“If anyone can create currency…” Indian billionaire voices doubts on cryptos

Market


Cryptocurrencies remain a volatile asset class despite the investor enthusiasm around them. Being around for over a decade has not rid the digital currencies of their uncertainty, raising concerns for both prospective and existing investors. Zerodha co-founder Nikhil Kamath recently took to Twitter to voice some of his doubts over crptocurrencies, enquiring what is the point of one if anyone can create it.

Kamath stated that among several currencies on offer, he will put his faith in “the one with the most muscle”, which according to him is the government.

“The problem with bitcoins, is that there are a 1,000 different similar coins. If anyone can create currency, what’s the point of currency. A 100 years ago if 20 of my 100 neighbors started their own currency, I would favor the one with the most muscle, ie govt, for me,” Kamath wrote.

He also mentioned that he is “no expert here, want to learn more (sic)”, and invited relevant arguments and information.

Nikhil Kamath and his older brother Nithin run financial services platform Zerodha, which offers retail brokerage, currencies and commodities trading, mutual funds, and bonds.

Earlier today, Bitcoin slipped below the $60,000 mark on Tuesday, taking losses from a record high of $69,000 struck on November 10 to more than 12 per cent. The world’s biggest cryptocurrency was down 5 per cent at $60,391.3 at 1253 GMT, after earlier falling as much as $58,563, its lowest since October 28, while Ether, the second-biggest cryptocurrency by market value, was down 6.8 per cent at $4,253.08.

Cryptocurrency analysts could not identify any particular news driving the falls, which they said seemed to be driven by profit taking after a recent sharp run-up.

Bitcoin has more than doubled in value since June, driven by the mainstream adoption of cryptocurrencies and the launch in the United States of futures-based bitcoin exchange traded funds.

On Sunday, Bitcoin received a major upgrade, called Taproot, that enables its blockchain to execute more complex transactions, potentially widening the its use cases and making it a little more competitive with Ethereum for processing smart contracts.

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