A large number of Bitcoin users in India might be having second thoughts amid reports of a ban on all private cryptocurrencies through the upcoming bill in Parliament. While the first instinct for most investors may be to sell and cut their losses, experts suggest otherwise.
"I feel there is unnecessary panic around. Nobody really knows the contents of the bill. I believe it will push for regulations and not ban. Our law-makers are much well-versed with crypto compared to last year and understand the positive impact this industry can have on the economy,” said Mohammad Roshan, CEO & Co-Founder at GoSats in interaction with CNBC-TV18.
Roshan, hence, recommended Bitcoin investors should not panic and sell at losses.
Seconding his views, Nischal Shetty, Founder at WazirX and Sathvik Vishwanath, CEO and Co-Founder at Unocoin said that it’s better to wait for a few days until more details of the bill are provided officially and only then the next steps should be taken.
While more clarity is awaited from the government on what the ban means for investors, it’s vital to understand that the regulations speak only about banning private cryptos. So, the bigger cryptocurrencies such as Bitcoin that operate on a public ledger may not come under the ambit.
So, this means that such crypto investors should not worry much, experts believe.
Dipika Jaikishan, Co-founder and COO at Basis also advised users not to take any knee jerk reactions.
“We'd instead suggest parking money in cryptos such as Bitcoin in such a way where the upside would be a boon and the downside wouldn't hurt the existing portfolio," she said while speaking to CNBC-TV18.
However, in the event of the Centre banning crypto, investors should understand that they would be left with two primary options -- sell their assets or keep their crypto assets through wallets from offshore exchanges.
For those who want to hold their digital coins despite a ban, moving their crypto assets to self-custody wallets -- digital devices that work like micro SD cards -- would be a good option. These self-custody wallets -- like Ledger, Trezor, SafePal and BitLox -- store the investors’ private Bitcoin key or keys. If they are concerned about keeping their wallet in India in the event of a ban, these wallets can be sent overseas to their friends or family.
However, considering the experts' views, these may not be required and investors shouldn't think of liquidating their assets as of now.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
(Edited by : Abhishek Jha)