Bitcoin Forum

http://www.thehindu.com/news/national/live-narendra-modis-address-to-nation/article9320548.ece

From midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender. "These notes are just papers from tomorrow," says the prime minister.

Taking the nation by surprise, Prime Minister Narendra Modi on Tuesday night announced demonetisation of Rs. 1000 and Rs. 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

In his first televised address to the nation, Mr. Modi said people holding notes of Rs. 500 and Rs. 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.

There will be other ways found by those who own black money and illegal gold/drug trading will increase now. But still it's a great step by the Government to ban these notes. All those who have black money will need to exchange it today itself or those notes will be worthless tomorrow. Still those who have these notes will need to declare it.

You can declare income on which tax has not been paid. But what about income obtained through illegal means?
This is a one-time measure, but the government cannot expect this to put an end to bribery, corruption, etc.
Systemic change is required.

What a initiative taken by government. This is something out of the box for the government to do it.  Many of the politicians itself have the money and taking this bold step is really appreciated. Now let us see how much it will be organized.

This is simply shifting the problem, not solving it.

Will they eventually ban cash completely?

its not about shifting the problem its about countering black money and counterfeit currency ,the government earlier given a time to settle the illegal funds accumulated by paying 45% tax and that period is over and now all of sudden they demonetized higher value notes and gave the citizens little or no breathing time to change the currency.So from tomorrow you wont be able to spend 1000 and 500 rupees ,so people holding large amount of cash at home wont be able to change it ,the only solution is you can submit your notes in bank and make a declaration and you get one month time to change all your currencies through bank

There will be a limit to the amount of cash that can be declared and hence those who own illegal cash will lose all that money as it will be equal to trash. It won't stop bribery but there will be now other means used to store black money instead of only relying on notes. It's the first step atleast.

Yes, it is a step which will help catch people who had stored their ill-gotten wealth in cash.
People will become smarter and turn to golds (and possibly bitcoins  :P ) now.
But structural changes are required to curb black money. These one-time measures won't work.

Now the game starts. Now bitcoin rate will go crazy in india, now people find alternate ways.

Guys, this step will be a game changing thing in india. Now rich becomes obviously poor.

This has really been awesome
Am sure many people and politicians are losing their mind.😂

That's a very bold and surprising act by our hon. PM Modi. Finally, the black money would get back to the government and the corrupt people would just sit and cry  ;D Although there is some chaos as people have less 100 rs notes but it would soon get back to normal.

btw, would there be any significant effect on the price of bitcoin after this ?

Well certainly may not be the case. Assume you hold 10 btc and the buyer is ready to give you rate + some % premium and will give you 500 and 1000 notes which basically is black money. So then why will you like to land in the trap for yourselves when you know IT will be watching and coming back to you for this transaction. So you will avoid such cases.

How would this have any effect on the bitcoin sale? Nobody will sell their bitcoin for 500 or 1000 notes, right?

This move although being hailed by masses as a 'revolutionay' of sorts is just another in a series of attempts by governments worldwide in the Global War against Cash. The central banks are pushing hard to eliminate every single trace of cash from the economy which they offcourse can't monitor. All the reasons for which governments/bankers hate bitcoin, apply to cash too and they are hellbent on destroying whatever is left of individual's liberty. This is just a step towards total elimination of cash. What may follow afterwards is beyond people's worst nightmares. How about Negative interest rates for starters?

Guys who made a fortune in black money will be smart enough to save his ass,and asset.Those greedy ass people who keeps there black money in form of cash are really dumb and now they are trapped.They should have learned about bitcoin.That's the only reason i love bitcoin.It gives us power to control our money and no government can freeze our account.

I got to know news last night.. It would affect general people. Those who are living in village or road side vendors will face problems. So, those who are not aware of this Rs 500 and Rs 1000 they will be in trouble.

I am feeling very sorry for Indians.. :(

But its a great opportunity those who are using BITCOIN. At this time BTC will save you.. :) .

Exactly! The black money holder will be in trouble and politicians are thinking why MODI has announced this rule...  ;D

Anyways, Hats off to Modi..A Dynamic and smart PM of India.

What about the black money generated in the future? People will be hesitant to store them in the form of currency notes.
That is where alternative assets like Bitcoin can step in.  ;D

Exactly and it will be postive thing for bitcoin price  ;D

To buy btc you will have to make payment which will happen via bank unless you make cash payment with 100 Rs note. So anyways your 500 & 1000 is out of scope. So overall you would anyways be left without  much. BTC may not be a life savior much.

You are totally out of your mind and did not understood what we have been talking here. We are talking about future when new notes will be in circulation then people who keeps black money in cash might have learnt their lesson by then and will move to things like bitcoin to be on safer side which will be good thing for bitcoin overall.

