Demonetisation effects

[Pattberry]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

[bitcoinisbest]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

This is right only by pushing will not happen to digital payment. Because the basic facility like roads, network, toilets, public transport in majority of villages doe snot have it. So this will be a big task for any government.

[lordquanta]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

Every attempt by Govt will fail unless they drop transaction charges levied on online payments like debit/credit card transactions. Consider this current hypothetical situation, if person has 1Lac cash with him then he could purchase goods worth 1Lac in reality. However if he purchase goods using debit card then he pays 2% charge, thus he is loosing effectively 2 thousand rupees. Nobody from India willingly pay 2% just for ease of transaction.
If Govt pushes harder then in next election people will simply decimate ruling party.

[jawed]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

[Forbiddenone]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

[lordquanta]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Could you please share the statistics backing up your claim or any survey results? This would be helpful in understanding the magnitude of the impact. Knowing how much destruction has happened would be instrumental in assessing current situation.

[jawed]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

Where are you living? On the moon? Get out of the comfort of ur house and check the reality outside, dear sir.
Most of the powerlooms in bhiwandi are closed for last two months. Lack of cash to pay daily wagers.
Maharashtra revenue department registered a loss of stamp fees estimated at 1800cr
Many mnc's and major production houses reported severe drop in sales eg Nestle India 1000cr
Most of the rural areas don't get regular peer supply. There are no cellular towers in most rural areas. Despite the massive financial breakdown
of most western (developed) countries from 2008 to 2011, India managed to survive only because of parallel cash economy. Now you have successfully killed it. Yet BRUTUS IS AN HONOURABLE MAN.

[lordquanta]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

Where are you living? On the moon? Get out of the comfort of ur house and check the reality outside, dear sir.
Most of the powerlooms in bhiwandi are closed for last two months. Lack of cash to pay daily wagers.
Maharashtra revenue department registered a loss of stamp fees estimated at 1800cr
Many mnc's and major production houses reported severe drop in sales eg Nestle India 1000cr
Most of the rural areas don't get regular peer supply. There are no cellular towers in most rural areas. Despite the massive financial breakdown
of most western (developed) countries from 2008 to 2011, India managed to survive only because of parallel cash economy. Now you have successfully killed it. Yet BRUTUS IS AN HONOURABLE MAN.

Your reply somehow justifies the black-money economy. It is true that during global economic slow down, India didn't get affected much because of cash-economy (black money).  Initial objective of demonetization was good however it is the implementation that failed miserably.  The mismanagement wrecked havoc in life of all parts of Indian society. Lower economical strata and Rural strata of society felt the impact hard.  Situation has improved a lot. Now there is less cash crunch to cover daily expenses of people. At the same time it is NOT enough to cover the daily expenses of business which hand out daily wages to the people.
On top of that banks are playing dirty tricks by levying charges on debit/credit cards. Now who the hell will move to card payments if you are paying tax for using your own money. This is daylight robbery. 
Other excuses for demonetization like counterfeit currency has been debunked recently with neighboring countries have successfully created and circulated those notes.

[zahra4577]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.
Has it become safe heaven for hoarding black money?

[lordquanta]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.

No, definitely not. In fact current bitcoin price is growing because all over the world it is increasing. Currently world wide bitcoin price $1,167 to $1200. 

Has it become safe heaven for hoarding black money?

AFA India concerned most bitcoin wallet or exchange has KYC procedure and they have disclaimer about they will share that information with Govt of India.  That does not mean one can not store black money in bitcoin.

[bitcoinisbest]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.
Has it become safe heaven for hoarding black money?

Well it could be but only thing is that they will have to purchase btc in cash and sell it in cash. Again if they have large qty then selling may be difficult as there should be buyer who has to agree to the rate and qty as well.

[vaibhavsingh]

Unless Modi government stays here for 5-10 years no much use of demonetisation.