International analysts are raising significant concerns about cryptocurrency sustainability, with economist Steve Keen predicting that Bitcoin could collapse to zero due to its energy-intensive proof-of-work system. Speaking on the Diary of a CEO, Keen argued that Bitcoin's energy requirements make it unsustainable, stating "The reason I didn't [buy Bitcoin] is they explained that the way that the public ledger is kept safe is that it takes too much energy to break it." His warning comes as Bitcoin is currently trading above $71,000, supported by strong institutional inflows and recent geopolitical developments, though beneath the rally concerns about sustainability are building among market observers.
According to reports from ABP Live Business, recent industry research covering over 25 million Indian users reveals a significant shift in crypto adoption patterns. Over 75% of cryptocurrency transactions in India are now happening outside major metropolitan areas, with Uttar Pradesh, Maharashtra, and Karnataka leading this geographic expansion toward digital finance. This widespread interest beyond urban centers indicates that the crypto revolution is no longer confined to major cities, representing a real boon for getting people on board with digital assets.
As reported by ABP Live Business, India maintains a stringent regulatory environment for cryptocurrency investments. The government has implemented a flat 30% tax on Virtual Digital Asset (VDA) profits, a 1% Tax Deducted at Source (TDS) on transactions, and prohibits crypto losses from being offset against other gains or crypto profits. Additionally, the mandatory Financial Intelligence Unit (FIU-IND) registration for all operating exchanges has forced a massive clean-up of the industry, with the combination of increased taxation and rigorous regulations designed to dismantle unethical business practices and cultivate a more secure domestic market.
According to the analysis by ABP Live Business, the government's blanket 30% tax on all cryptocurrency profits combined with the ban on carrying forward losses significantly erodes portfolio value. The report suggests that holding assets, commonly known as HODLing, frequently emerges as the most logical approach, especially given the prevailing Indian tax structure. Financial experts recommend cash flow rebalancing as a particularly tax-efficient strategy, involving using new monthly capital or Systematic Investment Plans (SIPs) to purchase underperforming assets without requiring the sale of outperforming assets.
As reported by ABP Live Business, the wild west of India's crypto scene is considered a thing of the past with the implementation of FIU-IND regulations. The market is evolving into a more organized space for long-term investors, with compliance and transparency becoming the norm. The report emphasizes that success hinges on navigating market fluctuations through FIU-registered platforms and understanding tax consequences, with investors advised to remain vigilant and adhere to government guidelines to transform market fluctuations into a dependable vehicle for long-term wealth accumulation. Despite years of negative predictions, Bitcoin has continued to rise, with critics like Peter Schiff declaring it "dead" multiple times since 2011, yet the asset has surged more than 4,000-fold since those early warnings.
