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Banks in India: Don’t Touch Bitcoin Or Your Accounts Will Be Closed

Reports on social media indicate that banks in India are threatening customers that deal in Bitcoin and other cryptocurrencies with the closure of their accounts. This move is the latest salvo from the banking industry in a country where cryptos seem all but banned.


Upping the Ante

On Friday (Jan. 11, 2019), Morgan Creek founder and partner, Anthony Pompliano published a tweet culled from sources in India about the latest move by banks in India to prevent Bitcoin trading. According to the tweet, banks sent out warnings telling their customers not to deal in cryptos or risk the closure of their account.

The notice even declared that banks need not send any further correspondence before closing customer accounts. Pomp’s tweet came directly from another Twitter user; Indian CryptoGirl, who commented on the situation saying:

Indian Banks now forcefully taking permission from us to ‘reserve right to close our account without further intimation’ if we deal in #cryptocurrency transactions Ability to decide what to do with our own money is the very reason we need to invest, #BUIDL, & believe in #bitcoin.

There are also reports of similar messages on ATM screens belonging to Kotak Mahindra Bank. According to Indian CryptoGirl, the bank has even made good on its threat. In an update of the situation posted on Saturday (Jan. 12, 2019), the bank issued a notice of account closure for doing transactions involving cryptocurrencies.

Bitcoin all but Banned

Unsurprisingly, the reaction on social media has been one of outrage with many saying Bitcoin is all but banned in India. In 2018, the Reserve Bank of India (RBI); the country’s apex bank, prohibited banks from facilitating cryptocurrency transactions.

India's Supreme Court to Issue Final Ruling on RBI Cryptocurrency Ban in September

A coalition of stakeholders challenged the decision, and the matter remains unresolved. The government failed to respond to a Supreme Court deadline back in October 2018. Reports are indicating a plan to establish regulatory clarity for the market.

However, before such regulations emerge, the legacy banking system in India continues to stifle avenues for cryptocurrency trading. With the government failing to provide a definite stance on cryptos, the RBI ban remains the de facto regulation in the country.

What do you think about this latest move by Indian banks; legitimate concerns or fear of being usurped by decentralized currency systems? Let us know your thoughts in the comments below.


Image courtesy of Twitter (@APompliano and @DesiCryptoHodlr), Shutterstock

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‘Buffett Bet 2.0’ – Investment Fund Puts $1M on Bitcoin to Outperform S&P 500

Asset manager, Morgan Creek Digital, is offering an interesting wager if anyone is willing to take it. It’s willing to bet $1 million, that its Bitcoin-focused Digital Asset Index Fund outperforms the S&P500 over the next ten years.


Buffett Bet 2.0

The fund tracks ten major cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, although the bulk (78%) is Bitcoin. Morgan Creek is so sure of their success, that the partners are putting up the stake themselves.

The wager has been dubbed ‘Buffett Bet 2.0’, after a similar bet made by Warren Buffett, that the S&P500 would outperform a selection of hedge funds over a ten year period. Buffett won that bet, collecting his prize just last year.

Morgan Creek partner, Anthony Pompliano, says the plan is to donate the proceeds to charity, win or lose.

Cold Winter

The bet comes at an interesting time, as Bitcoin (BTC) 00 and other cryptocurrencies are enduring a prolonged crypto-winter. However, US stocks have also fallen recently, due to a number of concerns over global outlook.

Pompliano explained that the company was not just being bullish on crypto, but that its competition was also not exactly at an all-time high.

This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities.

Bad Form

Morgan Creek had better cling to the mantra of ‘past performance is not indicative of future results,’ however. The last big bet on Bitcoin is just weeks away from losing.

A call option costing $1 million was placed on a bitcoin price of $50,000 at the end of last year. Following a year which saw the price move from $1000 to $20,000, that may have seemed like a safe bet. However, for the contract to be worth anything now, Bitcoin must see an increase of almost the same magnitude in just three weeks.

Let’s hope that Morgan Creek Digital has stocked up on rabbit’s feet, horseshoes, and four-leaved clovers.

Earlier this year, an Australian investor tried to make a $6.3 million bet with Berkshire Hathaway, that Bitcoin would top its share price by 2023. It’s not thought that the famously crypto-skeptic company took him up on the offer.

Who will win the bet? Share your prediction below!


 Images courtesy of Shutterstock