India hints at cryptocurrency, China to shut Bitcoin exchanges

India hints at cryptocurrency, China to shut Bitcoin exchanges

For those who believe in Bitcoin's long-term success, sudden drops in value present a potential buying opportunity.

John McAfee on Wednesday challenged JPMorgan CEO Jamie Dimon's skepticism of bitcoin.

Sen said the fiat cryptocurrency was a digital currency that would be issued by the RBI in place of the physical one that was being used at present, according to the Economic Times. They are not printed or minted but produced by technocrats globally.

Trading volume has fallen as regulators tightened controls. The space has come under increased scrutiny in 2017 following a boom in raising money via ICOs, which has already passed $1.7 billion this year, and soaring valuations for bitcoin and Ethereum.

After a vertiginous climb to record highs close to $5,000 earlier this month, bitcoin had plunged nearly 40 percent in the 12 following days, with the sell-off driven in large part by fears of China cracking down on the market as well as a warning from JPMorgan CEO Jamie Dimon that bitcoin was a "fraud".

And China is not the only country watching Bitcoin. While the country has long held a negative view of the digital currency, a report last week claimed that the Chinese government was planning to shut down local bitcoin exchanges. "These are just road bumps as regulation and innovation need time to sync well with each other".

The crypto-currency sank late Thursday. This was only the first wave to push the Bitcoin price down, though. However, he said he would consider investing in companies that use or trade in bitcoin.

The bitcoin price was down 5% at $3,071 at 1036 GMT on US exchange Bitstamp.

"Speculators are out of the market now. Bitcoin prices will gain in the near term", Shah added.

The information coming from China paints a bleak picture. The U.K. Financial Conduct Authority, the country's top regulator, warned this week that investors in the virtual currency should be "prepared to lose your entire stake". It was expected that influential governing bodies like those in China would step in and take some of the heat out of the bubble, leading to speculation that such activities help correct the market back to more realistic valuation.

BTC China, one of the nations' biggest online exchanges, said Thursday it will immediately stop accepting new account registrations. "But the Reserve Bank of India needs to give its stamp to make this investment valid".

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