India Vows To Eliminate Use of Cryptocurrencies in the Country (hindustantimes.com) 68
India will move to stamp out use of cryptocurrencies, which it considers illegal, country's Finance Minister Arun Jaitley said on Thursday, launching a no-holds-barred attack on virtual currencies such as Bitcoin. From a report: Governments around the world are grappling with how to regulate cryptocurrency trading, and policymakers are expected to discuss the matter at a G20 summit in Argentina in March. "The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system," Jaitley told parliament in his annual budget speech. However, the minister said, the government would explore use of block chain technology proactively to speed the move toward a digital economy. Jaitley's announcement could trigger "panic selling" in cryptocurrencies in India, said Amit Maheshwari, partner at tax consultants Ashok Maheshwary & Associates LLP.
Re:Not actually currencies (Score:4, Interesting)
Depends which ones. Bitcoin is certainly not a currency: it's closer to a commodity (intrinsic value isn't a qualifier, just that it's a limited supply thing people want.) Ethereum is closer to a currency with its built in inflation rate over indefinite time. Curecoin is more of a point system for a charitable purpose to get people to donate computing cycles toward research. Some cryptocurrencies are more like securities in that they are direct translations to stocks in corporations or specific projects (in some cases the cryptocurrency even takes the place of stock altogether.) Most all the other alt-coins are just pyramid schemes, etc. Then you have things like Tether which exist just to facilitate USD transactions over different platforms (assuming the project leaders didn't just use the money, which I tend to doubt they did because a couple billion is more valuable generating interest, especially if it means they can just issue Tethers [or whatever they call their coin] to spend themselves and just keep the cash reinvested.) Then you have banks attempting to use blockchains to mitigate issues with interbank trading. The term cryptocurrency is a misnomer just because it is used generally to describe "blockchain implementations other than corporate ledgers" for the most part (the security versions could definitely qualify as a part of a corporate ledger, but there's already a pretty significant distinction between an inventory ledger and a stock ledger.)
Honestly, blockchain is just a technology and sadly with Bitcoin getting all the attention all cryptocurrencies are considered scams, because that is inherently what a useless commodity with rapid planned deflation after rapid planned inflation is.) The technology as a whole has a lot of potential for just about any ledger system, but 99% of those implementations are going to end up getting called "cryptocurrencies" just because of the limited vocabularies possessed by the average person. It's important to keep in mind the purpose and the algorithms driving a specific implementation when declaring it a "scam" or "gambling instrument" because while many are not all are (and certainly none of the blockchains with long term potential are.)
Comment removed (Score:3)
Re:Obsnark (Score:4, Informative)
You didn't hear? Bitcoin isn't considered to be a "cryptocurrency" anymore. Now it's considered to be a "store of value", like Gold or Silver.
That might have had something to do with the fact that it now sucks to use as a currency, now that the transaction fees are insanely high and it takes forever to confirm a purchase. Even the criminal underworld has given up on it, and uses different cryptocurrency for things like drug buys and money laundering.
Re: (Score:2)
The pool of unconfirmed transactions is quite low and fees are lower because of that.
Re: (Score:3, Interesting)
Fees are pretty low right now, and tests with Lightning Network are looking pretty good too. LN allows for near instantaneous payments for almost zero fee.
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Near instantaneous for almost zero fee, congratulations you've described everything everyone already uses.
The world is bigger than your wallet and Starbucks. Ever used paypal, for instance ? Ever lived in a country with massive inflation ? Ever traded internationally ?
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Ever used paypal, for instance ?
Yeah it has none of the downsides.
Ever lived in a country with massive inflation ?
Yep I call it bitcoin world. Shit it's halved in value in just the last 2 weeks. But seriously bitcoin isn't the answer here. The answer is already obvious, those countries just switch to using a different currency for day to day.
Ever traded internationally ?
Yes all the time. The interesting thing there is that no one cares how fast the transfer happens as long as the price is fixed at the destination. If you're using bitcoin for international transfers then you belong locked in a room with the pillows
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Many would argue a ~2% CC card fee is near 0 too. The entire point of Btc was to eliminate middle men. Turns out the only way to make Btc workable is a middle man. I cal that FAILURE!