How will Bitcoin be impacted?

http://www.firstpost.com/business/rs-500-rs-1000-note-ban-industry-terms-it-watershed-moment-in-fight-against-black-money-3095596.html

Sathvik Vishwanath, CEO and Co-Founder, Unocoin: "The intentions are good but very difficult to achieve. If going cashless is the only way forward, certainly the bitcoin which is borderless trustless and transparent currency makes more sense".

पर बिटकॉइन किससे खरीदोगे? आखिर में तो कैश का ही इस्तेमाल करोगे ना? बेचने वाला क्यों अपने सिर मुसीबत लेगा ५०० और १००० के नोट लेकर?

It's about what will happen in future not now.

I don't think government will consider bitcoin one bit. While it is a borderless transparent currency they have no control over it, and can't regulate it. As long as the government can manage their digital funds through bank accounts well, the population would be happy.

Yes seems so that govt next plan would be for bitcoin where they may think how can they monitored this and if they cant we know what the results would be . So let us wait and watch if it will sustain or will it close down. All the efforts are being done by exchanges to let them know about the technology but we know the government.   ;)

I agree that this is a bold decision by government and our prime minister deserves accolades for this but corruption has a deeper roots and is not going to wipe out easily

Agreed. Corruptions has Very deep roots.

Many People have their money in Swissbanks and Foreign Properties.

But peoples who will be affected will be the ones who have sacks full of CASH stored. Also As media is saying that Pakistan who was duplicating notes will be greatly affected by this move.

For Common people it is a Small Problem.

But for many who have more than 2.5 lakhs at home but are legit will also get trouble bcoz of this.

Bitcoin Implementation will only give rise to more corruption as black money holders will find an easy way to store their Black Money.

By the way its not gonna happen until gov comes with the best idea to be able to Monitor it.

Initially the idea seemed to be good, but it is not well implemented. All the people are struggling to get their old notes get exchanged. Banks and atms are still falling short of new notes even after 5 days.
There has been a biggest mistake done, they didn't do their homework. The dimensions of new 2000rs note is different and so all the atm machines must be reconfigured thereby causing further delay of 2-3 weeks.

We are going step forward in development. Due to this most of them are affected with financial crisis.

I think this decision will not help to catch corrupt people who have illegal money because big whale already transfer their black money to Swiss bank.First need to catch them who have money on  Swiss bank later taking this decision would be better.I think now only few people have black money but Common people will fall in big trouble.lets see how govt. can handle this situation ;)

The Government is going to take more serious actions against those black marketers. The gold they own above 3 lakhs will be taxed and those who own over 2 properties too will be dealt with in coming days. I fear that bitcoins too can be affected as it's considered as black money.

Absolutely bitcoin may come under the purview and since there is no direct control of the government and untraceable to the extent might result in closure of the same. Just thinking  how will exchanges survive since they got funding and need to pay back if the closure comes. How will they be able to pay?

Any source for that ? How can the government even figure out who owns how much gold without doing a raid at this moment.And if the government does organize such kind of a raid, it will be public news and all the gold with go hiding either way.

Yes, and even the real estate sector has caught the heat by having all the property rates slashed by nearly 30% their actual rates.
Now, the builders are going to suffer hard because people will be getting a chance to buy homes at slashed rates at prices which are on-paper.

erikalui I dont have more than 1 lakh rupee am safe.haha...

"The gold they own above 3 lakhs will be taxed and those who own over 2 properties too will be dealt with in coming days."
gold own above 3 lakhs this would be nice action but I dont think properties action will work because corrupt people know they will be caught they don't register properties their own name.most of the big corrupt people buy properties abroad even their business also outside of country so Govt. never been catch them.

But that's why GST is going to get implemented, where all the "BENAMI" transactions are going to get seized by the government giving a final warning to surrender themselves, or strict actions are going to be taken in the future. I wanted an "INDIA" like this, and I can see it coming.

Well, thats what they were planning to clamp down on. If a servant owns a property, then they will look into it. If someone who doesn't own earn enough to own a property and still owns it, then they will investigate his source of income for that purchase.

it was good the value of bitcoin will  increase now people will invest in bitcoin boz india n gov is dum   :D

I think government has done a very good job,at least of some of black money holders will get good shock.ya thanks to media unnecessary rumor saying"black money will now be stored in form of digital currency,bitcoin" ,in india bitcoin popularity will rise.

It is not good for bitcoins actually, because it is giving a negative appearance to bitcoins in India due to the negative publicity that our media is doing here. They are saying that "Bitcoins are just used for the wrong purposes, from black money to terrorism". And if this is the way bitcoins will come in front of Indians, do you really think people will actually take any interest into this?