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Deepak’s new book, Crypto’s new regulation & India’s new richest (well, almost)


In this week’s edition

  • 🆕 TLDR – a new section where we quickly simplify the “too long” arduous stories that you “didn’t read”.
  • 2 articles from the Capitalmind research desk
  • 5 conversations from the slack community
  • 5 interesting reads from across the internet 

What next for Cryptocurrencies in India? 🤔

Nov 25th, 2021 was just another day for cryptos. They were down 15% to 20% across the board. Regular move & nothing much to talk about it. Except it’s not. India has proposed a cryptocurrency bill. The Cryptocurrency and Regulation of Official Digital Currency bill, 2021. It will be discussed in the budget session in Feb 2022.

So will they Ban or Regulate? It is unclear for now. There is a lot of ambiguity.

The government wants to prohibit all private cryptocurrencies in India while allowing for certain exceptions. It also wants to create an official digital currency to be issued by RBI.

What is public & private cryptocurrency?

Public crypto has two definitions.

Legally, any crypto that is issued by a Government or a Sovereign body is classified as public crypto.

Technically, public crypto operates on an open blockchain. The transactions are traceable and are transparent for every user. In this structure, you can get the wallet addresses of both the sender & receiver. Popular public cryptocurrencies are Bitcoin, Ehereum, Litecoin, Ripple, etc.

On the other hand, private crypto is designed to hide transaction details. They may still have open ledgers, but the transactions are not traceable. The wallet addresses are masked or hidden. Monero, Particl, Dash, Zcash, etc are examples of private cryptocurrencies.

The way forward

  • So which definition of public cryptocurrency, the government is talking about?
  • Will it ban Dash, Zcash, Monero but allow Bitcoin and Ethereum?
  • Will the Government follow Canada & Israel in terms of considering it as an asset class or an outright ban on all Cryptos like China?

In most probability, it will regulate and not ban. The stakes are too high.

Over 100 Million people have apparently invested in Cryptos. That is more people than that have put money in the stock market. By accounts shared admittedly by the crypto industry, Indians have invested almost $10 Billion in Cryptos.

And not to forget, this is just on the agenda of the parliament. It still needs to be discussed & passed. It is anybody’s guess how many versions it will undergo before it sees the light of day.

Who is the richest Indian? Ambani Or Adani?💸

Mukesh Ambani is still the richest Indian contrary to breathless media reports about Gautam Adani having surpassed him.

Year-to-date the value of Adani Group companies might have surged more than Reliance, but Mukesh Ambani continues to hold the tag of richest Indian.

A few days back a lot of media houses did come out with reports which suggested that Gautam Adani surpassed Mukesh Ambani to become India’s richest person. However, not anytime this week this actually took place.

Deepak's new book, Crypto's new regulation & India's new richest (well, almost)

To put it in the right context, the value of Ambani’s holdings in his listed company is still higher than the value of Adani’s holdings in his listed companies. The difference based on Friday’s closing is still more than Rs 1.5 lakh crore.

Deepak's new book, Crypto's new regulation & India's new richest (well, almost)

Most probably, the error might have occurred while counting the value of Adani Total Gas Ltd. This is because that is the only company to have a promoter other than Adani. The promoter stake in Adani Total Gas is 74.8%, but only half of it is owned by Adani, while the remaining by French energy group Total. In 2018, Total acquired a 37.4% stake in Adani Gas for around Rs 6,000 crore, while currently its stake is valued at close to Rs 67,000 crore.

To Read More On Adani Group Companies: Adani Group Companies Explained

Capitalmind Research 💡

  • In this post, we dwell upon the earnings performance of the Nifty 200 index. We have analyzed the results of 191 companies which represent nearly 97% of the market capitalization. Read – The Good, Bad and Ugly in September 2021 Results
  • Deepak Shenoy launched his first book this week – Money Wise: Timeless Lessons on building wealth. The book takes you through a journey about how to grow your money by investing, the pitfalls, and the things to watch out for. Read the introductory post here – Book Launch: Money Wise – Timeless Lessons on Building Wealth

[Premium] School of Slack 😎

Putting together the best conversations from our slack community

  • TIL: What happens to income generated through the exit loads that AMCs deduct on early redemption? [link]
  • Crypto arbitrage: If there is value to be captured, you’ll find folks from CM slack community around. [link]
  • Trying to wrap our heads around PayTM valuations and a fair share price. [link]
  • The RIL-Aramco deal got called off recently. Here’s Soumeet Sarkar sharing details. [link]
  • Cryptocurrencies are going to see regulations. That’s probably not good for something that prides itself to be de-regulated. Tread with caution. [link]

Links we Like

In this section, we bring you curated articles from across the internet that we found interesting. Today’s links are curated exclusively from our slack community: 

  • Among many other things, brokers are trying to sway a new generation of investors by advertising their services as being backed by Artificial Intelligence (AI) & Machine Learning. While it does sound exciting, there’s more gas than substance to it. Kailash Nadh, CTO – Zerodha, shares his insights – On “Powered by AI / ML” marketing
  • Do dead people really make the best investors? With inactivity and a lack of bias working in their favour, they just might. Read – Why the dead outperform the living
  • Inflation in Turkey is now near 20%, meaning basic goods for Turks — a population of roughly 85 million — have soared in price and their local currency salaries are severely devalued. Read – What happened and what’s it all about?
  • Trilemmas have existed since the dawn of time. We should know all of these trilemmas to understand that we can’t run after and achieve everything.  Here’s an article with a lot of these trilemmas – The ambition trilemma: freedom, stability, wealth
  • Warren Buffett once said the reason bubbles exist is because people see neighbors dumber than they are getting rich. It sure seems like a lot of dumb stuff is making people rich these days. That’s when FOMO kicks in. Read – The 3 Levels of FOMO

That’s all folks. Have a great weekend!

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Deepak's new book, Crypto's new regulation & India's new richest (well, almost)


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