Investments in currencies come in a variety of shapes and sizes, but they can be broadly reduced to two suggestions: one based on Kim Kardashian, the other based on Meryl Streep. Both are well-known celebrities – one new, the other old; one a reality star, the other a talented actor. The new one can fuel hype and break the internet, the other is a benchmark for acting excellence. One thrives on Instagram and has an army to manage their social media; the other is more nuanced, uses traditional media and has shown her courage.
Cryptocurrency is the Kardashian of the investment world; They do not know their intrinsic worth, but from the short-term perception of a fleeting amount they assume that this is a hot investment. The value of cryptocurrencies has risen so high that they are recommended as an investment option. To expand the analogy, if Kim Kardashian were to say “I’m Meryl Streep” or better, “I’m Crypto Streep, which is Meryl and better,” would investors buy that? Normally they wouldn’t, but that’s what’s happening now – not only is cryptocurrency viewed as the real currency, it is even perceived by some to be even better than the real currency as its value continues to rise as more and more people buy it. Usually, if something only increases in value when more people (mine) invest in it, it’s a Ponzi scheme.
Several cryptocurrency exchanges sell cryptocurrency as an investment. Typically, a company selling investment options must register as an investment advisor with the Securities and Exchange Board of India (SEBI). But these cryptocurrency exchanges bypass this legal formality of registration or compliance. SEBI is also watching from the sidelines – looking at articles and ads from Page One that advise investing in cryptocurrency.
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Whatever the perception or “feeling”, the term “cryptocurrency” itself is a misnomer. It’s not cryptic, nor is it a currency. The currency bit is added to give credibility to what is basically a token in a general digital ledger. Cryptocurrency advocates would lead us to believe that this is the future of currency because it is about technology; Technology is inevitable, its advance is unstoppable, it is inevitable, and India will fall behind the development curve if it ignores technology. The Shy have repeated this argument so many times that the Supreme Court and even Parliament believe that cryptocurrencies should be legitimized. This while the savvy investors behind this fake currency are spinning around them. They were even able to convince parliament to come up with a bill to make sure they are a legitimate investment option. The bill is pending and will effectively transform Kim Kardashian into a Meryl Streep. It may not be physically possible, but it could be made possible by law.
Cryptocurrency has to be called as it is – it is a total fake. It’s not even a currency. A currency is ONLY real if it is issued by the central bank. Any other currency with any given name is a fake. Any digital currency used in India can only be real currency if it is issued by the RBI. The RBI issues its own digital currency. One that will have intrinsic value as it is guaranteed convertible to real rupees by the central bank. The digital currency of the central bank (CBDC) of the RBI will remove the spark around the cryptocurrency. It is for this reason that venture capitalists and private investors who have invested money are trying to sell as much of it to unsuspecting retail investors before it all goes to waste. You’re trying to get a bill through parliament. They are trying to force the Supreme Court to step in so the regulator doesn’t ban it. So far, they have been able to get enough people to believe that the fake currency is the future as it is about technology. A cryptocurrency is just as much about technology as an aluminum manufacturer is about power. Just because an aluminum company uses electricity to convert bauxite into aluminum! If a fake currency company is using blockchain technology, what about the technology? The use of technology doesn’t make cryptocurrency real.
Cryptocurrency is not a legal matter for the judiciary; it is a regulatory matter that needs to be decided by SEBI and RBI. The central bank decides what is a legal currency in the country and it has already said it is moving forward with a regulatory structure to enable CBDC. SEBI has the jurisdiction and the power to prevent all cryptocurrency exchanges from selling this counterfeit currency as an investment vehicle. She has chosen not to exercise her powers despite the confusion this all creates. It’s waiting for a fraud to happen – something we’ve seen in the past with collective investment schemes (CIS).
Parliament should not pass a bill that legitimizes a counterfeit currency and poses all sorts of challenges to the economy. A fake currency creates a fake economy in parallel with the real one, hiding transactions and hiding them from taxation. Should Parliament be part of an active creation of a parallel economy just to see the mistake after the bill is passed? It is the ardent hope of all right-wing citizens that the Supreme Court will not be convinced that our central bank does not understand currency; that the Treasury does not understand how a parallel economy works; that the only ones who understand technology, currency, and what they mean to an economy are a syrup who deceives and bypasses governments and regulators around the world
The author is CEO, Center for Innovation in Public Policy. The views expressed in this article are those of the author and do not represent the point of view of this publication.
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source https://www.bisayanews.com/2021/09/18/why-cryptocurrency-is-a-kardashian-not-meryl-streep/
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