Bitcoin will reach Rs 1 crore by 2030: Rahul Pagidipati of ZebPay

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Bitcoin prices have jumped almost 300% from March 2020 when the Supreme Court struck down the ban on cryptocurrencies. Rahul Pagidipati, CEO of ZebPay, an exchange for cryptocurrencies, speaks to Money 9 about the legal status of the cryptocurrency and the risks involved.

What is the legal status of Bitcoin in India?

Cryptocurrency has never been illegal in India, and the RBI itself restated that crypto is legal (in fact, RBI has cautioned against trading in cryptocurrencies). We look forward to getting regulatory clarity, but many of the existing laws do apply to crypto even if they don’t say the word crypto. Our legal team makes sure we follow the law in letter and spirit.  We believe that till crypto firms are regulated, they should self regulate to protect customers and public. And serve as a model for how future policy should look. Indian investors should know that crypto is legal in India, but they should invest through a trusted exchange that follows proper KYC and anti-money laundering policies.

Will Bitcoin prices rise further ?

It’s very hard to predict the value of bitcoin in the short-term. But in the long term, it is highly likely to increase significantly. We expect that Bitcoin will reach Rs 1 crore by 2030.

What governs the Bitcoin prices?

It is purely by on demand and supply from global investors. Bitcoin’s price has grown from a fraction of a rupee to the present price of over Rs 17 lakh.

How many Bitcoin users are there in India? What is their age profile?

There are an estimated 5 million crypto investors in India. ZebPay itself has about 3.5 million members. The majority are aged 25-40. Women are currently about 8% of Indian crypto investors, though ZebPay has about 15%.

How to trade in Bitcoin?

The simplest way to get into bitcoin is rupee cost averaging, so that the average price that is invested is the best possible price.  At ZebPay, we recommend long term investment. Investors should think of Bitcoin as a store of value, rather than short-term trading and speculation. A bitcoin held for over 3.5 years would have a 99.9% chance of making profit. That’s almost never seen in any other asset class.

You can start by registering on any of  the crypto exchanges.  It takes about 5 minutes to complete the registration. Get started with as little as Rs 100 that you commit to investing every day, week or month.

What are the risks involved?

Like any market, Bitcoin has price volatility. Investors should be prepared for ups and downs and only invest with risk capital.

There are reports about exchanges not allowing withdrawal of Bitcoin. Why has it been an issue?

Withdrawal is instant and easy on ZebPay. We don’t comment on other exchanges.

How are Bitcoins taxed?

Existing tax law can be used as a guideline and we encourage our members to report their income from crypto and seek professional advice as needed. Further regulatory clarity would help people to plan and report.

There was a report about kidnappers asking the ransom amount in Bitcoin. How does it work?

These cases get a lot of media attention, but research shows that less than 1% of Bitcoin transactions are for criminal activity. Criminals are more likely to demand dollars, rupees, or other fiat currency. And exchanges like ours which have strict KYC and anti-money laundering policies are actually a help to law enforcement.