Indian Economy rising at slowest pace - Should they consider Crypto-currency?

[oaz7t]

This is regarding the views and opportunities that Indian economy can get through crypto currency looking at the current scenario of India being entering into "Recession period".

This period is thought to be coming because of introduction of Demonetisation in 2017-2018 and followed by introduction of GST into the system. (Referred article https://www.indiatoday.in/news-analysis/story/it-is-not-recession-economy-is-growing-but-at-slower-pace-question-is-why-1594928-2019-09-03)

Overlooking all these scenario I do believe that they should have gone for the Crypto currency acceptance and make the digitalisation more or less stronger than what they would have done earlier. (Demonetisation etc.?? )

I mean crypto could have at least made the influx of money by different platforms of trading, gambling, exchange of products and services etc. The whole process would ave benefited them with the Tax and thus government could've gotten the benefits for the same.

What are the thoughts ?

[1715446960]

1715446960

[Theb]

India's current economic situation is no way similar compared to Malta, Gibraltar, or Bermuda to see that the crypto industry have an immediate effect in their economy. For one they are a nation of more than a billion people one industry that cannot even touch a third of those citizens won't have an immediate affect in the economy. Remember that bigger countries are risking a lot more when they are rushing their regulation when it comes to the crypto industry because they have more to lose rather than gain.

[shield132]

There was some news published here and it seems a lot of people in India are interested to put money in crypto but what happens in reality is that India is going to ban bitcoin and set serious penalties on using cryptocurrencies.
By the way I still doubt acceptance of cryptocurrencies can do any significant or even non significant improvement in their country's economy if we consider the fact that India is a very poor country with more than a billion people.

[hugeblack]

When we talk about a state economy, cryptocurrencies will be a small part of this huge economy. Accepting cryptocurrencies will help individuals, but sharp price volatility is a double-edged sword for governments.
I do not expect that any country suffering from economic problems may resort to such solutions, especially since they may worsen the problem in the short term.
Do not forget that cryptocurrencies are easy to manipulate by countries so it will make India subject to this volatile market.

On the other hand, interest is less than the money and legislation in monitoring these currencies so they simply ban it.

[Ayiranorea]

When we talk about India, the economy rise at a slower pace is mainly due to political failure. Each and every scheme or taxation plans have never been discussed or surveyed before it is implemented. Maybe this will get good economic growth in the long term. When we focus for long term we need to be prepared to meet the immediate impacts. This is never done, but after implementing they keep on modifying. This is not fair and that is the perfect reason for economy slow down in India.

Now to withstand the present situation the government have taken fund from the reserve which was saved for years. Till date that's the one that kept the economy of India high.

[javadsalehi]

Cryptocurrency is only a kind of currency. Bitcoin has been created to making the payments easier. Nothing more.
Economic growth of any country is affected by human resource, natural resources, capital formation and technological developments.
The total income of a country is determined by the goods they produce.
How bitcoin can increase the total goods that are produced?
I don't know how is the economic condition in India. But I don't think bitcoin can solve big economic problems.

[avikz]

This is regarding the views and opportunities that Indian economy can get through crypto currency looking at the current scenario of India being entering into "Recession period".

This period is thought to be coming because of introduction of Demonetisation in 2017-2018 and followed by introduction of GST into the system. (Referred article https://www.indiatoday.in/news-analysis/story/it-is-not-recession-economy-is-growing-but-at-slower-pace-question-is-why-1594928-2019-09-03)

Overlooking all these scenario I do believe that they should have gone for the Crypto currency acceptance and make the digitalisation more or less stronger than what they would have done earlier. (Demonetisation etc.?? )

I mean crypto could have at least made the influx of money by different platforms of trading, gambling, exchange of products and services etc. The whole process would ave benefited them with the Tax and thus government could've gotten the benefits for the same.

What are the thoughts ?

Indian economy will go down further and there are numbers of reasons to it! I hope my post won't get deleted by some Bhakts! 

