India Bans Its Largest Fiat Currency Notes

[Sithara007]

They are already buying Bitcoins at very high prices.

Seems like the spike has ended. The exchange rates in localbitcoins are down to INR 60,000 per coin (down from the peak of INR 66,000 two days ago). It still represents a premium of around 20%, but the trend is downwards.

[Juggy777]

They are already buying Bitcoins at very high prices.

Seems like the spike has ended. The exchange rates in localbitcoins are down to INR 60,000 per coin (down from the peak of INR 66,000 two days ago). It still represents a premium of around 20%, but the trend is downwards.

That is good news for every body interested in buying bitcoins, some fools even said it would be touching 1,50,000 Rs and the global market has been keenly watching what it has to offer. Glad to see price out there are softening, so will the global prices also fall?

[Sithara007]

That is good news for every body interested in buying bitcoins, some fools even said it would be touching 1,50,000 Rs and the global market has been keenly watching what it has to offer. Glad to see price out there are softening, so will the global prices also fall?

I don't think that the transactions in India will be having any impact on the global exchange rates. The usage in India remains limited, thanks to the draconian laws and regulations. And from what I am seeing, Bitcoin just lost an opportunity to utilize the demonetization to widen its user base in India.

[Techie5879]

That is good news for every body interested in buying bitcoins, some fools even said it would be touching 1,50,000 Rs and the global market has been keenly watching what it has to offer. Glad to see price out there are softening, so will the global prices also fall?

I don't think that the transactions in India will be having any impact on the global exchange rates. The usage in India remains limited, thanks to the draconian laws and regulations. And from what I am seeing, Bitcoin just lost an opportunity to utilize the demonetization to widen its user base in India.

Nope, the spike hasnt ended. It will increase, again, it is starting to do so, and will soon be high again. I dont think the chance of demonetization to widen user base in India by the bitcoin has been lost,....yet. I fail to see how RBI will finish cash circulation in all areas within some weeks, I think it will atleast take 3 months or even more to finish it. By then, the user base will already have been widened in India, I think.

[bryant.coleman]

Nope, the spike hasnt ended. It will increase, again, it is starting to do so, and will soon be high again. I dont think the chance of demonetization to widen user base in India by the bitcoin has been lost,....yet. I fail to see how RBI will finish cash circulation in all areas within some weeks, I think it will atleast take 3 months or even more to finish it. By then, the user base will already have been widened in India, I think.

I have been to India, and although exchanges such as Localbitcoins are active there, the user base is very small. A lot of people still associate Bitcoins with the purchase of illegal stuff, and in general most of the users are in the 15-30 age range. The Indian mainstream media almost never mentions Bitcoin, and this is one of the main drawbacks in popularizing the crypto-currency there.

[Techie5879]

Other notes than 2000/- INR circulation has been almost stopped. All ATM transactions are yielding mostly 2000/- INR and if we try to transact below it (2000/- is the limit again) its saying no money. And getting change is very very difficult, as giving change of 2000 INR when a person is buying something that costs 50 INR, they have to provide a change of 1950 INR, which is very difficult to do as it will mean giving the people 195 notes of 10 INR, or 39 notes of 50 INR. So masses are not accepting 2000 INR always. Its a very difficult situation here.

Seems like you guys are having really hard situation there but this is transition phase and this ban may help Indian government to freeze really hell lot of black money. Regarding changes i think you guys can try online transfer or mobile payment wallet like oxygen wallet or something similar (have heard about them in television). However i think situation is even worst in remote areas where people have no access to banks or internet/mobile banking.

It wont help to freeze the black money anyhow. Dont you see? The ones with the money are either hiring employees to exchange their money (a person reportedly had hired 25,000 employees solely for this purpose), and the 2000 INR notes are helping them hoard up the money even more. Only the common people are the ones having problems, they are having to giving 195 notes of rupees 10 in exchange for 1 2000 INR note if a person is buying something worth 50 INR. The business in general has been put to a halt. People cant eat. Banks dont have notes that they need to exchange. ATMs have large notices in front of them saying that no money is present in ATM. People are bashing up each other to get in front of the queue. People are being killed. Choas is everywhere. Many people dont even know how to survive, so tell me, how will they even dream about investing in something as volatile as bitcoin?

