It is an essential starting point but very important for your awareness. If you want to invest in cryptocurrency or understand it, this article will help you realize the future of Bitcoin or cryptocurrency in India.
The article discusses the two most important things that will decide the future of cryptocurrency in India. First of all, taxation is an essential part of understanding the pattern for investing.
You reap the benefits of compounding after investing. The value increases because of compounding, inflation adjusts its value, but taxation reduces its value. So, it is crucial to understand tax whenever you adopt any investment strategy.
And second, which is equally important, especially in India, recently there have been many discussions around a potential ban of cryptocurrency in India. The government might announce its cryptocurrency, and so on.
With all this around, how should you think about cryptocurrency?
There is, of course, this trigger and this risk that something might happen about which no one is prepared. However, other mechanisms, as a long-term investor, you should not be afraid whether the investment will be valid in the future or not or someone might seize it.
The good thing about crypto is that it is decentralized, which means that no one owns it. So, nobody can take it from you.
They can only potentially tell you that this is not allowed in various forms and mechanisms. In this whole world, very few countries have banned crypto. Most countries have not done it, they are favoringit, and it is a vital sign.
In India still, there is a lot of ambiguity around crypto because the government is suggesting to ban crypto and launch their currency. Because of that, many exchanges have also come into trouble with their banking partners, so in this scenario, investing in crypto gives the investors a double thought about it.
Some countries have allowed cryptocurrency as legal, while some are banning it. So what India would do is the main question that arises. If you are interested in bitcoin trading, visit https://cryptodezire.com.
Secondly, if you look at India inwardly, India’s progress in the last 10 to 20 years, the most significant contributor has been the internet and software. The contribution made by this ecosystem is massive. So crypto is also an extension of the internet and software.
So will India, which made rapid progress in the last 10 to 20 years, leave this technological edge and not participate in it? What are your views about it? What do you think India would do?
It’s just a confusion right now, which is fine because the important thing is, innovation always comes first, and then comes regulation. So, you need a market to regulate it. If the market is not there, how will the regulation take place? So, the market is forming, and eventually, it will be regulated.
What are the things the regulating authority optimizes for? Why was a suggestion put forward for banning crypto?
In the legal process of forming laws and regulations, there are many moving parts, for example, regulators. So, the regulators’ job is to avoid any harmful activity. So, their perspective would be very different: how to prevent anything from going wrong. So, if they see the terms, they will ask not to do this, not to do that, or maybe they will say you will have to do certain things, so they look at it from a safety point of view.
Eventually, people of the country have to think before all this, and everybody needs to understand what this technology is and why it is being used?
There are multiple classifications in crypto, so it’s just taking time for all this to make people understand and to emerge read a more significant definition. It will take time, but their thoughts will be transparent once they know. Comment your views below. Should crypto be accepted in India or not?