As per the official data, India's GDP is growing at 5% rate. But the actual growth rate is way below this number. When Modi government took over the country's administration through their "divide and rule" politics back in 2014, the economy was already slowing the signs of slowing down! So in 2015, they have changed the method of calculating GDP so that an inflated data can be published. See the reference below,

https://www.wsj.com/articles/india-changes-gdp-calculation-method-1422622762

If we had stayed with the previous method, the current data would have shown somewhere around 3% growth! So our GDP calculation method is even a bigger scam that no one talks about! What we are seeing is already inflated and far from actual! Now coming back to the discussion point.

Adopting cryptos will definitely open up many major avenues for the youths to make money. New business opportunities will come up and create jobs. Millions of people will start making money from different activities related to cryptos. Even though the overall volume is currently very negligible, but with right kind of policy and promotion, it can make a serious positive impact on the economy by allowing additional cash flow. But Indian politicians are orthodox by nature and everything new is seen as a threat rather than an opportunity!

When Indian government came to know about cryptos, they called it Ponzi scheme! Instead of thinking about the positive sides, they started looking at the risks. This is kind of an attitude which harms the economy in long run and we are getting to see a glimpse of it now! The matter is now subjudice so lets hope for the best!   

[bryant.coleman]

I wouldn't rate a 5% growth as too slow, especially if the inflation is much lower than that level. During the UPA2 regime, the inflation had breached 14% level and the GDP growth was around 6%. But in the long term, the picture is not very rosy. NDA was regarded as a fiscally conservative alliance, but in the mad rush for votes they abandoned most of those principles and took a more populist approach.

The basic issue with India is the uncontrolled growth of the population. It is not easy to give jobs and education to 1.5 billion people, especially when the population continues to grow at a rapid pace. And since India is a democratic country, the groups with larger population will be having an increasingly powerful hold on the government. As a result, the government will be forced to dish out more and more populist schemes, thereby ruining the economy.

[jrrsparkles]

This is regarding the views and opportunities that Indian economy can get through crypto currency looking at the current scenario of India being entering into "Recession period".

This period is thought to be coming because of introduction of Demonetisation in 2017-2018 and followed by introduction of GST into the system. (Referred article https://www.indiatoday.in/news-analysis/story/it-is-not-recession-economy-is-growing-but-at-slower-pace-question-is-why-1594928-2019-09-03)

Overlooking all these scenario I do believe that they should have gone for the Crypto currency acceptance and make the digitalisation more or less stronger than what they would have done earlier. (Demonetisation etc.?? )

I mean crypto could have at least made the influx of money by different platforms of trading, gambling, exchange of products and services etc. The whole process would ave benefited them with the Tax and thus government could've gotten the benefits for the same.

What are the thoughts ?

In country like India everything takes time to get an effect even the laws implementation takes years so making the cryptos legal won't change anything from the current condition because people already using cryptos there and only restricted by banks for selling and purchasing this leads to shut down the exchanges on india but still sites like localbitcoin have decent amount of people doing trading there.

Indian economy is slow die to their poor financial policies and lot of corruption not due to the weakening of their fiat I guess.

[RapTarX]

If it can have the effect through influx money from gambling, trading or any other way, it can efflux as well. Economic growth is beyond the currency. If govt can't have a growth with fiat, I doubt they will be able to do it with crypto as well. Cryptocurrency will allow its people to have financial freedom which may lead to disaster as well. Subcontinental countries are mostly corrupted, the whole world is though.
In case, cryptocurrency become legal and people start to use it, a significant inflation will occur as well as a significant financial crisis. As a result, it will hamper the economic growth of India.

[audaciousbeing]

This is regarding the views and opportunities that Indian economy can get through crypto currency looking at the current scenario of India being entering into "Recession period".

