Tim Draper Calls Indian Government “Pathetic and Corrupt” Over Bitcoin Ban

  • Tim Draper calls the Indian government "pathetic and corrupt" over a proposed ban on cryptocurrency.
  • Unofficial drafted bill has emerged online making the use of cryptocurrency punishable with 10 years in prison.

American billionaire investor Tim Draper has called out the Indian government over its purported plan to ban bitcoin and all forms of cryptocurrency. 

Proposed Bitcoin Ban

On July 14, blockchain lawyer Varun Sethi published to Twitter an unofficial draft of a bill circulating the Indian government that would ban the use of cryptocurrency. 

In addition to prohibiting the use of bitcoin, the bill seeks to impose a 10-year prison sentence on Indian citizens who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.” The bill does allow one caveat for the digital rupee, which is a token issued and backed by the Reserve Bank of India (RBI). 

Pathetic and Corrupt

In response to the proposed ban, Tim Draper took to Twitter to vent his feelings against the Modi government. 

Draper, who is known for his massive investments in Baidu, Skype, and Tesla, has become a bitcoin bull over the years, in addition to issuing some of the more far-fetched price predictions.

The American investor has also been an active presence encouraging developing countries to consider the benefits of bitcoin and digital currencies. More recently, he advocated the utility of bitcoin to the Argentine government, a country that has been combating fiat hyperinflation for years. 

Others Weigh In

Other high profile individuals have voiced their disapproval over the Indian government considering a bitcoin ban, including Barry Silbert who predicted the decision having the opposite effect on bitcoin adoption. 

John McAfee also chimed in with his belief that governments have little control over the use of bitcoin. 

Supporters of the Ban

However, not everyone took kindly to Draper’s harsh criticism of the Modi government. Given the rise in cryptocurrency-related scams over the past two years, some Indian citizens believe banning bitcoin will be a net positive for the country. 

While Draper may be stirring national sentiment related to cryptocurrency, it’s worth noting that the Indian government has yet to impose a ban of any sort. However, given the amount of rhetoric over the last several months and the more recent emergence of the drafted bill, it appears the Modi government is indeed contemplating decisive action against bitcoin and digital currencies. 

Bitcoin Continues Correction to the Downside Amid High Stakes — Price Analysis

Colin Muller
  • Short term trend: Good chance for an end to the downtrend soon
  • Medium term trend: Uptrend intact but coming under more pressure
  • Long term trend: Downtrend holding strong, unchallenged

As we correctly forecast here yesterday, Bitcoin (BTC) has completed its consolidation around $8,600 and continued to the downside in an extension of its correction from $9,100. It has entered clear support starting at about $8,200, and there is a decent chance of the correction find a bottom within that zone.

We start on the 4-hour and see that the drop in volume telegraphed today’s move down. The typical 3-wave movement of a correction is likely to find support above $8,140 or thereabouts, with support derived from recent resistance.

Within supportBTC chart by TradingView

The histogram is still pointing down hard at time of writing, implying that momentum is still to the downside and might take a bit more time to bleed off. Of course, all of this assumes that Bitcoin’s movement here is a simple correction and not a trend change; in other words, this assumes that the medium-term trend is still up, which may well turn out to be false.

If we take a look at the daily, we see that the scope for a retracement is liberal within the medium timeframe uptrend, starting on January 3. Price can come down to $7,700 without setting off major alarm bells within this market structure; down, namely, to the “golden pocket” .618-65 area of the Fibonacci scale.

Plenty of roomBTC chart by TradingView

We see that the RSI here is engaging a key inflection point on its scale, around 50%. Ideally, we’d like to see this hold and preserve a strong medium uptrend. The histogram looks alarming here, poised to cross over negative with a decent momentum. It is noteworthy that the last two times we’ve seen this, Bitcoin was bought up at the 11th hour and the medium uptrend preserved.

High stakesBTC chart by TradingView

Finally, moving to the weekly chart, we see the larger picture and the overall risky position that Bitcoin is in. The leading crypto has so far soundly failed to break out of the downtrend it's been in for seven months, and failed to surmount the important $9,100 mark.

At this point, it is threatening to again lose the 21-week EMA; and this would put the 55 EMA into serious question. This week is likely very important for setting Bitcoin’s trend in 2020 – and so far, things are not looking great.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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