But there is something I am afraid of - when government realize that people switched to BTC they might try to punish Bitcoin indirectly.
They could ban bitcoin businesses, limit/close exchanges - simply speaking - complicate life for every bitcoin user in India.
It's definitely a plausible concern, but as it is, the volumes are way too tiny in order to get much attention from the government. That's why I expect the volumes to pick up even more in the coming months, and probably even years. But it's India we are talking about, and not a western/modern government. From that point it's even possible that they put certain laws to work in order to make it much harder for people to obtain and trade Bitcoin. Even a total ban is something you can't completely rule out. Only time will tell.
Yes, It would be bad if the government starts to ban Bitcoin in a country where it is needed the most. Bitcoin could stimulate a lot of informal
jobs in a country with a high unemployment rate. A lot of people are running towards Bitcoin for the wrong reasons... and this might just
draw the wrong kind of attention from their government and criminals who wants to hide their dirty money.
