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Lets assume Indian Government bans Bitcoins in India. Bitcoin is illegal to use and traders and merchants cannot use Bitcoins for trades. Outside Bitcoin is still has value. Countries like Japan and Australia has already legalised Bitcoin. These are the few things that will happen:
• People will start doing Hawala via Bitcoin
• An underground market will develop with Bitcoin as currency. People will pay for all sorts of stuff with Bitcoins.
• Government will not be able to track Bitcoin transactions, they will lose on taxes
• Bribes will increase in Bitcoin. As Government does not recognise people will start paying bribes in Bitcoins
• People who want to transfer their funds from India, will convert their wealth in Bitcoins and move to another country
• India will lose to a global phenomenon.jpeg)
Bitcoin is not something that will stop. It will flourish with or without government’s support. After demonetisation, old notes were being traded at 80% of their value. Value comes from the perception and if people find value in Bitcoins, people will trade in Bitcoins.
You might not get value back in your bank account, but you will surely find people trading in Bitcoin as it still has an international value.
Why they can’t be banned?
Lets assume Indian Government bans Bitcoins in India. Bitcoin is illegal to use and traders and merchants cannot use Bitcoins for trades. Outside Bitcoin is still has value. Countries like Japan and Australia has already legalised Bitcoin. These are the few things that will happen:
• People will start doing Hawala via Bitcoin
• An underground market will develop with Bitcoin as currency. People will pay for all sorts of stuff with Bitcoins.
• Government will not be able to track Bitcoin transactions, they will lose on taxes
• Bribes will increase in Bitcoin. As Government does not recognise people will start paying bribes in Bitcoins
• People who want to transfer their funds from India, will convert their wealth in Bitcoins and move to another country
• India will lose to a global phenomenon
Bitcoin is not something that will stop. It will flourish with or without government’s support. After demonetisation, old notes were being traded at 80% of their value. Value comes from the perception and if people find value in Bitcoins, people will trade in Bitcoins.
You might not get value back in your bank account, but you will surely find people trading in Bitcoin as it still has an international value.
1.1k Views · · Answer requested by
No government can ban the circulation of cryptocurrencies; not unless they build a firewall like the one China or North Korea has in place.
To understand this concept, let us reflect on what Bitcoin or cryptocurrencies really are:
What are cryptocurrencies?
Cryptocurrencies are network protocols which work on the concept of blockchain. A blockchain is a decentralized ledger which can store any data. ()
Cryptocurrencies like Bitcoin, Ether etc use the blockchain to keep track of transactions between people. So the only reason why bitcoins have value is because people are willing to accept them.
Why they can’t be banned?
You have to understand that a good number of cryptocurrencies are not operated by privately owned companies. For instance Bitcoin is managed by a Decentralized Automated Organization. These companies have no central command. While the government can ban Initial Coin Offerings and crypto exchanges, thus stemming the growth of more companies, it surely cannot ban the circulation of cryptocurrencies. Since most crypto companies are not centrally located at a physical address, you cannot ban them either. I can purchase bitcoin from a bank account in the US and transfer it to my wallet, which again is based overseas.
The Indian government cannot ban cryptocurrencies as they need the entire world to follow suit.
They can ban exchanges from issuing Indian Rupee for Bitcoins though.