Put, cryptocurrency is a digital form of money that the government of any nation does not regulate. There is no central authority regulating the prices of bitcoin, and you might find it incredible. But, it works both ways. It is positive as well as harmful for the people who are investing money in it. Due to the fluctuations and the volatility, people get opportunities to make money, but they also face a lot of uncertainty. The uncertainty of the market makes them lose money which is not at all a good thing for the investors.
However, if you look at the broader picture, cryptocurrencies have brought about a lot of revolutions worldwide. So, most people find it to be a positive aspect that cryptocurrencies are volatile and spreading and taking over the traditional medium of finance and investments. However, in order to experience hassle-free trading and its positive effect, sign up at the crypto trader website.
However, there are a few nations that are partially enthusiastic about cryptocurrencies. For example, you can see the Indian subcontinent. In India, a large population uses a diversified range of cryptocurrencies to make money. But, the government is not entirely enthusiastic. It partially supports the concept of cryptocurrencies by providing people with some taxes and regulations on crypto coins. If you are making money using cryptocurrencies, you will have to pay a tax of 30% of your income. This is a large share of income; therefore, not everyone is ready to compromise it. You should be very well aware that living in a country like India comes with many challenges, and if you are trading in cryptocurrencies, you will face even more of them.
Support for government
One very beneficial aspect that everyone has to consider for cryptocurrencies in India is that it provides a lot of support to the government. Yes, no matter if you understand this aspect, every top-level authority in India is talking about crypto coin and their placement. They believe that cryptocurrencies will shape the future of finance, but they have to be a little regulated for that. If the volatility and unregulated ecosystem of bitcoin are maintained, it will not be accepted at any time in India. However, if the creators of bitcoin allow the country to modify the rules and regulations, perhaps it can look forward to accepting bitcoin legally. El Salvador has done it without any conditions, and it is expecting positive growth in the economy. But, India is not like El Salvador; therefore, some important aspects have to be looked after.
Supporting the ecosystem of cryptocurrency is not a new thing for India. Mostly, cryptocurrency support in India is coming only because of Blockchain technology. The government believes that cryptocurrencies can provide an incredible medium for making transactions for the government. The authorities of the Indian government believe that cryptocurrencies are an incredible medium of investment, even for the people and the government. Moreover, if bitcoin is accepted illegally, it will be easier for people to get a broader scope of finance.
Moreover, it will be easy to regulate and control their financial stability better. But, other nations do not find this to be very amusing. They believe that if India starts accepting cryptocurrencies like bitcoin, it will have a crush on its economy, which is not a good thing.
What are the challenges?
India is a developing country, and it can quickly adopt any technological advancement that will come in the future. However, while talking about cryptocurrencies, there are some serious challenges that the nation has been facing. If India wants to adopt the ecosystem of bitcoin or any other digital token, it is going to face the below-given challenges –
- First of all, the unregulated nature of cryptocurrencies provides no control in the hands of the government, which can prove to be fatal for financial stability. People can exploit the cryptocurrency medium to make transactions for illicit activities.
- The clarity of the classification of cryptocurrencies can also become a severe hindrance. If the government accepts cryptocurrencies, they will have to decide where to put the crypto coins as a taxable income.
- The country will also face problems making people accept this new finance system. Even though the majority of the population is already using it, a few are there who support the traditional system. Therefore, the government can face backlash from the general public.
These are the essential aspects and drawbacks of accepting cryptocurrencies in the Indian subcontinent. Maybe, the government will do the right thing by accepting bitcoin, but if things turn out to be wrong, the consequences can be fatal.