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There is no ban of Bitcoin.

Hello to all of you folks who are living in the world of ETF’s, Future Contracts and market manipulation of Bitcoin Price and AltCoin influence without knowledge! Wow this sounds like someone is attacking your system? Great! We have to discuss a serious thing today and I want make sure you listening carefully before making a big mistake.

Let us talk to the so called “Bitcoin Ban” in India. The speech is around the corner, birds singing from rooftops the death of crypto in India. This sounds familiar to you. Yes, because we had this talking’s all before Supreme Court stops Central bank movement and RBI was pushed back.

Since this day news hanging around like clouds a ban will come, the big brother bank will strike back. And today my colleague send me an article saying “a crypto ban simply shuts down well-lit, regulated exchanges in favor of underground crypto…”

 

Why is the ban likely not coming ? 

1. Bitcoin leads into wealthy

Yes right, India has a huge demand on Bitcoin business, and it can help a lot of people out of poverty the more simple people educated making only a revenue of $10 USD in a day or two, because this is heavy money for an economy which is the 6th richest on planet but at the same time having more than 2/3 of the people living in poverty. Means 500 Million people share the wealth of approx.2 Billion estimated to live in India.

India has a huge economy and another problem because no one really wants in the world getting more than 3 billion unbanked worldwide joining the financial sector because it will be overblown and create a horrible inflation scenario bets of hedges will turn upside down and prices will explode because economy can’t grow in the producing field to satisfy the demand of all this people want for example drive a good car now.

But India and his president see the big chance to become through this effect in the world the real chance they never had to build their own supported infrastructure like China, which is acting like a economy whale now. It is one and for sure, that the government of India with this step to regulate Bitcoin and not to ban it is a key role from a historical world. The government will become the first in India who could save millions of life, because the money is not taken out of the country as central bank and RBI is claiming. Another point is India needs taxes and fresh capital from international markets. But this money is expansive because of the economy crises. Bitcoin will boom in India creating a trillion Dollar market and the participation on this will become a huge income stream. It is not about the 18% tax. It is about a tax system based on the volume and finally allowing accepting Bitcoin for retail business will lead India to his own Amazon. Moody has biginfrastructure problems to solve: Digitalization, Health Care, Infrastructure and poverty.

The Bitcoin economy is the motor of DLT technology for Digital Transformation process. India want to become a leading role and so they say from officials leading the digital transformation is a key role for them. But this needs massive invest of debt. Extend the open markets with a clear regulation opens the door for a worldwide accepted business. Taking tax from the exchange owner prevents people not paying tax because the exchange and OTC markets will set tax rate into fee. With the so called “Bitcoin Licence” in the U.S the government collected hundreds millions of trading taxes. Coinbase made more than 2 billion overall in fees.

The business is too big to be ignored by a country like India. The ban will also drive bitcoin price to new highs and a massive sell out of India will happen, because people will do their tradings on foreign exchanges and pay there for the taxes not in their own country. They have done it before and will continue to do so. There is no market on the old business where people can gain capital and raise tax.

 

2. The Bitcoin price speculation

More than any other country India is flooded by scams and this is the reason why we see a lot of fake traders and Ponzi schemes coming to India. This is because of lack of knowledge in this country, a reason why SatoshiCon is offering massive legal courses in India in the sector of regulations, blockchain and cryptocurrency in association with iltes.in (infinity law- tech- educational services).

As you can see most of the news in the ban are driven by the question what happens to investors and not about the economy problems India struggles with. People creating a fear of missing out moment, with massive blogs and writings about the ban. There is no clear statement of officials. So they use the uncertainty to push back markets because of their invest in price bets of Bitcoin. Always you hear sentence like this “A person at the federal authority said,… a person who would stay anonymous from the government stated,…” and so on. It is about

 

 

3. Nigeria’s ban on cryptocurrencies – an example how this could go wrong 

 

Nigeria has the second largest Bitcoin market in the world with over $500 million worth of Bitcoin traded over the last five years. The CBN’s directive on cryptocurrency transactions will understandably have an effect on the cryptocurrency market in Nigeria as it essentially prevents traders from buying cryptocurrencies with their credit/debit cards issued by Nigerian banks or receiving proceeds of cryptocurrency sales from exchanges which facilitate the buying and selling of cryptocurrency.

It appears However some exchanges have found a way around the restriction by    switching to peer-to-peer trading which enables individuals buy or sell cryptocurrency from individual traders as opposed to the exchanges. In effect, this does away with the need for exchanges to operate settlement accounts in Nigerian banks.

Nigeria has the second largest Bitcoin market in the world with over $500 million worth of Bitcoin traded over the last five years. The CBN’s directive on cryptocurrency transactions will understandably have an effect on the cryptocurrency market in Nigeria as it essentially prevents traders from buying cryptocurrencies with their credit/debit  cards issued by Nigerian banks or receiving proceeds of cryptocurrency sales from exchanges which facilitate the buying and selling of cryptocurrency.

It appears However some exchanges have found a way around the restriction by switching to peer-to-peer trading which enables individuals buy or sell cryptocurrency from individual traders as opposed to the exchanges. In effect, this does away with the  need for exchanges to operate settlement accounts in Nigerian banks.

4.  Bitcoin will become mainstream “money of the street” in India which was before allowing exchanges a huge ongoing process in India. How does this work. Everyone has family and friends a lot of this friends have relatives in different countries in Europe and America. They do the trades because they are registered legal in Europe for example. Winnings send to the wallet of the Indians who share the money in small portions about a couple of wallets. Each wallet they have created provides a private key. Imagine you got 1000 Dollar from your relatives in Bitcoin. So, you will split this amount over 100 wallets, and each contains 10 Dollar. Now you write down the private key for the wallets and sell them on the street for 10 Dollar. You get cash and the guy can now participate on the markets and do his own trades. After spending the 10 Dollar you shut down the wallet. You can open as many wallets as possible you want there is no limitation. The private key is like cash. You can build an economy only exchanging private keys against cash and work with the bitcoins. The ask for bitcoins in India is that high you will always find a buyer. So, you create a circle trading on foreign exchanging bringing the bitcoins back to the Indians hands without having them to be registered. This will create a shadow society and India’s government has a lot of problems actually in all fields of regulation with shadow societies.

Resumé: India is not going for a ban but will have a strong regulation. The reasons above are well known and India is on the way to solve a lot of problems right now. Only bankers and RBI wish a ban. Government in India is different but effective and thoughtful.

 

Written by : Prof. (Dr.) h. c. Joerg Molt

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Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin49,541 0.62 % 4.15 % 0.62 %
Ethereum1,568.1 0.69 % 3.32 % 3.70 %
Cardano1.170 0.01 % 6.30 % 10.40 %
Binance Coin238.34 0.19 % 4.40 % 6.71 %
Tether1.000 0.10 % 0.11 % 0.65 %
Polkadot36.20 1.20 % 4.74 % 7.32 %
XRP0.4569 2.21 % 0.17 % 3.13 %
Litecoin186.54 1.41 % 3.01 % 2.35 %
Chainlink29.19 1.11 % 5.52 % 3.65 %
Bitcoin Cash517.00 0.88 % 3.75 % 2.39 %