Great step by the government towards a total ban of virtual private currencies

The bill being introduced by the government for banning cryptocurrency is a welcome decision. This should be implemented with no exceptions. Many vested interests will oppose it. Cryptocurrency values are simply based on demand and supply. They have no intrinsic value whatsoever regardless of what the so-called crypto experts may claim. The price will rise as long as more people pour money. It is in effect a Ponzi scheme on a grand scale. A few may gain but most will lose sooner or later. All false advertising and bogus posts in social media claiming that this or that celebrity has invested in such currencies are only meant to lure the gullible and greedy and keep up buying pressure. The main aspect of concern is that this represents a massive capital outgo from India to other countries when all the time we are crying for foreign capital inflow.

There are many false narratives that we should not be left behind in the technology revolution etc. all meant to put the government on the defensive. This is totally untrue. Cryptocurrencies are not the only use of blockchain technology. Government and private organisations can use this technology wherever there is a case for decentralised record keeping. The problems of losing one's crypto wallet by hacking, hardware failures and accidental erasures are just being glossed over. Only rosy pictures of multi-fold returns are being projected without mentioning the risks. People who say that cryptocurrency should not be banned but only regulated will be the first to break the regulations through loopholes if such regulations are brought. That is why a total ban is necessary.

Another common claim is that even countries have recognised Bitcoin as valid currency. The only country which did that is El Salvador a couple of months back. I do not know how many of those who talk about this even can point the country on the world map. I had to search for it. Some interesting facts.

This Central American country has a population which is much lower than most of our metros.

The country has NO CURRENCY OF ITS OWN. The currency which they had earlier is now defunct. So the country uses the currency of the neighboring USA as its own.

Can you imagine India doing that? more  

View all 7 comments Below 7 comments
Saved from financial chaos and plundering and high risk of griddy 'investors' more  
I know nothing about bitcoin. I think it is another terminology for cryptocurrency. When I don't fully understand any financial instrument, I stay away from it. more  
@Mr Suri. There are always people who are compulsive gamblers. But our stock markets and now the cryptocurrency are taking gambling mainstream. That is a lot more worrisome. If the younger generation starts feeling that they can make something out of nothing, will they ever be inclined to pursue careers that add real value to the society, and not chase the pot of gold at the end of rainbows? more  
Well narrated facts Mr Govind more  
The harm Cryptocurrencies trading can cause overall in the society is much much more than what it can bring as revenues through capital gains, gst etc. This is bound to addict youngsters and it can cause major social damage. It fuels greed for quick money making. It makes people continuously spend hours and hours of being online and making trades imagining they are poised to make something big. More harmful than drugs. more  
There are always people who are compulsive gamblers. But our stock markets and now the cryptocurrency are taking gambling mainstream. That is a lot more worrisome. If the younger generation starts feeling that they can get something for nothing, will they ever be inclined to pursue careers that add real value to the society, and not chase the pot of gold at the end of rainbows? more  
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