Bitcoin drops by 10% as El Salvador roll out falters; XRP slumps 17.3%; Polkadot declines by 16.1%

XRP registered the highest decline of 17.36% to $1.14, while Polkadot fell by 16.18% to $28.68. Seven out of the top ten cryptocurrencies were trading in red, with only Tether USDT, USD Coin and Solana trading higher on September 8. The world’s biggest and the oldest cryptocurrency Bitcoin declined by 10.19% to $47,277.16-levels on Wednesday, Ethereum the second-largest virtual token also slumped by 10.41% to $3,527.44.

After the two-day consecutive bullish run of Bitcoin trading above the $50,000 mark, the crypto crashed by almost plunging above 10%, due to the faltering of its rollout in El Salvador on Tuesday.

Bloomberg.com reported that users on social media platforms like Twitter and Reddit were discussing plans to buy $30 worth of Bitcoin en masse on September 7 to mark El Salvador’s Bitcoin law coming into effect. The potential price pump echoes that of previous online campaigns targeting meme stocks like GameStop Corp.

In its 12 year history, Bitcoin faces one of its biggest tests as El Salvador became the first country to adapt it as a legal tender.

The experiment monitored by both enthusiasts and detractors of cryptocurrencies to see if a significant number of people are transacting with Bitcoin, when it circulates alongside the US dollar, and whether it brings any benefits to the violent, impoverished Central American Nation.

The success of this experiment may lead to an initial boost from the government’s Bitcoin wallet Chivo, which comes pre-loaded with $30 worth of currency for users registered with a Salvadoran national ID number. Early on Tuesday, the government disconnected the wallet to sort out technical glitches and would make it available for download later in the day.

Cryptocurrency prices

*All prices as of 8th September 2021, at 7:55 AM, Table Source: Coinmarketcap.com. Conversion rate for the USD to INR used was $1=Rs 73.37

Crypto needs to be regulated as asset and not currency: R Gandhi

Former deputy governor of Reserve Bank of India (RBI) R Gandhi said that cryptocurrencies need to be regulated as a separate asset class and not as a currency, would enable governments around the world to effectively deal with illegal activities associated with virtual currencies.

While speaking at the virtual event organised by the Internet and Mobile Association of India (IAMAI) and Blockchain and Crypto Assets Council (BACC), he said that the basis of origination of crypto as an asset 12 years ago was that it cannot be traced and taxed.