India is YET AGAIN going to try and ban crypto. Even though it tried in the past and lifted the ban shortly afterwards.
They are not the first government to try and restrict people to using FIAT currencies they can control. They just have one huge problem that perhaps they’ve overlooked.
They don’t own or control it.
So sure, they can stop people buying crypto from their banks, shut down all the exchanges, stop people mining by charging too much for their electricity, but they can’t actually stop people transferring their currency around because it’s everywhere and nowhere at the same time. The more you oppress people the more they rebel against that oppression. When I started out with Bitcoin (and I’m going to sound old now), there were no exchanges, you either mined to or found someone who had some and bought it from them. This is one of the reasons I keep my coins on my devices (shouldn’t have told you that).
Embracing Crypto is better for everyone
Countries that have embraced cryptocurrency also embrace blockchain technology which is incredible. Decentralising any kind of data from one place is a major boon as it removes the risk of corruption and loss.
Worries about fiat market cap.
I guess one of the main worries by governments is simple. If people stop using FIAT currencies and
only use Bitcoin it will cause a collapse of the banks. That in itself is an awesome and frightening thought. But the big reason banks don’t like cryptocurrency. Interest. The whole FIAT money system is built on printing money (quantitative easing) and interest. Neither of these things is possible with crypto. Sure you could lend someone some crypto on an interest rate, but you cannot physically lend more crypto than you have. Unlike the banking system that is allowed to lend money 3 or 4 times over.
If everyone moved to crypto, of course, the market cap and volume of movement in those currencies would disappear. But is that a bad thing?
I get that you’re scared Indian government of an incredible movement. But trust me, you’re better leading it than being left behind.
As we’ve seen with the whole $GME/$XRP moves. There is power in numbers. Especially with something that you can’t locate or hold in your hand.
https://www.ukbitcoinblog.com/general-info/why-governments-and-banks-cannot-ban-crypto/
