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As Bitcoin Turns 10, Its Investors Face Year-On-Year Loss

Investors who bet early on bitcoin and have stuck with it have faced a roller-coaster ride in its first decade.

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virtual currencies, bitcoin, investors
Bitcoin.com buttons are seen displayed on the floor of the Consensus 2018 blockchain technology conference in New York City, New York. VOA

Bitcoin was heading towards a year-on-year loss on Wednesday, its 10th birthday, the first loss since last year’s bull market, when the original and biggest digital coin muscled its way to worldwide attention with months of frenzied buying.

By 1300 GMT, bitcoin was trading at $6,263 on the BitStamp exchange, leaving investors who had bought it on Halloween 2017 facing yearly losses of nearly 3 percent.

A year ago, bitcoin closed at $6,443.22 as it tore towards a record high of near $20,000, hit in December.

virtual currencies, bitcoin, investors
People use a bitcoin ATM in Hong Kong. VOA

That run, fueled by frenzied buying by retail investors from South Korea to the United States, pushed bitcoin to calendar-year gains of over 1,300 percent.

Ten years ago, Satoshi Nakamoto, bitcoin’s still-unidentified founder, released a white paper detailing the need for an online currency that could be used for payments without the involvement of a third party, such as a bank.

Traders and market participants said the Halloween milestone was inevitable, given losses of around 70 percent from bitcoin’s peak and the continuing but incomplete shift towards investment by mainstream financial firms.

virtual currencies, bitcoin, investors
Transactions in cryptocurrencies occur the same way that you make transactions using any other fiat currency. pixabay

“The value mechanisms of crypto and bitcoin today are based more on underlying tech than hype and FOMO (fear of missing out),” said Josh Bramley, head trader at crypto wealth management firm Blockstars.

Growing use of blockchain – the distributed ledger technology that underpins bitcoin – is now powering valuations of the digital currency, he said, cautioning that some expectations for widespread use have not yet materialized.

Others said improvements to infrastructure such as custody services may allow mainstream investors who are wary of buying bitcoin to take positions.

virtual currencies, bitcoin, investors
Bitcoin is a cryptocurrency and worldwide payment system. Wikimedia Commons

“We see behind closed doors financial and non-financial institutions beavering away to create the infrastructure,” said Ben Sebley, head of brokerage at NKB Group, a blockchain advisory and investment firm.

Bitcoin has endured year-on-year losses before, according to data from CryptoCompare, most recently in 2015.

Also Read: Climate Change Efforts Can Be Nullified Due To Bitcoin Production: Scientists

Retail investors still account for a strong proportion of trading, market players said.

Investors who bet early on bitcoin and have stuck with it have faced a roller-coaster ride in its first decade. Many told Reuters they are optimistic that they are still onto a winner. (VOA)

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Hotel Chains in Rajasthan Contribute in Growing Local Economy

Big hotel chains help boost local economy in Rajasthan

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Hotels Rajasthan
Hotel chains in Rajasthan play a major role in boosting the local economy. Pixabay

BY ARCHANA SHARMA

Big hotel chains in Rajasthan are helping the local economy grow by providing newer employment avenues to the natives.

These hotels are hiring local people to showcase the colourful heritage of Rajasthan to guests coming from different parts of the world.

Ibis, an Accor brand, recently re-launched its property in Civil Lines, Jaipur, in which locals were engaged in the task to design a vibrant and colourful lobby with traditional Pichwai artwork connecting to the ethic charm of the Pink city.

The property also showcases a quirky auto and bike parked outside the lobby which comes in different shades of pink connecting with the theme of the pink City. Again, in this perspective, the local students’ views were taken into account to make the pretty decor of the auto and bike, said Saumitra Chaturvedi, General Manager, Ibis Jaipur Civil Lines.

Further, the hotel had hired a local band, Marudhar, during the relaunch of the property, which has got six local members who shot to fame after displaying their talent in ‘India’s Got Talent’.

Chaturvedi said, “It gives me immense pleasure to showcase the revamped Ibis property in Jaipur which has been designed after seeking services of local artists. We look forward to serving the best blend of local and global in terms of food, delicacies and experiences, he added.

Rajasthan locals
Big hotel chains in Rajasthan hire the local people to showcase the rich culture of that region. Pixabay

The other property pushing local economy to new heights is Alila Fort Bishangarh where locals are engaged in diverse tasks including garden landscaping, housekeeping, driving and even the kitchen for dishes, said Binny Sebastian, General Manager, Alila Fort Bishangarh’s heritage hotel, some 50 km from Jaipur.

As our property is situated on the outskirts, the surrounding villages had people engaged in farming and hence we are training them in diverse tasks to ensure they have a decent source of earning. Now, the villages look changed as there are many shops and businesses coming around, he adds.

These guests are also taken around for a barber shop where they love to get a hair massage done which is called as Champi in local language. Villagers are getting a decent price for it. We have a chai shop where guests are taken and they pay villagers a decent sum for a tea.

Then comes as zero mile cuisine system we have introduced recently where food produced within the vicinity of one mile is being served to guests. This again boosts local economy, Sebastian says.

This Diwali, we gifted paper bag made from newspapers with an earthen pot having tulsi plant grown in our garden. Again local services were taken to make bags and pots, he adds.

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“Our association with locals is quite strong. Our guests also visit the artisans’ houses and sip tea there while watching them make pottery and weave carpet. In this way, we ensure that locals get a decent livelihood,” Sebastian added.

“We have started getting regular income since this property came up a year back. We have been showing our art to the guests here which gives us satisfaction as well as an income,” said Nizamuddin, a bangle maker engaged in Alila Fort, Bishangarh. (IANS)