It is just a matter of perspective and knowledge whether you will take a seat for Bitcoin or not. The Bitcoin exchange industry gets barred due to its high volatility and risk factors. Yet, it is a controversial subject and topic of interest, as Bitcoin is a pseudo-legal currency in many parts of the world. Therefore, banning Bitcoin using such irrelevant aspects is not possible. On the other side, there are some potential impacts of banning Bitcoin.
In this blog, we are going to trail the headings that will make you understand the effects of the Bitcoin ban in India.
How do Bitcoins Generate?
To generate a Bitcoin, a person needs to go through a competitive and decentralised process called Bitcoin Mining, and the person who mines the Bitcoin is called a Bitcoin miner. The entire process of mining is to ensure that the transaction that occurred in the past is complete. With this process, new coins get added to the system.
Whether you are mining a Bitcoin in India or across the border, the process of mining Bitcoin is the same. In general, Bitcoin is a set of information represented as a block, and that blog consists of a database called a ledger. When a miner solves the mathematical equation with the help of powerful computers, they get rewards in the form of Bitcoin. And this is how Bitcoins get generated.
How do I start Investing in Bitcoin?
Well, every cryptocurrency enthusiast is willing to know the best practice of how to buy Bitcoin from any part of the world. To our understanding, we recommend you invest in Bitcoins from the cryptocurrency exchange in India if you are an Indian. Else you can look for some trustworthy cryptocurrency exchange working for five years in the industry.
Now, as you know much about the Bitcoin exchange industry, it's time to leave no stone unturned and know the facts behind the ban of Bitcoins globally.
Can Bitcoin Get Banned?
Yes, Bitcoin can get banned. Though, if you are super excited to invest in Bitcoin in 2021, there are enough possible changes that all the aces from the deck are in the hands of the government. Banning Bitcoin in countries such as the India, USA, UK, and China, traders are investing in Bitcoin. It may slow down the economic growth of that country. There are other factors, i.e., building the bar over the head of the officials before deciding against it.
Why are Governments Banning Cryptocurrency?
The main idea behind developing such a medium of exchange is to have an independent currency free from the regulations of government authorities and banks. It is still to rationalise whether investing in Bitcoin needs to get banned or not. The government isn't against accepting the new medium of exchange, but some implications still need to be rediscovered or altered for the betterment of mass adoption. Some of the officials are quoting it as a blessing in disguise due to its high volatile nature.
Some countries are trying to go beyond the curves and had officially banned Bitcoin. The countries that did so are China, Russia, and Vietnam. But another promising statement is that some countries like Singapore and El Salvador have designed momentary regulations for buying Bitcoins.
Now, let's get familiar with the consequences that may occur if Bitcoin gets banned?
What Happens If Bitcoin is banned? The Consequences
Banning Bitcoin in India may lead to undiscovered consequences that may affect millions of people around the globe.
Here are a few consequences that we proficiently see to occur if Bitcoin gets banned. These are:
- Illegal Trade: Simply banning Bitcoin will not stop people from sitting back and finding other investment options. A regulatory ban will encourage the masses to transfer their investment from one wallet to another.
- Impact on Cryptocurrency Exchange Industry: Blockchain technology is among the fastest-growing industries we are witnessing. With its disruptive innovation and contribution to the financial and service sectors. Now, we are resting one side of the hustle by depending on the blockchain. Some of the products that a blockchain can develop are Blockchain mobile app and web design and Services used for crypto exchange, such as wallets.
- Additional Responsibilities Over the Government: Enforcing laws to withdraw cryptocurrency will increase an unease for the government. People are emphasising Black Marketing Trading in the countries in which it is banned. People will start to avoid paying taxes, and the reason for stress will be the Bitcoin exchange industry.
- Employment Loss: With the emerging new medium of exchange, there are possible a contribution of possibilities for jobs that have had opened in the market. Banning investment in Bitcoin will lead to unemployment for millions of people globally.
- Diminishing the Ray of Hope: Eversince we are living on the verge of disruptive innovations. Cutting the branches that are empowering people to set their deliveries and have access to the newest possible way to achieve higher security will lead to inefficacy. This new reform for the new medium of exchange will drive the country in the future.
The concept of Bitcoin has an everlasting economic impact. But we as responsible citizens of the country must understand that each country has their perspective about the newly developed in tend medium of exchange. Banning Bitcoin in India or any part of the globe will not only bar its future enormities' but will give a diverse space for the development of the country. The government should develop a long-term solution over the new investment methods valid in all aspects until now.
