El Erian says he sold his bitcoins two early.

Bitcoin ban in India - RBI and the central government’s point of view on cryptocurrency A few months ago, there was news that bitcoin would ban in India. Still, the government of India has taken action against money laundering and bitcoin fraud. A few years ago, when bitcoin was at a low price than today's price, there was an announcement about the bitcoin banning. Many Indians had sold their bitcoins and other cryptocurrencies because they feared that their money would lose, but bitcoin did not entirely ban. There is a significant impact of the government decision on bitcoin’s value. There are a lot of announcements and fake news about bitcoin banning and not banning it. This article will explore the facts about the government’s decisions about bitcoin and other cryptocurrencies. So without wasting time, let’s explore the facts about bitcoin banning in India. Bitcoin in brief: Before going further, first, let us explain briefly about bitcoin. Bitcoin is an unregulated cryptocurrency that means anyone around the globe can send and receive and use it in any way they like. So bitcoin is a non-touch cryptocurrency available in digital form and can be stored in only virtual storage, known as the bitcoin wallet. Unfortunately, in some countries, bitcoins get banned because bitcoin is a non-controllable currency. As a result, many people started doing illegal activities through bitcoin. RBI worries about the cryptocurrency: The central bank of India worries about bitcoin and other cryptocurrencies because bitcoin is not a regulated currency. Bitcoin is banned in some countries because the government and other third parties cannot control it, such as they cannot trace the transaction. They cannot deduct the tax of bitcoin users and many more things the government cannot do in the presence of bitcoin cryptocurrency. RBI worries about cryptocurrency because many people have started investing and trading in bitcoin. They are not depositing their money in bank accounts. They are not investing in fixed deposits, PPF, and many more funds. The RBI announced that banks are not allowed to use cryptocurrency. When you use a bitcoin exchange, then you must add a payment method to the bitcoin exchange. The RBI will restrict the banks from using the crypto transaction that means you cannot use the banks for bitcoin transactions. But a few years ago, the government of India neglected the RBI’s rule about cryptocurrency. Now there are a lot of banks that are connected with the bitcoin or cryptocurrency exchanges. You can also connect your bank account with a bitcoin exchange, and if you want to check, click here on Oil Trading software The central government point of view on bitcoin cryptocurrency: In the recent sitting of the prime minister of India, Modi announced that bitcoin is a volatile currency, and the price fluctuates every second. Bitcoin is an unregulated currency that means there is no certainty that bitcoin will work in the future or not. There are a lot of illegal and money laundering activities with bitcoin. So they are strict on using cryptocurrency instead of entirely banning bitcoin. So it means that bitcoin is not going to be entirely banned. Still, some new rules and regulations will be announced, and you must have to follow these rules and regulations if you want to invest money in bitcoin. How people do illegal activities: Bitcoin provides privacy to bitcoin users because it is a decentralized system, and many scammers and people are taking advantage of bitcoin for illegal activities. No one can track or trace the bitcoin transactions because it will not show the personal details of the bitcoin sender or receiver, unlike fiat currency transactions. People sell illegal goods and services, and transactions happen through bitcoin cryptocurrency, so the government cannot trace the transaction. People also do money laundering activities by transferring bitcoin to another bitcoin wallet. There is no restriction to creating bitcoin wallets, which means you can create bitcoin wallets according to your choice. You can buy bitcoin through one bitcoin wallet and send it to another or third bitcoin wallet. It will be challenging to find where the transaction belongs, and your privacy will be anonymous. You can withdraw money from the exchange or sell bitcoin to your local bitcoin buyer, which is the best way of money laundering. So the government makes the rules and regulations to prevent these types of fraud.

In a recent interview, El Erian says that he sold his bitcoins two early that he bought in 2018. Many people buy bitcoins at the lowest price and sell when the price increases a little. That is the biggest mistake because bitcoin is a volatile currency, and there may be highs and lows. If you are an investor, then you do not need to worry about the market going up and down because cryptocurrency is the only market that fluctuates very heavily. However, it is also the main reason behind the wrong decisions. This article will discuss El Arian’sArian’s bitcoin investing, what you can learn from him, and his opinion on buying bitcoin. So without wasting time, let’s explore the story of El Arian.

Bitcoin in Brief:

Before going further, let’s take a quick look at the bitcoin currency to understand well. In the Bitcoin Pro App you can use Bitcoin for multiple purposes such as investing, earning, buying, selling, sending, and receiving like fiat currency, accepting, etc. That is why bitcoin is very advanced than fiat currency because fiat is only a medium of exchange, but bitcoin can do multiple things.

Who is El Erian?

The full name of Erian is Mohamed A. El Erian, and he is the president of Cambridge and Queen’sQueen’s college. He is also the chief economic adviser of Allianz. He is a well-known American economist and businessman at the age of sixty-three.

He bought bitcoins in 2018:

He bought bitcoin in 2018 when the winter was coming. He purchased an unspecified amount of digital coins, i.e., bitcoins, without knowing that the price of bitcoin would reach the highest level. On 14th December 2018, the price of bitcoin got down up to 3,183 dollars. At that time, El Erian had purchased bitcoin at $3,000, a nominal amount compared to today’s value of bitcoin. He added an unspecified amount of bitcoins to his bitcoin wallet and held it for a limited time.

On 4th December 2020, the price of bitcoin increased up to 19,135 dollars that were very high for the investor of 2018. El-Erian was confused about whether he should sell his bitcoin or not. He thought that bitcoin is a very volatile currency that means the price of bitcoin would decrease or increase heavily, and I earned enough profit. Then he sold his bitcoin when it reached up to 19,000 dollars, and that was the biggest mistake. After selling the bitcoin, the price of bitcoin started increasing rapidly, and he was waiting for the price to decrease at some point, but the price did not go down. The price reached up to 67,000 dollars last week that is the highest peak of bitcoin value ever. The current price of bitcoin at the time of writing this article is 60,000, which is low compared to last week’s data. It decreases from 4 to 5 per cent, that is four thousand dollars to five thousand dollars.

His opinion on when to buy bitcoins?

According to El-Erian, three types of bitcoin buyers is given below:

  • Investors
  • Professional diversifier
  • Speculators

Investors:- Investors are those who buy and hold bitcoin for the long term. For example, you bought bitcoins today, and you send your bitcoins to a safe wallet like a paper wallet or hardware wallet for long-term holding. Now you are not checking the bitcoin up and downs because you are bitcoin investors that means you will hold it for five years whether the market is up or down. Investors are the strongest player in bitcoin currency because the more investors are on the network, means supply will be in limit. Therefore, if the demand increases, the price of bitcoin will also increase.

Professional Diversifier:- Professional, diversified means that bitcoin buyer includes another cryptocurrency in their portfolio. They do not invest in a single cryptocurrency. Still, They invest their money in different cryptocurrencies to reduce the risk of loss.

Speculators:- Speculators are the traders that have a significant effect on the market. When a lot of traders started selling their bitcoins, the price started decreasing. When they started buying bitcoin in bulk, the price of bitcoin started increasing.

He said that speculators could shake the market, and when the price starts decreasing, that will be the best time for buying bitcoins. But you can do all the things on behalf of bitcoin research because bitcoin is a wildly fluctuating currency.

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