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Rakesh Jhunjhunwala thinks Bitcoin should be banned in India

Bitcoin has a very polarising nature. On the one hand, the cryptocurrency has enthusiasts that are investing every dime they have in it, while there are people who won’t invest a single penny in the same. For example, Michael Saylor, CEO of Microstrategy, has invested 95% of his company’s cash and convertibles in Bitcoin. On the other hand, Rakesh Jhunjhunwala, a name every Indian investor knows about, said, ‘I won’t buy it even for $5’.

Rakesh Jhunjhunwala on Bitcoin!

Rakesh Jhunjhunwala

Image Source: CNBC TV18

Rakesh’s view on cryptocurrency can be very polarizing and debatable. The individual said in an interview that he thinks only the sovereign has the right to create a currency. He also talked about Bitcoins’ huge volatility and said asked, “Can it be considered as currency?”. Even Bitcoin bulls know that the huge volatility of the currency is a problem. It makes it very difficult for it to be used as an alternative to the dollar. Jhunjhunwala also said that if the dollar moves even by 1-2%, it becomes news, but Bitcoin fluctuated 10 times more than that every single day.

Rakesh Jhunjhunwala made it very clear that he will not invest in Bitcoin even if the price goes up. He believes that he doesn’t need to be invested in everything. There have been many times in the past when he missed on rallies just because he didn’t like it. Rakesh Jhunjhunwala went on record to say that the regulators must ban crypto in India. And I think he went a little too ahead of himself. Just the fact that he doesn’t like it shouldn’t make investing in cryptocurrency a wrong thing.

Bitcoin’s nature

Bitcoin

The polarising view on Bitcoin comes from a lot of factors. As far as I can understand, it has to do with the tanking of the cryptocurrency in 2017 and the huge volatility. Even though companies have started investing in Bitcoin, no company has test started using it for payments. Tesla, upon its $1.5 billion investment in BTC, did talk about accepting payments with it. But after that, no reports regarding the same were out. We have to understand the fact that Bitcoin is a good investment, but its volatility makes it impractical to use it as a currency.

At the same time, Bitcoin is decentralized and hence is free from regulation by the government. This makes it impossible for them to track any illegal operations or purchases made with it. The Indian government also plans to ban crypto for this specific reason in the country. As ultimately, there is no way of tracking it. But till now, there has been no news or confirmation regarding the same.


Do you think that Rakesh Jhunjhunwala just went too ahead of himself on asking the government to ban crypto? Or do you think that he is right? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

Also Read: MicroStrategy buys $1 billion worth of Bitcoin in the latest dip.

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