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Bitcoin surges past $ 11,000

Bitcoin soared 9% on Monday, performing like a safe haven asset as it edged past $11,000 for the first time since around mid-July.

The price of the world’s largest cryptocurrency climbed as high as $11,860, according to CoinDesk data, hitting a more than 3-week high. Bitcoin’s value now accounts for nearly 70% of the global crypto market, according to CoinMarketCap.

Global stock markets on the other hand have been sliding lower on the back of renewed trade uncertainty, after President Donald Trump said last week that Washington would impose 10% tariffs on another $300 billion worth of Chinese goods.

The pan-European Stoxx 600 index slipped 1.6% on Monday while the MSCI’s broadest index of Asia-Pacific shares outside Japan plummeted 2.5%. Dow futures meanwhile were off by about 100 points.

Analysts have previously argued the case that bitcoin could be a safe haven asset, with investors having flocked to the digital asset in the past on the back of an escalation in U.S.-Sino tensions.

“Bitcoin has many use cases and one of the most important is as a form of digital gold,” Charles Hayter, CEO of digital currency comparison platform CryptoCompare, told CNBC by email on Monday. “We have seen bitcoin jump before on macro uncertainty as it becomes a conduit and flight-to-safety asset.”

Yuan depreciation

Bitcoin’s jump in value also comes as China allowed the yuan to break the seven-per-dollar level for the first time in 11 years, triggering fears of a potential currency war.

The yuan fell after China’s central bank, the People’s Bank of China, set the currency’s daily midpoint at 6.9225 per dollar, its weakest level since December last year.

Simon Peters, an analyst at trading platform eToro, said Chinese investors could be seeking to diversify as the yuan depreciates.

“Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing bitcoin’s chances against the yuan,” Peters said in a note on Monday.

The descend of SEBI on illicit coin offers

Everyone's eyes are presently on SEBI which has descended vigorously on unlawful 'initial coin offers' seeking for public or open ventures with a guarantee of significant yields from Bitcoins and other virtual monetary forms ,without any regulatory regime. Be that as it may, Sebi also isn't quick to take on the mantle of an administrative for such 'trading', as the underlying product, which is Bitcoin or any other such cryptographic currency, that isn't an approved product by RBI or some other agency.

In the meantime, it also cannot allow naïve financial specialists to be taken for a ride with unlawful guarantees by these trades and those asserting to be 'mint' digital forms of money. As of now a number of them are suspected to be indulging in false exercises.

These days a great deal of 'coin offerings' being made in India are nothing but fake shell games or fraudulent business models, which together sooner or later give auxiliary purchasing and offering in bitcoins or the other distinctively established digital currencies.

As of late the RBI had made open its dissatisfaction for every such currencies, having said that it has not affirmed any of them, at the same time the tax authorities have consistently been leading inquiries at different trades and have believed to have gathered data on huge measures of sections also including those of HNI's who could have traded there.

The regulators and the government agencies are too in a condition of problem as forcing an assessment would add up to giving a lawful status to such monetary forms, for which any agreement remains subtle given the colossal dangers, including money laundering and terrorist financing , attached with such exercises.

However, what has left the regulators flummoxed is a gravity-defying bitcoin rally to over Rs 10 lakhs for each unit, sprinkled with 'stories' of individuals making crores from thousands.

The RBI has, then again, kept issuing notices since 2013, from the time when the surge in bitcoins caught the attention of Indians. Yet the dangers have multiplied many now, in the wake of a huge spurt in the valuation of numerous such virtual currencies with a rapid development in the Initial Coin Offerings (ICOs).

Although a few entities have started falling back on ICOs to raise funds from investors, including HNI's and other individuals, who are getting lured into assertions of huge returns from bitcoins and other such variations, clearly getting fabricated in the digital world yet in addition reaching out to this present reality.