Rule on Cryptocurrencies urged by India’s Supreme Court

Indian Government is aimed to set the control in the sphere of cryptocurrencies in the best interest of all the participants
10 April 2018   1145

The Reserve Bank of India since 2013 has been publishing warning recommendations about cryptocurrency. Nevertheless, the Governmental directions towards digital money would only relate on the swindlers and scammers who will flout the laws of the country.

Indian Ministry of Finance had also founded an inter-disciplinary committee, which  was also stated to examine the regulatory base with consideration to Virtual Currencies. The committee included representatives from different Government structures, especially stock exchange board of India and Reserve Bank of India (RBI).  

In the middle of 2017 bitcoin became extremely demanded because of the growth in price and huge benefits earned by the investors. Together with the bitcoin`s increased popularity, crimes and fraud also enlarged and then began the period of knocking the doors of Supreme Court by activists.

The first Public Interest Litigation (PIL) was offered up before the Supreme Court by Mr. Vijay Pal Dalmia Advocate, by way of Writ Petition filed under Article 32 of the Constitution seeking a ban on cryptocurrencies` sale and purchase (including bitcoin, litecoin, etc) in India. Finally the RBI instead of clarifying its position on the issue evasively replied while giving information about the appointment of Inter-Disciplinary Committee by the Ministry of Finance.

Two Public Interest Litigations (PIL) are waiting for adjudication before the Supreme Court since November 2017 and remarkably the Government has not revealed its stance before the Supreme Court whether it is in favor or against the Crypto ecosystem.

The new RBI notification severing fiat-crypto ties will probably be challenged in the Court of Law. Today the parties with contesting interests are face-to-face before the Supreme Court, a gavel stroke of which will determine the future of cryptocurrencies in India.

The atmosphere on the social media specifies that the Crypto community is hopeful of a postponement from the Supreme Court. And like in other statement of John McAfee, “You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust”.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   63

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.