Cryptocurrency is a very new concept. Although it was started in the year 2010 itself in the form of bitcoin (BITCOIN), still it is very new in today’s date if we compare it with gold or stock market. Cryptocurrency was prevalent in developed countries such as America, China etc. for a long time, but in India it has come to the fore only a few years ago.
Cryptocurrency Status in India
India is a very big nation. India comes second in the world when it comes to population. Many people here are either educated or very poor. That is why it is not possible for everyone to understand a complicated concept like cryptocurrency. Cryptocurrency is so entangled that only a very few people have complete information in its ware in India. Now under this circumstance it is not possible for any country to recognize cryptocurrency.
Some reasons why cryptocurrencies are not allowed in India:
Reason no. 1
Any country has to do a lot of thinking and thinking in taking any constitutional decision, mainly in a very big country like India where people, their costumes, their food, language, etc. The government does not even think about whether it will really benefit the people before taking big financial decisions like cryptocurrency. Because the crypto market is so unpredictable, it can be overwhelming to make a decision too soon.
Reason no. 2
The country is run by the circulation of money. You and we keep our money in banks, the bank gives loans to big companies. Companies increase their business from it and bring employment in the country. This is how money operates in the country and ultimately the economic recovery of the country comes. But when people start investing in cryptocurrency then banks will not get money. Then the bank cannot further give loan to any company or any company will be able to do business and the economic system of the country will not improve. Considering all this, as of today, the Government of India is taking some time to recognize the cryptocurrency.
Reason no. 3
The habit or greed of investing in cryptocurrency is driving everyone away from gold or any big long term investment. This thing can bring crisis to the economy of a nation. Gold has been around since the exchange of money started. The price of gold is always increasing because it is a metal. Any metal like gold, silver, etc. is limited in one way in the world. When the people of the country invest in all this, the money keeps on increasing while staying in the country. The image of the country increases financially in Biswa Darbar. That is why our government is shying away from recognizing cryptocurrency immediately.
Reason no. 4
Cryptocurrency means digital currency has come in many ways and will keep coming. That is why which coin will remain in the future and for how many days, no one can answer it. Barring a few coins, almost all cryptocurrencies can be made as much as you want. And the thing which has no end or whose quantity keeps on increasing, its value does not work or increase very slowly. This is also one of the reasons why the Indian government is worried about it.
Reason no. 5
The biggest reason is inflation. In order to control the currency bench or at the time of any one VET disaster, the government does not print more and more money so that the economic condition of the country can be handled. Similarly, if the need arises, the country is also saved from economic crisis by demonetization. But if more and more of the country’s money is invested in cryptocurrency, then the government will not be able to take such big decisions and it may not be in the heat of the country.
Reason no. 6
And there is a big reason, not being able to keep an eye on money. When the money is in crypto, then no one will be able to know how much money went to whom, when and why. Due to this, perhaps a large amount of money can also go to some wrong people. This can be a cause of concern not only for one country but for the entire world.
Remember: This article is for education and awareness only. Do your research before investing.
NOTE: This article is only for education and awareness purposes. Please do your research before any investment.