Bitcoin regains some lost ground

After reaching $4,960 a fortnight ago, the bitcoin’s price nosedived to the $3,000 level last Friday when one Chinese bitcoin exchange said it was closing its operations. The move followed the Chinese authorities’ decision to ban initial coin offerings, something like initial public offerings (IPOs) for shares. 

However, on Tuesday, the bitcoin was back above $4,000. In India, the world’s first and most popular virtual currency, which fell from a high of Rs 354,000 to Rs 212,000 on Friday, jumped to Rs 280,000. Explaining the roller-coaster ride, Sandeep Goenka, founder, Zebpay, India’s largest bitcoin exchange, said, “It shows how resilient bitcoin has become globally.” 

JPMorgan Chase CEO Jamie Dimon recently called the cryptocurrency “a fraud”.

However, cryptocurrency experts say one or the other global leader earlier predicted that the bitcoin would die, but its market went on growing, instead.  A month ago, a BBC correspondent first compared the bitcoin with a tulip mania seen in the 17th century. The same observation was repeated later by others. However, Sandeep said, “The sharp surge in (the bitcoin) prices would anyway be looking for an occasion for correction, which happened.”Bitcoin prices in India have been quoted at 8-10 per cent premium as it doesn’t mine the cryptocurrencty. No one is sure which way prices will move, but long-term investors are not much worried. In January, the bitcoin’s price was around $1,000. 

China planning more measures against the bitcoin has not dampened investor sentiment. India also played its role in the bad news flow when reports of India planning its own cryptocurrency came in. However, an industry leader said, “Even if India comes out with its own currency, the bitcoin will have its acceptability, being global in nature.”