[ajaxmoor]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

[Viscount]

It's favorable for bitcoin by all means

[croutonhexagon]

Although in my view government have done the best way to eliminate black money because all money from inside the room had to be taken out into light and this from now storing money would be tracked.

[Techie5879]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

Yes, even the great Amartya Sen, a Noble Laureate from India in economy has greatly critisized this move by stating, "To achieve something good, sometimes bad things happen before good, but it doesnt necessarily mean that all bad things are for the greater good."

Although in my view government have done the best way to eliminate black money because all money from inside the room had to be taken out into light and this from now storing money would be tracked.

Could you please explain your view? How can they expect to track the money? Refer to my previous post, already an industry has about started just for exchanging the money, people are hiring thousands to just exchange money, so how will government track the black money if the come in very small amounts at a time from various thousand sources?? Its impossible.

Meanwhile, the banks have somehow become vulnerable to hacking, i should say, as just some days ago, 70,000 INR was stolen off from an artist's bank, at midnight. So its a lose-lose situation for us.

[ajaxmoor]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

Yes, even the great Amartya Sen, a Noble Laureate from India in economy has greatly critisized this move by stating, "To achieve something good, sometimes bad things happen before good, but it doesnt necessarily mean that all bad things are for the greater good."

I was looking this up, and seems a lot of people are facing issues. Is this step actually working ? I would imagine all the money to be in the form of investments since their currency is much smaller than dollars, i.e 10 100$ bills are equivalent to a bundle of their biggest currency.

[Sithara007]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

Yes, even the great Amartya Sen, a Noble Laureate from India in economy has greatly critisized this move by stating, "To achieve something good, sometimes bad things happen before good, but it doesnt necessarily mean that all bad things are for the greater good."

Amartya Sen is a communist stooge, who got the Nobel prize purely due to political considerations. According to the opinion polls conducted by independent agencies, anywhere from 80% to 90% of the Indian population supports the demonetization drive.

[Pursuer]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

Yes, even the great Amartya Sen, a Noble Laureate from India in economy has greatly critisized this move by stating, "To achieve something good, sometimes bad things happen before good, but it doesnt necessarily mean that all bad things are for the greater good."

I was looking this up, and seems a lot of people are facing issues. Is this step actually working ? I would imagine all the money to be in the form of investments since their currency is much smaller than dollars, i.e 10 100$ bills are equivalent to a bundle of their biggest currency.

what I don't understand about this is that India didn't ban or change anything about their currency and it is just a "currency note" which was explained somewhere in the first couple of pages. and what I don't get is that why so many people are talking about Indian economy and their fiat getting banned.

[Techie5879]

Just read this. This sounds crazy, wouldn't this destabilize their entire economy ? Haven't other countries already implemented this in the past and have failed ? I can't see why an economist in the right mind would take this step.

Yes, even the great Amartya Sen, a Noble Laureate from India in economy has greatly critisized this move by stating, "To achieve something good, sometimes bad things happen before good, but it doesnt necessarily mean that all bad things are for the greater good."

Amartya Sen is a communist stooge, who got the Nobel prize purely due to political considerations. According to the opinion polls conducted by independent agencies, anywhere from 80% to 90% of the Indian population supports the demonetization drive.

Could you please provide the link? I can see pretty much no one supporting this move, along with the media. And I dont get your authority to call someone a communist stooge, especially someone from my state.
most people are against this move, open your eyes. Please provide me the link where you got that info.

[Sithara007]

Could you please provide the link? I can see pretty much no one supporting this move, along with the media.