This period is thought to be coming because of introduction of Demonetisation in 2017-2018 and followed by introduction of GST into the system. (Referred article https://www.indiatoday.in/news-analysis/story/it-is-not-recession-economy-is-growing-but-at-slower-pace-question-is-why-1594928-2019-09-03)

Overlooking all these scenario I do believe that they should have gone for the Crypto currency acceptance and make the digitalisation more or less stronger than what they would have done earlier. (Demonetisation etc.?? )

I mean crypto could have at least made the influx of money by different platforms of trading, gambling, exchange of products and services etc. The whole process would ave benefited them with the Tax and thus government could've gotten the benefits for the same.

What are the thoughts ?

When people face challenges, there are always several alternatives to go with in other to come out on top of the situation. The same thing happens in the case of countries when faced with series of economic challenges just like this. For crypto enthusiasts, we need to have an understanding that crypto currency is not the only solution to every economic problem and not the most potent solution to economic challenge. Every country have its team or experts who understands her economic needs and landscape and are in the best place to give recommendations on the best way to go about it.

[oaz7t]

India's current economic situation is no way similar compared to Malta, Gibraltar, or Bermuda to see that the crypto industry have an immediate effect in their economy. For one they are a nation of more than a billion people one industry that cannot even touch a third of those citizens won't have an immediate affect in the economy. Remember that bigger countries are risking a lot more when they are rushing their regulation when it comes to the crypto industry because they have more to lose rather than gain.

I believe you talking in a sense where India is comprises of huge population where illiteracy rate is more over literates so as to have lesser use of crypto currency or even opportunities that are being developed by Indian government ?

Regulation is part where government is actually making all the people aware of what they can live with and help grow the economy. But again bigger population, less control I guess !!

[oaz7t]

I wouldn't rate a 5% growth as too slow, especially if the inflation is much lower than that level. During the UPA2 regime, the inflation had breached 14% level and the GDP growth was around 6%. But in the long term, the picture is not very rosy. NDA was regarded as a fiscally conservative alliance, but in the mad rush for votes they abandoned most of those principles and took a more populist approach.

The basic issue with India is the uncontrolled growth of the population. It is not easy to give jobs and education to 1.5 billion people, especially when the population continues to grow at a rapid pace. And since India is a democratic country, the groups with larger population will be having an increasingly powerful hold on the government. As a result, the government will be forced to dish out more and more populist schemes, thereby ruining the economy.

Looking at this thread, I believe everything is related to population, literacy rate, regulation of India which is not under substantial control.

When you see India through metro cities, and developed states then there is huge amount of money flushing in. The IT, Pharma and other mechanical industries are growing at alarming rate but again most of the population dont live in the cities and are engaged in farming , horticulture etc which kind of low profile job with bad income level.

So, crypto stands less chance to help India, that's what I can conclude from this thread.

[jostorres]

First step would have been for them to even accept the use of blockchain technology for most of their operations and apply it, then we can talk of cryptocurrency, but rather than embracing what will help them generate more money, their lack of understanding about cryptocurrency is pushing they away from one of their economy savior.

From the release of ICO projects, do you know how such money would have even entered the country where those projects reside? India would have come up with lots of projects that are genuine and use Blockchain technology to fund it and then start taking the produce out of this country. Let’s see how the court case goes and see if there is someone who is well briefed about crypto to explain this whole thing to them.

[adamlillian]

India's GDP grew slowly last year due to a partial collapse of the crypto market in 2018.
You see, the crypto market is full of Indians participating and investing. There are plenty of Indian businesses operating in the crypto market and most businesses are not at a major turning point.
That is why they are affected and make GDP the lowest. But believe me, if from now on Indian people invest in bitcoin and hold it in the long term. I am sure they will thrive again.

[el kaka22]

When a country like Inda is in question I would say they should continue the way they are doing, they are not in great shape when you look at their economy but they are not doing as bad as Venezuela or Zimbabwe, its just a bad economy which exists in many countries right now. That is why you should pick your fights first and go with the worst one, which one is the worst right now?

