Bitcoin had a hard time last month. Bitcoin prices have been falling and some investors were nervous about it. However, the whale account that was created almost nine years later shows why it is important to have a HODL. The account contained 900 coins and has been inactive since 2012.
On August 17, 2012, the total value of these 900 coins was $ 12,778 (approximately Rs. 99,34,356). It was recently reactivated and reached $ 33 million (approximately Rs 242 crore).
Investments in this mysterious account have grown by an overall 2000% over the past nine years. This is the tip of the iceberg that most people need. If you are confident in your investment, don’t worry and keep investing for a long time, you are likely to get a return. It not only works for the crypto market but also for any investment.
It is still uncertain whether the account holder reactivated it, or whether it was accessed by someone else. But, it also points out the importance of withholding your investment in the long run.
At the time of writing, a bitcoin was worth more than Rs 28 lakh. This is despite the decline in the last month.
This is not the first whale account that has come to the attention for its holdings. Mysterious Wheel has added 36.7 billion Dogecoins to its portfolio since 2019 and now accounts for about 28% of total coins in circulation. A Dodgecoin is valued at $ 0.393 (at the time of writing), bringing the total value of this mysterious whale’s to14.7 billion.
Although cryptocurrencies are gaining popularity, there is concern about their energy consumption and possible impact on the environment. Iran recently banned bitcoin mining for four months after blackouts in various parts of the world.
But in India, The Reserve Bank of India issued an explanation around bitcoin and cryptocurrency trading, informing banks that they could not warn consumers against trading using the old order. The explanation has come as a relief to the crypto market which is dealing with a lot of confusion and uncertainty in India. The RBI’s statement came in response to a warning issued by banks to their customers, citing an old central bank order not to invest in cryptocurrencies.
Among the banks issuing the warning were State Bank of India and HDFC Bank. The central bank said its order had been set aside by the Supreme Court and could not be cited by banks. This is a huge vote of confidence in crypto by the RBI amid reports of a complete ban on crypto trading in India.
Earlier this year, there were signs that the Indian government was planning to ban cryptocurrencies. A bill in this regard was also proposed before the Union Budget 2021, however, it was put on hold following requests from the crypto industry. The government later formed a committee to make recommendations. This was followed by reports that the RBI may bring in its own digital rupee.
Although the RBI has given relief to crypto investors, it has proposed banks and crypto platforms must ensure that these transactions are not used for fraudulent activities and tax evasion.
It has asked banks to comply with the responsibilities of your customer (KYC), anti-money laundering (AML), counter-terrorism financing (CFT) and prevention-regulated entities. Perform prompt action due to customer’s requirements in accordance with the standards of Money Laundering Act, (PMLA), 2002.
Banks have also been asked to ensure compliance with the relevant provisions under the Foreign Exchange Management Act (FEMA) for remittances abroad.
Investors should know that this is not the last time you have heard from the RBI on cryptocurrency. In the last six months in India, Bitcoin, Dogecoin, Ethereum and other coins have become very popular and millions of new investors have joined the crypto wave. The RBI and government have no other option but to come up with regulations to provide security to these investors.
It is very unlikely that Indian government will stick to its initial plans to ban crypto. Instead, we should expect to hear more of it in the coming months. For now, the future looks bright for the Indian crypto industry, perhaps for the first time.