This summary is inaccurate, massively so (Score:5, Informative)
They dont consider it legal tender, but are not looking to emeleate its use, just stamp out illegal use like other countries.
https://yourstory.com/2018/02/... [yourstory.com]
Re: This summary is inaccurate, massively so (Score:1)
Good luck with that.... The whole reason digital currencies were invented was to create something the government can't control.
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Not control does not mean illegal.
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Prediction (Score:1)
I see... an Bitcoin article. Prediction of comments:
Mumble mumble BUBBLE roobarb roobarb TULIPS roobarb mumble CRASH
Time to short the thing... (Score:2)
Folks, time to short BitCoin. Please short this thing to make $$.
India also vows... (Score:4, Interesting)
to end porn...drug use...and well uhm. Stuff.
Good thing they had picked a worthy pursuit we can all get behind! Seems ending poverty is nothing anyone (with money) cares about.
Bitcoin settlements can be delivered by carrier pigeon, more code or encoded in text/email. -Stopping bitcoin is harder than stopping porn.
I refer to The Simpsons -> http://i0.kym-cdn.com/photos/i... [kym-cdn.com] (Old man yells at Cloud)
Before anyone can stop bitcoin they'll need to at first understand what bitcoin is. Considering some of these entrenched knee-jerk politicians are still coming to grips with DNS & VPN I'd worry in about 20 years...
BTW, BTC will likely touch sub $3k - good time to buy. -You're welcome!
Re:India also vows... (Score:4, Insightful)
Yup.
Reminds me of a quote:
"The more you tighten your grip, Tarkin, the more star systems will slip through your fingers."
Re: (Score:2)
I have a better idea.
Eliminate spam.
Spam has a full IP log that anyone with access to ISP logs and armed thugs will be able to follow back to your grandma because of the router you got her a couple years ago
FTFY
problem solved (Score:4, Funny)
The USA made it illegal to own gold (Score:5, Insightful)
Re: (Score:2)
from 1933 to 1975, when they got the US off the gold standard and onto fiat currency. Whether cryptocurrencies are viable long-term, I couldn't tell you, but governments HATE not having a monopoly on stores of value.
Actually, it was used to increase the money supply as the government bought US. gold and increased the price about 75% resulting in foreign holdersof gold selling it to the US. This increase in gold holdings resulted in an increase in the money supply, inflation and an increse in output. It was not illegal to own good as jewlery and collector coins was still ok. The old habit of buying gold chains as a way to hold gold was still possible.
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from 1933 to 1975, when they got the US off the gold standard and onto fiat currency. Whether cryptocurrencies are viable long-term, I couldn't tell you, but governments HATE not having a monopoly on stores of value.
The old habit of buying gold chains as a way to hold gold was still possible.
Not only possible, but stylish [wikipedia.org]
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Not only possible, but stylish [wikipedia.org]
I pity the fool who doesn't own gold...
Re: (Score:1)
And in India, which this article is about, it was illegal to own gold from 1963 to 1990. There were some exception for jewelry of up to 14 karat.
Even more closer to the topic of the article, since 2016 Indian politicians have been making statements about making it illegal to own too much gold again. At various times, the introduction of upper limits of 250, 500 or 1000g per person were announced.
Philipp
Just like smoking and drug use (Score:2)
Good luck with that.
Only Information is of value. (Score:1)
it's not being banned. Read. (Score:1)
Capital Flight and Undermining Redenomination (Score:3)
I see two things motivating the government: capital flight and undermining redenomination. Regarding capital flight: particularly in developing countries, governments take great steps to restrict the amount of money people take out of the country. The idea is that if you can keep money in country, it'll go to growing the local economy versus investments overseas. Traditionally, these controls have been imposed through government bank regulations. Bitcoin and other "cryptocurrencies" give people an alternative medium to move money and bypass government controls which I'm sure is bothering the Modi government.
The other thing to remember is that India just went through redenomination, where they effectively removed a large number of bills out of circulation (about 80% of all cash value). This was done to shrink the shadow economy, basically the cash-driven underground economy, so that the government can better monitor (and tax) sales, income, etc. It also pushes more money into more traceable electronic transactions, making it harder for corruption payments and criminal funds transfers. Cryptocurrencies however provide another means to move value that the Indian government doesn't have the ability to track (yet), thus the initial reaction to shut it down.
Why this is idiotic (Score:2)
But nothing about sanitation (Score:1)