Here are a few links, for you:

https://blog.inshorts.com/2016/11/Pulse-of-the-Nation-500-1000-Rs-Notes/ (Inshorts is India’s highest-rated news app, and IPSOS is a global market and opinion research specialists).

http://timesofindia.indiatimes.com/india/Over-80-percent-dont-mind-inconvenience-of-demonetisation-says-C-Voter-poll/articleshow/55566700.cms

And even Pew Research think that the popularity of the current government is at peak levels.

http://5forty3.in/first-hints-of-a-namo-tsunami-after-demonetization/

[iamnotback]

Coming to a country near you soon...

The war on cash is in full swing. The whispers behind the curtain are starting to get louder. The headlines in Australia demonstrate how the press is already conspiring against the people. The new slogan rising is Cash is for Criminals. ABC of Australia ran the story:

Cash is for criminals: Why we should scrap big notes

[Dudeperfect]

Adding some news headline since this move, worth reading

1) No cash, no plastic: India's demonetised economy rushes towards cryptocurrency.

2) India’s rupee restrictions are boosting demand for bitcoin.

3) Digital Currency the ‘New Normal’, says Indian Finance Minister After Cash Curb.

4)  Why Bitcoin Will Succeed in India in Just Two Years.

5)  India Encourages ‘Mission Mode’ Digital Currency Adoption.

[iamnotback]

Ah yes I was thinking it was 500 ounces.
500 grams is much less, but I still doubt the average person owns $20,000 worth of gold.
This will still only have an effect on the very wealthy. Some might buy some Bitcoin, but I assume most are going to hide money in offshore accounts and companies outside their country.

The intended effect is that it will be impractical to use gold as form of tax avoiding cash. You can bury gold in the ground and never use it, because that it no threat at all to the government's desire to tax everything that moves. Have fun eating your gold or watching it sit there useless in the ground while the economic opportunities move on without you.

The elite are moving the tangible economy to electronic currency that is tracked for taxes.

They will use the poor as a weapon against the middle class. The poor will avidly support increased taxation because the government will promise them free things. In India, the government is recently offering a basic level of free food and medical care system support to the indigent. This is a big deal because in the past 1/3 of Indians only ate once a day.

The poor see these increased taxation as ending corruption and funding the support for the poor. They don't realize it is the laying the seeds for tax slavery.

But we in the crypto-currency currency arena can offer the poor a better deal than what the government can give them. We can offer them a job in the virtual economy where they can become independently a middle class person. And then they will hate taxes.

I am working on this now. Steem(it) was the first (failed) example. We can onboard the billions into crypto-currency by giving them currency when they do work on a social network. We can change the economy of the world.

Tinfoil hats are doing nothing. They are stuck in an unimaginative old world fight over tangible resources. Iron used to be a precious metal. Everyone needs to understand we live in an age of surplus and we are moving to a Knowledge Age:

You will probably need a week or two of studying the thread slowly.

I will be the first to admit I needed a week to fully absorb the following works of AnonyMint.

The Rise of Knowledge <--- READ THIS
Understand Everything Fundamentally

Together these are quite simply the most insightful piece of economic theory I have ever read.

If the author is right and I think he is we are all in the midst of a tragedy of epic proportions.  It is sad unstoppable and will devastate the lives of much of humanity.

...

[CyberKuro]

Hello There,

India bans top currency notes such as Rs.500/- and Rs.1,000/- to prevent black money. Now there are only three notes in circulation Rs.10, Rs.20 and Rs.50

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

Google for more news links.

Yes, There are some preventive measures taken to deal with the situation but still it is one of the masterstrokes by India prime minister Narendra Modi against black money.

How do you see this action and what kind of impact this will create on the bitcoin in India?


P-S : Adding some news headline since this move, worth reading

1) No cash, no plastic: India's demonetised economy rushes towards cryptocurrency.

2) India’s rupee restrictions are boosting demand for bitcoin.

3) Digital Currency the ‘New Normal’, says Indian Finance Minister After Cash Curb.

