Bitcoin and Cash India
3 min read

Indian Government dislikes Cash, What about Bitcoin?

By Editorial Team

It was quite a contentious decision. Last year the Indian government made the decision to ban 85% of the cash that they had in circulation. It caused chaos at ATMs and money exchanges around the country as people tried to exchange the cash in particular denominations.

This was done in order to limit the use of cash for nefarious purposes and also to reduce tax evasion. Even though this did indeed cause quite a disruption, it is a great opportunity for the citizens to adopt Bitcoin and other cryptocurrencies.

This is not the first time that the Indian government has struggled with Monetary policy issues. The 500 and 1,000 INR bills were no longer legal tender. These were the most popular denominations for most Indians so the move caused a lot of pain.

A Broader Issue

The issue is much broader than general concerns about tax evasion. A large proportion of India’s population remains unbanked and they live on these smaller cash payments on a daily basis.

Even for more middle class members of the population, it was a cursory warning as to the power that the government has over the affairs of their citizens. The notion that with the mere stroke of a pen, a great contingent of your wealth is no longer legitimate.

This, however, could have been effectively countered for those who invested in Bitcoin. It is no surprise then that the price of the coins has surged in the local currency.

Bitcoin for the Unbanked

Given this increasing demand for Bitcoin in India, demand for Bitcoin services are also increasing. For example, popular wallets such as Unocoin as well as exchanges such as Zebpay are doing really well in the country.

There are also a number of new start ups that are opening their books for business in the country. For example, a new start up called BitBox is looking to provide free trading on its platform. It will only charge users for withdrawal and deposit fees.

This is indeed a great concept as it aims to make transacting in Bitcoin fast and affordable. The coins will either be kept on the exchanges in a safe and secure cold storage or withdrawn at any time.

Store of Value

Although Bitcoin will greatly enhance the manner in which people can transact in India, Bitcoin also provides a great way for citizens to store their wealth with a deflationary asset. India is one of the countries with the largest demand for gold.

Citizens buy alot of gold precisely as they view it as a safe place to preserve their fortunes over time. As Bitcoin is often compared to a “digital gold”, it could provide them with another safe haven asset which diversifies.

Moreover, if one was to compare the performance over the past 5 years of Gold and Bitcon, Bitcoin not only provided for a store of wealth but also a great increase in it.

Featured Image via Fotolia

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Latest Posts

Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 18, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read
crypto com
Crypto.com Exchange Review 2022: A World-Class Crypto Exchange
crypto com

Crypto.com Exchange Review 2022: A World-Class Crypto Exchange

June 10, 2022 30 min read
OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
Binance partners with the weekend
Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour
Binance partners with the weekend

Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour

June 3, 2022 2 min read

Related Posts

OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
21Shares Releases Sixth State of Crypto Report
21Shares Releases Sixth State of Crypto Report: Summary
21Shares Releases Sixth State of Crypto Report

21Shares Releases Sixth State of Crypto Report: Summary

June 2, 2022 3 min read
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

June 2, 2022 2 min read
Regulators are “Not Allowing” Banks to Engage with Crypto
Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto
Regulators are “Not Allowing” Banks to Engage with Crypto

Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto

June 1, 2022 2 min read
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution

US Conference of Mayors Introduces Blockchain Resolution

June 1, 2022 2 min read
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40Increase
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40% Increase
Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40Increase

Tron Passes AVAX and SOL in TVL, Claiming 3rd Spot After 40% Increase

May 31, 2022 3 min read
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours
All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours

All Eyes on Bitcoin as $60 Billion Flows into Crypto in 24 Hours

May 31, 2022 2 min read