Cryptocurrency Bug is biting Indians
Cryptocurrency has taken the world by storm and India has jumped into the bitcoin foray with all the zeal it can muster. With the astonishing surge in the Bitcoin value, Indian dealers are steadily on the rise. A lot has occurred since the Virtual Currency boom and nobody can accurately say why it has grown so much. Rumours of India’s very own cryptocurrency has also surfaced.
Although the Indian Government has firmly stated that Cryptocurrency isn’t legal tender, growing enthusiasm among the Indian population is beginning to worry those in power. Since its inception 9 years ago, Indians have been actively seeking the Bitcoin. Sadly, there are very few reliable, regulated exchanges here. Currently, the value for Bitcoin has touched a growth of 880 percent higher than the US Dollar and is valued at $11434.
The Future of the Cryptocurrency Market in India:
India and China are both emerging cryptocurrency markets. But the biggest hindrance for both countries is their immense population with no access to banking and financial services. Adoption of new technology in India occurs with ease. Cryptocurrencies and Blockchain technology have also been readily accepted by the populace.
The Indian Government’s plan to shut down Cryptocurrency dealers on the rise may not be entirely useful. A more effective path to smoothly adopt virtual currencies in India would be to prevent purchases with cash. Indians have been left frustrated due to RBI’s lack of enthusiasm for regulation and acceptance of Bitcoins and other Cryptocurrencies. If Government bodies are willing to take necessary steps in this regard, India can become a huge market.
The Bitcoin Rampage across the Globe:
Bitcoin has massively grown in a short while causing dozens of investors fighting to take their claim in the largest virtual currency the world has seen. Several warnings and alarm bells have sounded to be careful since the growth of Bitcoin may be based on a speculative bubble. Out of all the cryptocurrencies, Bitcoin has emerged as the knight in shining armor and is set to transform the equation of wealth forever.
India dreams of launching its very own Cryptocurrency the ‘Laxmicoin’ which is still trying to come out of the non-fiat currencies league by escaping the legal quagmire entrapping. Only time will tell if the Laxmicoin can emerge victorious as India’s regulated and legal virtual currency. But now, the future of the Laxmicoin certainly looks bleak and uncertain.
The Bitcoin bug has bit millions of Indians hard with more than 2500 users trading every day contributing to a trading volume of approximately $20 Billion per year. With the massive increase in Cryptocurrency Trading in India, the Government’s delay in rolling out a regulation policy will be too late for Indians to comply with.
Are we on the right track?
The three main concerns all Indians interested in Cryptocurrencies have include safety, damage control, and increase in revenue. Now, all three questions are unanswerable because of the uncertainty revolving around Bitcoin. But the prospective massive returns are making Indians more drawn towards virtual currency.
Owing to the immense popularity of virtual currencies, more countries are launching their own versions like Bitcoin and Laxmicoin.
Cryptocurrency Dangers India needs to watch out for:
There have been several cases of money laundering in Japan related to cryptocurrencies that led the Japanese Government to tighten its noose around regulating cryptocurrency exchange. In India too, the danger of unregulated exchanges and money laundering are very high. The Finance Ministry of India is taking careful steps in this regard, and rightly so. An Interdisciplinary Committee formed to discuss the regulation of Cryptocurrency had earlier sought to ban Cryptocurrency exchange in India but that doesn’t seem like a very wise decision now.
If the Laxmicoin or Bitcoin acquires legalization in India, it will not only transform financial transactions occurring in India but would also serve as a more convenient method of payment compared to using credit and debit cards. But for now, cryptocurrency is fighting to survive in India in the absence of regulations. Investors need to be very careful while dealing with cryptocurrencies in the present climate due to the high probability of getting cheated. Fake Cryptocurrencies are on the rise and the last thing Indians need is to be sucked into the virtual currency vortex.