Asked whether you will buy bitcoins, big bull Rakesh Jhunjhunwala answered, “I won’t buy it for even $5.” In an interview with CNBC International TV, the ace investor said, “Only the sovereign has the right to create currency in the world. Tomorrow people will produce 5 lakh bitcoins, the which currency will go? Something which fluctuates 5-10% a day, can it be considered as currency?”
“If a dollar moves 1-2%, it becomes a news, but bitcoin fluctuates 10-15% every day,” Jhunjhunwala said.
On cryptocurrency trading, he said, “I think it’s speculation of the highest order.” The veteran investor added, “I am not going to buy even if the price goes up,” adding, “I don’t want to join every party in the town, so I don’t even put my minds on bitcoins.”
On fear of missing out the crypto fever, he mentioned, “There have been so many times when markets have gone up, but I stayed out. You should only go to the parties you like.”
“I will never buy bitcoins in my life,” he reiterated.
A high-level committee earlier suggested that all the private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India. The central government will take a decision on the recommendation of committee and legislative proposal, the finance minister had said.
On whether crypto trading will be banned in India, Jhunjhunwala echoed the same thought. “The power to issue currencies should only be with the state and it should be taken away from others. The biggest sovereign right is to issue currency. The regulator must ban cryptocurrencie in India,” he said.
Bitcoin tanked as much 18% on Tuesday and traded around $48,750. The selloff puts Bitcoin prices at the lowest in about two weeks.