Crypto Exchange Ban in India: The federal cabinet plans to hold a debate about the bill on cryptocurrency before it is discussed in parliament for further legislation. The federal government has embraced blockchain technology, the underpinning tech of cryptocurrency, but it has not been clear about cryptocurrency.
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Crypto Exchange Ban in India
This is not the first time the Indian government has done this. In 2018, the government banned the use of cryptocurrency in the country following the widespread scams and other criminal activities related to Bitcoin.
The digital currency exchanges operating within the country scrutinized the matter. They decided to challenge the government’s (Reserve Bank of India) decision to ban cryptocurrency business in the Supreme Court, and exchanges won their case in March of this year. The Supreme Court described the ban on cryptocurrency as unconstitutional and unlawful.
What is the future of cryptocurrency in India?
Crypto Exchange Ban in India: “What is the future of cryptocurrency in India?” this question largely depends on what the RBI decides as they either become more flexible or strict with their laws around Cryptocurrency and ICOs.
There are indeed some Indian companies who have entered the space and succeeded with their offerings, but many are still under the thumb of the RBI and what they’ll allow despite the difference in opinion by the Indian government itself. They—like China—have a very mixed position/stance on cryptocurrency: in some places, it may be acceptable for XYZ, but in others, it’s not acceptable for XY.
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In any event, regardless of where you live, you should consider using stablecoins. Stable coins are cryptocurrencies (including alt-coins) that are backed by real-world assets. This company, QuantmRE, is a great example of one that is backed by real estate. Another good example is IBM’s use of the Stellar protocol for doing business on the blockchain for enterprise purposes.
Most recently, Gemini (the exchange) announced their “GUSD,” or the Gemini-Dollar, is backed at a 1:1 by actual USD. Stablecoins are beneficial to investors and companies alike because they decrease the impact of regular cryptocurrency market volatility on their token/coin because of the fact that they’re tied to a real-world asset, if the market is extremely bearish it is not likely to tank as much as a non-stable coin would because it is backed by something that is not even on the market itself.
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How could the cryptocurrency ban in India affect the crypto exchanges?
Crypto Exchange Ban in India: Cryptocurrencies can never be banned but can be regulated. The recent news mentions prohibiting the use of private cryptocurrencies, but we never know what the term “Private” means to the government. Most blockchains are public, so the government can easily regulate them or monitor them to track the citizens.
As cryptocurrency exchange companies come under the law, whatever the government says is their final decision. Banning cryptocurrency is like banning internet in early 2000s, internet companies is now the biggest part of the economy. All the government can do is ask exchanges to follow strict KYC and track all the data to present it to the government.
Should crypto be banned from India?
Crypto Exchange Ban in India: Absolutely NOT. Cryptocurrencies are the new digital assets of the 21st century. If you don’t invest today, your kids will hate you in the future. Cryptocurrencies are the future currency of the planet. The rise of the adoption of cryptocurrencies and blockchain technology has paved the way for its ultimate rise as an asset class.
This is the future technology India shouldn’t afford to lose. India has always been delayed in adopting new technologies like 4G and Digitalization and better India doesn’t do the same with crypto. India can’t afford to lose this opportunity if it wants to top the charts in terms of development.
What things should I think about as a beginning investor?
Firstly, avoid believing in lies!
If done right, investing is much less risky than keeping money in the bank, which is often guaranteed to lose to inflation.
Look at the S&P 500.
A long-term investor has never lost money. The same can’t be said for cash.
(Source: Forbes)
Beyond that, find out why most investors fail.
Many people go through these emotional swings. It is better just to invest and largely forget about it.
The best investors just
- Invest today; don’t procrastinate or try to find the best moment to invest in markets.
- Control emotions. They either hire advisors or learn to control their own emotions. This sounds simple but becomes more difficult the longer they invest because moments like 2008 and 2020 will occasionally come along.
- Have a well-diversified portfolio, especially as they age.
- Hold dividend-paying assets and reinvest those payments.
- Don’t just get into the next big fad.