Drafted by Shubham Sharma.
Amid of corona crisis when all the market and business froze due to lockdown all over the world. Ultra Rich peoples and many central banks all over the globe started influencing the CRYPTO market like a whale and become potential manipulators in currency valuations. Central Banks injected $9trillion and the Total wealth of billionaires rose by $5 trillion to $13 trillion in the past 12 months(economics times). They entered to keep the growth alive to overcome the crisis of FINANCIAL MARKET.
AND now when again the market started accelerating, these billionaires started coming out of the CRYPTO MARKET which leads to crashing the whole market, and all the Small investors all over the world got badly affected. This scenario again causing the same situation after 29 years OF HARSHAD MEHTA INDIAN STOCK MARKET EXCHANGE 1992 who disrupted the stock market, defrauding investors of over ONE billion USD. Hopefully, due to government intervention and regulations, things started to get better with time.
HOW PEOPLE GET ATTRACTED?
Many big crypto players suddenly pool too much money into the market and the market rises suddenly and keeps the acceleration for time being.
Then these big crypto players influencing the new players to pool more money into the market and when the market goes up these big players take out all the money from the market and the market goes down and small investors face a big loss. This happens because people have less knowledge about the market certainty and there is no central bank or government control over the cryptocurrency. And there is no government regulating website or app.
IS CRYPTOCURRENCY GOOD OR BAD?
CRYPTO world runs by private players which is totally out of government administration.
This leads to tax evasion, many crypto players don’t give income tax even they are earning good, which is bad for the economic growth of any country.
Cryptocurrency can be used for money laundering or illegal purchase and could be risky to investors like it is happening now. This is high-risk trading.
CRYPTO IN INDIA
In 2012-2017 cryptocurrency steadily gain traction. This period also sees cryptocurrency exchanges mushroom in India including Zebpay, Coinnsecure, Unocoinn, koinex, and pocket bills now many are there like wazirex, binance, etc. In April 2018 RBI issues a circular to all the financial institutions that are dealing in virtual currencies. With this trading volumes fall by 99%, and by August 2018 about 95% of jobs vanish. In march 2020 The supreme court strike down RBI’s ban on crypto, and bitcoin jumps more than 700%. In January 2021 the government says it will introduce a bill to create sovereign digital currency and simultaneously ban all the private cryptocurrencies. Then in May 2021, many big investors like ELON MUSK take off their hands from cryptocurrencies which again shows the crash of the crypto market. This Crypto market has so much uncertainty because there are no Government rules and regulations to handle these kinds of situations and because of this many small investors face big losses.
People in India easily got manipulated by some Traders. They say give me the money I am going make it more By investing in bitcoin and they show some data that they are getting too much profit. Some people give their money and initially investors give them some profit to win the trust, But when people starting giving more and more and the market goes up then suddenly some big whale take all their money out which make the market down and small investor face big losses. Then traders started consoling the investor don’t worry the market will again going to rise and all these things.
First of all, some people started taking the crypto market as a stock market.
The stock market is regulated by SEBI which is a regulatory body under the jurisdiction of the ministry of finance, GOI. But crypto is regulated by private players Who can come and go any time they want leaving their investor’s wallet empty. Many people leaving their jobs and work, started giving their full time on the cryptocurrency market.
People should see these HIGH-RISK factors and let the GOVERNMENT make some regulatory body under which it works. People must not believe these traders who are saying like 25 DIN MEIN PAISA DOUBLE.
