associated with this data. According to Dutch bank analysts, if Bitcoin were a country, then every year it would have spent energy equivalent to a country like Switzerland and would have been ranked 27th in terms of energy use. As concerns about global warming are increasing around the world, it is understood that if other companies like Musk pull out of it, it could fall further.
- Other crypto transactions, including bitcoin, have been banned in China and investors have been warned against it. According to some estimates, mining in China is a huge business and 70 percent of the crypto supply worldwide is mined in China. In such a situation, there is a fear in the minds of investors in the event of a ban on it in China.
- Similarly, the situation is also in India. However, there is no regulation related to this here at the moment. However, the RBI has already cleared its position on this and also issued a notification to ban it on concerns such as money laundering and terror financing, which was rejected by the Supreme Court last year. Now the central government is going to bring a bill regarding cryptocurrency in which barring the crypto of RBI, other private cryptos will be banned, but by when this bill will come, the situation is not clear.
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Expert advised to stay away from investment
Bloomberg bitcoin analysts claimed that when bitcoin prices were close to 54 thousand dollars, its price could reach 4 lakh dollars. Analysts had estimated this based on the upsurge in its prices in 2013 and 2017. Bloomberg’s Monthly Crypto Outlook, which was released on April 6, described the future of Bitcoin and cryptocurrency as being better, but Musk was also positive at the time. Now gradually the situation is changing, so in such a situation nothing can be said about bitcoin. There has been a tremendous decline in bitcoin. In April, it fell more than 70 percent on a single day in April and its price fell from $ 233 to $ 67.
When it was discussed with SEBI Registered Investment Expert Jitendra Solanki, he said that he would not advise to invest in Bitcoin as nothing can be said about it. Those who want to invest in it, they can do it at their own risk, but if you get a profit in some time, then you should exit.