Bitcoin Scarcity Is Not Natural – It Is Created – There might be a Digital Crypto RupeeJuly 23, 2019
India’s cryptocurrency attitude has been revealed in the IMC report, which stated, “It is essential to note that as of a date no country across the world however treats virtual currencies as legal tender.”
“Banning of Cryptocurrency and Regulation of Official Digital Currency Act, 2019” makes anything related to cryptocurrency not accepted in the country.
Penalties can be three times more than the amount a person earned from cryptocurrency. If this bill is executed, India will be the first country to ban their citizens from using or holding cryptocurrencies.
The committee which has proposed these regulations are the most influential group to date. However, they are not against establishing a “Digital Rupee” system, which, when happens, will be the only legal crypto tender in India.
The value of the Bitcoin is, in reality, very lofty because the investors view the supply of the Bitcoin as being limited to be 21 million tokens. This limitation is not like the limit in the quantity of natural gold, but it is due to the restriction on the programming code not to mint Bitcoin more than to the value equivalent of 21 million tokens. However, if the Bitcoin community would arrive at a strong consensus, then the token count can be increased. Therefore, the scarcity is not natural, and man creates it.
With the existing token count of Bitcoin, it can’t be challenging the fiat currencies. However, the comparatively low supply of the coins is one of the reasons for the high price for the tokens. However, if the token count is increased, this will lead to inflation, and eventually, the amount will be reduced. Therefore, Bitcoin can have a perceived “scarcity or utility” but never both.
Over the past 24 hours, ETH has lost nearly 2.57% of its value. The break was above $230 over the weekend session, but the price did not make its way to the headway. Instead, the price went down to $230 and is looking for support at $220. The current trend is particularly bearish. Therefore, before a significant correction can occur, the price might test the lower levels at $200.
Ripple is struggling to sustain the price past $0.32. The price opened at $0.3305, and the XRP/USD went down by 1.64%, and it was exchanging hands at the current market value at $0.3251.
The much-awaited lunch with Warren Buffet is nearing, and Justin Sun will be joining the lunch on July 25, 2019, with a list of other CEOs.