Bitcoin case study: Aniket Patel is an Indian teenager and cryptocurrency investor who is still working on his school exams. Despite this, Patel spends more time checking the Reserve Bank of India’s (RBI) website than scouting for exam results.
This is because Patel considers himself a long term “HODL’er” who is not looking for quick cash, but instead hoping to grow his investments. Despite the fact that Patel’s holdings are now almost twice his initial investment, he is in it for the long haul, he says, and isn’t looking to get out anytime soon.
Since the RBI’s crack down on digital currency exchanges earlier this month, Patel has been visiting the bank’s website regularly to check for further directions from the regulator in the hope that its order will be reversed or eased.
“I do not use any local exchanges to conduct my transactions anyway, so I am not affected by the ban but I do have some holdings in my father’s account on a local exchange and those we will move to a private wallet within three months. But there is no point selling since we have held these for long and the market is right now at a loss.”
Patel is among the many millions of digital currency investors who have been directly affected by the central bank’s order, announced on April 5th, which stated that the RBI was barring banks and financial institutions from dealing in digital currencies. Per the order, RBI has given consumers three months to wind up business interactions related to cryptocurrencies.
As might be expected, while digital currency exchanges in India are keeping quiet, traders (like Patel) on these exchanges are unwilling to liquidate their holdings just yet as they wait for the market to move up again.
In a perhaps unintended consequence of the RBI’s orders, the bank’s directive proved opportune for a lot of traders who used the dip in Bitcoin’s price to their advantage by buying