by Guest Post
As I write this article the price of bitcoin and other cryptocurrencies are crashing. The big sell-off is happening as we speak and there are a number of things that have caused this. The biggest impact has been the announcement by the Indian Government that they are making cryptocurrency illegal. India is one of the largest holders of BTC and those with a Bitcoin Wallet is in danger of having the account closed.
Why India Banning Cryptocurrency Is A Crazy Decision
If you have ever visited India, you will see a country that is hugely underdeveloped. The gap between the rich and poor is one of the most extreme on the planet. One of the main reasons for this is corruption at the highest levels along with making crazy political choices. The country is spending billions on a space problem when a very large percentage do not even have access to the internet. The speed of the internet in most places is so slow that it takes three days to download on a half hour TV show. This is putting the country at a huge disadvantage and when you consider how many Indians are employed in IT is shows what a ridiculous policy choice.
Recently the Government made a huge error that ended up costing the country billions. They decided to ban their old currency notes to try to end the massive money laundering that takes part. One of the reasons why there is so much money laundering that takes place is due to the huge taxes Indians have to pay to bring their money back into the country. If they eliminated this, they would eliminate the black market but instead, they choose the wrong option which greatly backfired.
They have not learned from their mistakes by banning cryptocurrency as this will also greatly impact the country on many levels. They will make a vast number of Indians who own cryptocurrency lose lots of their money which will impact the economy. If they had followed Japan‘s lead and made bitcoin legal tender, then they too would have seen an increase in around two percent GDP, but instead, it will have a negative impact.
India also has a major problem with its citizens being able to get bank accounts and many are unbankable. Bitcoin wallets were the perfect solution for anyone with one click could download a BTC wallet and get instant access to sending along with receiving money in the form of crypto.
India had the potential to be a world leader in cryptocurrency, and they could have even produced their own which provided each citizen with a living wage. By doing that they would help to end the slums found all the major cities in India. No doubt they will continue to make the complete opposite decision to what is required to keep the country in the dark ages instead of at the forefront of innovation.
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