$52,000: Bitcoin hit a new all-time high of over $52,000 a unit last week before dropping by nearly 17 per cent on Monday.

Business Standard
25th February

$52,000: Bitcoin hit a new all-time high of over $52,000 a unit last week before dropping by nearly 17 per cent on Monday.

  • The cryptocurrency, which has seen a wild rally since Tesla CEO Elon Musk drove it with his social media post that his company would start accepting payments in Bitcoin, declined on Monday again on Musk’s remark of an overheating in the price.
  • Experts says Bitcoin has seen increased demand from institutional investors. Apart from Tesla, companies like Square and MicroStrategy have also been buying the digital currency.
  • At the same time, many experts have warned that investors must not forget that Bitcoin tends to have extreme price swings. For instance, the cryptocurrency rose to nearly $20,000 in 2017, only to lose around 80 per cent of its value a year later.
  • Bitcoin price volatility is not the only risk Indian Bitcoin investors face. A fresh ban on cryptocurrencies in India might soon become a reality, as the government is finalising new legislation in the cryptocurrency and token space.
  • Crypto exchanges want the government to reimburse the seven million Indians who are holding over $1 billion worth of cryptocurrencies, in case the ban is implemented.
  • Experts also believe that Indian cryptocurrency investors may take to peer-to-peer transfers to dispose of or to continue holding on to their crypto assets in case the government goes ahead with the ban.

Disclaimer: This information is from a third party—Business Standard—offered through a tie-up to Kotak Securities customers. Click here for complete disclaimer.

A few links for further reading

Insecure and uncertain in insurance business as Covid-18 damage claims mount

Insurance companies around the world were sailing smoothly, helped by growth in emerging markets and strong capitalisation. Things changed in late February when markets realised that Covid-19’s impact on insurers could be significant. Insurers are yet to know the full impact of the crisis as governments and regulators nudge them to give moratoriums to policyholders and quickly settle claims too. India’s insurance regulator has set strict deadlines for medical insurers to settle Covid-19 claims. General insurers face damage claims from businesses devastated by the national lockdown to contain the disease. Is insurance secured to survive, Joydeep Ghosh explains

The unravelling

There was a time when pay cuts we see today were a complete no-no; govt and public sector jobs were considered safe, as pay and pensions were both assured. Not any longer, it seems, writes T N Ninan

Quick approval, grace period

The COVID-19 pandemic has brought home the significance of health and life insurance like nothing else earlier. Even those who were blasé about these covers in the past are now looking to buy a new policy or want to enhance the sum insured on their existing ones. Meanwhile, the Insurance Regulatory and Development Authority of India (IRDAI) has been issuing a slew of guidelines to health/general and life insurance companies aimed at easing matters for customers.

Want to get this in your email?