4)  Why Bitcoin Will Succeed in India in Just Two Years.

5)  India Encourages ‘Mission Mode’ Digital Currency Adoption.


Best
Dudeperfect

Interesting news about India and increasing demand for bitcoin since government bans Rs.500 and Rs.1000.
We know that fiat money has some disadvantages which could covered by bitcoin such as
Sandeep Goenka stated: “With credit cards, you have to pay VISA/Mastercard 2-3 percent on every transaction and you get the money after a few days, and sometimes in case of a chargeback, you don't. None of these problems exist in Bitcoins.”
But, what I concern is higher price to buy bitcoin there. It seems unfair if we could buy BTC1 / $750 outside the country but in India exchanges sell it about $100-200 higher than market price.
One bitcoin on the Indian exchange Unocoin is worth 55,405 rupees, or $817.97, at the time of writing. Dollar-denominated bitcoin currently costs around $709. and this>>>
Toward the end of November, the premium was soaring further, as the price to buy bitcoin reached $985 while Indian bitcoin exchanges continue to push for adoption.
I don't know for sure is it good or not for people there, but this mean increases adoption and higher price of bitcoin.

[Dudeperfect]

Hello There,

India bans top currency notes such as Rs.500/- and Rs.1,000/- to prevent black money. Now there are only three notes in circulation Rs.10, Rs.20 and Rs.50

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

Google for more news links.

Yes, There are some preventive measures taken to deal with the situation but still it is one of the masterstrokes by India prime minister Narendra Modi against black money.

How do you see this action and what kind of impact this will create on the bitcoin in India?


P-S : Adding some news headline since this move, worth reading

1) No cash, no plastic: India's demonetised economy rushes towards cryptocurrency.

2) India’s rupee restrictions are boosting demand for bitcoin.

3) Digital Currency the ‘New Normal’, says Indian Finance Minister After Cash Curb.

4)  Why Bitcoin Will Succeed in India in Just Two Years.

5)  India Encourages ‘Mission Mode’ Digital Currency Adoption.


Best
Dudeperfect

Interesting news about India and increasing demand for bitcoin since government bans Rs.500 and Rs.1000.
We know that fiat money has some disadvantages which could covered by bitcoin such as
Sandeep Goenka stated: “With credit cards, you have to pay VISA/Mastercard 2-3 percent on every transaction and you get the money after a few days, and sometimes in case of a chargeback, you don't. None of these problems exist in Bitcoins.”
But, what I concern is higher price to buy bitcoin there. It seems unfair if we could buy BTC1 / $750 outside the country but in India exchanges sell it about $100-200 higher than market price.
One bitcoin on the Indian exchange Unocoin is worth 55,405 rupees, or $817.97, at the time of writing. Dollar-denominated bitcoin currently costs around $709. and this>>>
Toward the end of November, the premium was soaring further, as the price to buy bitcoin reached $985 while Indian bitcoin exchanges continue to push for adoption.
I don't know for sure is it good or not for people there, but this mean increases adoption and higher price of bitcoin.

I think the price will always be higher than international markets because the charges for foreign remittance are high and also there are currency conversion fees and we have to pay tax like service tax (around 0.15% to 15% depending upon cases) on the top of that amount so it will cost the same for resident Indian buyer to purchase from  International markets unless he is NRI (There are some provisions for NRI where they can maintain account in USD). I am working on the solution and in the process of research. Let's see what happenes.

I have another good news, Ground zero merchants from India are also getting aware about digital payments (although they are using fiat now but still they are getting used to digital payment technology) and that's very good sign for bitcoin and other cryptocurrencies.

Picture from the internet : A local street seller from India with a board Paytm accepted here. Paytm is a fiat wallet (backed by Alibaba), it is almost same as paypal but it is much more convenient and cheaper to use.

Now you anyone convert his bitcoins in Paytm cash, click following link to know more..

How to Conver Bitcoins in Paytm Cash?

Best
Dudeperfect