Cryptocurrency Ban in India? | Why is it a Bad Idea to Ban Cryptocurrencies?
The Indian government is going to ban cryptocurrencies. This news had made headlines in the past few days. But is it a good idea for INIDA?
WILL IT BENEFIT INDIAN OR NOT?
Let’s talk about the future.
This article is different if you agree with our points. please share this article with your family and friends and if you don’t agree tell us in the comments what do you think.
Crypto Investments In India
Cryptos are a $3 trillion market around 10 crore Indians have invested in cryptos. This amount is around 6 lakh crores.IMF says cryptocurrencies are the next step in the evolution of money. world bank says blockchain will usher in a new wave of technology.
This is web 3.0 but people ask, demonetization 2.0 see when people hear the word ‘ban’ they naturally get scared the immediate comparison is made to demonetization. but I feel demonetization is not possible in the world of cryptos. so let me give you an example.
During demonetization, Rs 500 note was not legal tender. but at the same time. the govt also realized a rs 500 note. you could exchange this new note for your old notes. the value of the old rs 500 and the new rs 500 was the same or more, not less. but if all the cryptos are banned. what will the govt replace the value of all that money with? rasing so much wealth from the market.is bad for India as well as the entire world! and the reason is CHINA
China’s Unsuccessful Ban On Crypto:
This year, China tried to ban cryptos but did the Chinese people stop investing in cryptos? NO! China has banned Youtube, WhatsApp, and Facebook too. It is illegal but the Chinese use VPN to override this. THROUGH VPN, your connection can come from another country’s server.
That means a Chinese national. can pose as a Japanese and buy cryptos. because china has said you can’t mine or trade crypto assets. so that investors will keep their crypto assets in japan. locating such people is impossible even for china. the whole country of china loses out because china is definitely because of this. After all, can’t tax any crypto gains.
NO TAX! but china’s loss is Indian gain. india’s biggest donation during covid came through cryptos. similarly, in the future, many companies can get funded using cryptos. this funding used to come before as well, but in US dollars just think about it. if an angel investor from Singapore invested in India. the investment is made in US dollars. BUT WHY?
why are we making the US dollar STRONG?
Today, the US dollar is a universal currency. so the demand for the currency is increasing and its value as well. The US benefits from having its currency as the global standard but this causes a loss to the developing countries. but because crypto is not limited to any one nation. These benefits won’t be limited o only one country but will be democratically spread across many nations. but banning cryptos means saying goodbye to opportunities.
On the 10th anniversary of the ROCKSTAR film Mr. Ar Rahaman took a unique initiative he decided to auction the source track of “Phir Se Ud Chala” and the funds raised from the sale for the auction would be donated to support the Indian music community hidden by the COVID.
Now, what is NFT?
just like how people purchased Orginal Picasso paintings. they can purchase art in a digital format. but how do we know that this art is genuine? THIS TECHNOLOGY IS INCOMPLETE with our cryptos.
India’s 1.4 billion people will lose out on many applications. that’s why cryptos should not be banned.
Bad Side Of Cryptocurrency
But why do some people think crypto is bad? nobody can say that nothing is wrong in the world of crypto. the way crypto is being advertised is extremely wrong in India. I say an ad where an employee invested in cryptos. and then quits his job because of profits. this is promoting very irresponsible behavior. and this is wrong.
action needs to be taken on this irresponsible behavior. this can be done with regulation. secondly, if you read the title of the bill carefully. the bill mentions private cryptocurrencies.
How gove defies private cryptos will be important. but this is what we feel. some cryptocurrencies like monero, paricl , dash operate on a private blockchain. This means only a few people can view the transactions. terror financing happens through these private cryptos
Because tracing these is next to impossible. but bitcoin Ethereum, Solana worked on public blockchains. this means the transition can be accessed if needed. I hope when the govt says private cryptocurrencies will be banned. the means cryptos operating on private blockchains.
Treat it as an asset class. Canada and Australia both are following this type of regulation they are earning capital gains tax on the trade, in fact, in Canada. crypto exchanges report large transactions to the govt. this also helps in security. if crypto becomes currency, it will compete with the rupee. which is not right for any country. but do gold or silver compete with the rupee?NO! because they are an asset class.
Why is crypto important?
the future of India is depended on how much we welcome new technologies. all big internet companies amazon, apple google, are all American companies we missed the internet boom that came 20 years ago. now, this is a new time. where not only cryptos. but there will be new use cases for the internet too, that’s why we call it webs 3.0.
If you like this article then please share this and help your friend to understand cryptos. in the end all I want to say is I am not going to advise anyone to invest in cryptos. I am also not going to stop you from investing in crypto. because ultimately, it is your money and the risk is yours as well, so 100% of the profits or losses are all yours. because this is not the season of bulls or bears. this is pigs season pigs are a particular type of investor who invested based on tips and advisories. and exit the market based on similar tips and messages. if all of your decisions are motivated by greed or fear. then they are not rational decisions. always remember bulls make money bears make money. pigs get slaughtered.