9 Hours ago Economic times did it again. They published yet another article on why you should stay away from Bitcoins. Every day the fight against these Cryptocurrency-hating mainstream media keeps getting harder. These articles get them the attention of the people and create unnecessary FUD.
ET gave ‘six more reasons’ to stay away from cryptocurrencies. Let’s talk about them.
Reason 1: Banks have started stopping purchase of cryptocurrency with their cards.
Oh Lord, yes Citibank asked to stop buying Crypto with credit and Debit cards. Yes SBI cautioned users. But who the hell is buying cryptocurrency using debit cards? All Indian exchanges have offered services for UPI, IMPS, NEFT deposits. Debit card takes out money from your bank account, so does the bank transfers.
And please, even the long time hodlers say do not buy cryptocurrencies with credit cards. You wouldn’t advice anyone to invest money by borrowing money. That is against the principles of investments. Why blame crypto when you won’t suggest anyone to buy Shares with credit card?
Reason 2: Crypto exchanges halt trading, ask investors to take back money
Oh wait, 2 exchanges in India are closing shop. EthexIndia and BTCXIndia. But, everyday we have new exchanges opening up. Indian exchanges like Koinex are trading in volumes that puts Binance to shame for certain coins. The 2 exchanges do not want get their hands dirty, and hence they are shutting. Stop making a big deal about it. There are 20 other exchanges to choose from.
Reason 3: Not all Cryptocurrencies give you sky-high returns
Oh shit, newsflash, alert everyone, Devansh Sharma is telling us something we didn’t already know. You don’t get sky high returns so don’t invest. Invest in fixed deposits because they give you 7% return per year. Cryptocurrency market has gone from 100 Billion to 450 Billion USD from 2017 to 2018 and Economic times wants you to not invest in it because many coins don’t give returns over 500% like Bitcoin.
Reason 4: Tax Trouble
Government has not outlined how profits from crypto should be taxed. Yet, experts believe that they are assets and hence tax should be paid as short term or long term capital gain. Government has setup a committee and are deciding how to regulate crypto assets, why don’t you find out where they are right now with that Mr. Reporter and put your skills to good use?
Any and every investor should pay taxes on profit. Ask your CA or IT lawyer and they can help you. No reason to not invest. It is not illegal to invest in Crypto.
Reason 5: Government’s averse Stance
The risk according to ET is that if purchase or trading of crypto are banned in India, the exchanges will have to shut down and global prices will fall. I have a few points to make here
- There are organisations that are working from their end to help government regulate crypto.
- Hypothetically, if a ban comes, please keep your investments and wait for the government to change stance or sell it when you are travelling abroad. Smoking Marijuana is banned in India, people can go to Amsterdam and smoke.
- Ask yourself this, will government just wake up and say “We ban bitcoin”? Obviously, you will be given time to get out of your investments. You were given 3 months to change your old notes too, remember?
Stop worrying about what the government will do and invest if you wish to. Prices are going to fall and rise, that is the risk you carry all the time.
Reason 6: KYC Timeline and Volatility in Prices
Essentially ET is saying because KYC takes time and prices can change, do not invest. ET forgot that we can’t invest without KYC. So, the whole article is useless without KYC. You will not lose money if your KYC is not done and prices come down, because you cannot buy crypto.
Lastly, ET answered the famous question, should you buy?
“but in the present scenario buying and redemption are becoming major issues for investors”, ET says.
Investors are not fools ET. Many exchanges still offer instant deposits with UPI and withdrawals within one working day. Also, we are a community of people who help newbies into making right decisions. Please stop turning a blind eye to cryptocurrency community, we are stronger than you can imagine.
If you have any doubts about cryptocurrency, join our telegram channel, we are young but the community will help you or guide you to the right people.