I would say Venezuela have been horrible for longer so maybe we should focus on getting crypto to help them out and see how well it does there first, if it works than we will move to Zimbabwe and than to another and another continue until all countries are full crypto but that doesn't mean we should do it all at once, we should first start with worst to see if it works to begin with.

[stompix]

India's GDP grew slowly last year due to a partial collapse of the crypto market in 2018.
You see, the crypto market is full of Indians participating and investing. There are plenty of Indian businesses operating in the crypto market and most businesses are not at a major turning point.

Muahhahahahha, please tell me you don't actually believe that!
What business? 10 BTC a day exchanges that fled the country, a couple of ATMs that were seized in a week? 22 nodes in the country with 1.5 billion people while Bulgaria has 51?
What impact can crypto have in India other than 0.0001?

Some real education and real garbage management and healthcare system would do wonders compared to what crypto can do.

I believe you talking in a sense where India is comprises of huge population where illiteracy rate is more over literates so as to have lesser use of crypto currency or even opportunities that are being developed by Indian government ?

Not only that but think about the size.

The entire value of all the bitcoins is around 190 billion, even if Indians buy all the bitcoins in the world at the current and then by some miracle, it goes to 20k$ and by another miracle they manage to cash it out with crashing the price, it would still fall below 150$ per citizen.
But for Malta, the same move would mean half a million for every resident

The larger the country the less impact would some crypto make on the economy, you have to realize that the anual, remember anual, like each year military budget of the US alone, is worth nearly 4 times the value of all the bitcoins in the world.

Adopting cryptos will definitely open up many major avenues for the youths to make money. New business opportunities will come up and create jobs. Millions of people will start making money from different activities related to cryptos. Even though the overall volume is currently very negligible, but with right kind of policy and promotion, it can make a serious positive impact on the economy by allowing additional cash flow. But Indian politicians are orthodox by nature and everything new is seen as a threat rather than an opportunity!

I'm really curious about those jobs that would offer a paycheck to millions of people.
Especially since in the whole damn world there are at most 2,881,566 people with more than 1000$ worth of bitcoin.
Oh and I'm a fan of the phrase, "Not your keys, not your coins".

[TheCoinGrabber]

I wouldn't say it'll provide a big benefit, especially in an already larger than most economy but it does provide more options. Bitcoin is simply money and most things that can be done with it can be done with fiat, though there maybe differences in fees.

The thing is, it appears that the Indian government treats it as a scam. I don't know what led them into this conclusion. Maybe Bitcoin's heavy connection with China? Maybe they are wary of the possible problems once China completely shuts down mining operations?

[vintages]

Economic growth might be possible of India consider cryptocurrency.
However, the concerning point is, will the government accept it into the country system?
It is one thing for the citizens to use and hold Bitcoin but it is another thing for legalisation of this digital currency to take place.
I feel it will impact in the economy more if the government takes interest in it.

[bryant.coleman]

Looking at this thread, I believe everything is related to population, literacy rate, regulation of India which is not under substantial control.

When you see India through metro cities, and developed states then there is huge amount of money flushing in. The IT, Pharma and other mechanical industries are growing at alarming rate but again most of the population dont live in the cities and are engaged in farming , horticulture etc which kind of low profile job with bad income level.

So, crypto stands less chance to help India, that's what I can conclude from this thread.

It is one topic that no one in India wants to talk about. Back in 1977, there was a very controversial family planning program, which triggered a very negative response from the population. Now none of the politicians have the courage to talk about population control. All of them know that unless they control the population the economy will not grow. But they are afraid of losing votes.

I can give you some stats regarding this. Only around 3% of the Indians pay any income tax. Most of the merchants don't pay any taxes, and agricultural income is 100% tax free without any threshold. You can find the so called "farmers" driving around in their Audis and BMWs, without paying a single penny in income tax. And this is one of the reasons why more than half of the population don't want to do any jobs other than "agriculture".

Indian economy will grow only if the government stops the freebies and everyone pays their tax honestly.