Russo-Ukraine war, global inflation and interest rate hike in the US are having a bad effect on bitcoin. This is the reason why this world’s most famous cryptocurrency has broken almost 50 percent from its top.
Bitcoin had set a record high of $68,789 per unit (about 52.93 lakh Indian rupees) in November last year. Since then it has continued to decline steadily. Meanwhile, due to the negative conditions created globally, it was trading at $ 34,587 per unit (about 26.61 lakh Indian rupees) on Sunday, down about 50 percent. Thus, in the last six months, the price of bitcoin has decreased by $ 34,202 per unit (about 26.32 lakh Indian rupees).
25% drop so far in 2022
2022 has not proved to be good for bitcoin. So far this year, it has fallen by about 25 percent. It was trading at $ 46,726 per unit on January 1, 2022, falling on Sunday evening at $ 34,587 per unit. Thus in 2022 the price of bitcoin has fallen to $12,139 per unit.
Risk of anonymity in use of blockchain technology: Sitharaman
Finance Minister Nirmala Sitharaman said at an event of the National Securities Depository Limited (NSDL) on Saturday that ‘anonymity’ in blockchain technology is an “inherent risk” and there is a need to exercise caution in view of the increasing use of this technology. Is. Along with this, Sitharaman made it clear that using ‘Distributed Ledger Technology (DLT)’ ie ‘Blockchain’ is completely ‘inevitable’ and the government also supports its use. Actually, India is preparing to bring its own digital currency CBDC which will be based on blockchain technology. Sitharaman had announced the introduction of CBDC while presenting the budget for the financial year 2022-23.
Other Major Cryptos Decline
All crypto related activities may attract 28% GST
The central government can bring all activities related to cryptocurrency under the purview of Goods and Services Tax (GST). Actually, the government has constituted a parliamentary committee to bring cryptocurrencies under the ambit of GST. This committee seems to be unanimous in implementing the maximum GST rate of 28 per cent on all activities related to cryptocurrency.
In this, there seems to be an agreement to impose tax on the transfer of goods and services through cryptocurrencies. All the members of the Parliamentary Committee are of the view that cryptocurrencies should be treated at par with lottery or gambling and that GST should be levied at the same level as the tax levied on them.