Young Indians believe in the 'new money' and find new ways to use cryptocurrencies, which they consider a new gold.
"The value of cryptocurrencies is solely due to speculation, and the value of rupees is guaranteed by the state that can intervene in the event of a crisis" - stated Soumik De from the HDFC bank in Calcutta. This is a gamble, not an investment - he pointed out.
Exactly for this reason, Indians have invested in gold for centuries, and now in cryptocurrencies. They do not trust the Indian authorities and their guarantees.
"The authorities are targeting people trading in cryptocurrencies, " said Anand Sharma, consultant to one of the largest consulting companies in New York. First, the tax officials began to pursue people active on the cryptocurrency markets, and now the banks are blocking transactions.
Despite the restrictions imposed by the banks and authorities, Indians are already finding new uses for cryptocurrencies. New companies, raise funds for development this way. 200 million USD has been raised in India in 2017 and 3.7 billion in the world. Economic immigrants send money home this way. All you have to do is buy a cryptocurrency for dollars and sell it immediately, getting rupees. Without a bank and their commission - explains Sandeep Singh.
Unstoppable
The authorities will not stop the technology that is so friendly to people. Indians will simply move to the underground, beyond the jurisdiction of the Indian authorities.
I think it would be a good if people don't completely dumb their gold. Gold and Bitcoin are very different investments and together they create a great deal of diversity. Gold will never be worthless unless somebody figures out how to turn lead into gold.
I guess diversification is the key here. Gold is difficult to transfer, expensive to store securely and not that easy to cash out, while crypto is easy and cheap to transfer (from country to country), cheap to store securely with a bit of knowledge and ability to cashing out is increasing month by month with increasing liquidity. I'd also question the gold's value based on it's physical properties and real life usage. We've so much gold in the world just sitting there in vaults, probably enough for next 1000 years if not more. We will probably be sourcing gold from other planets or asteroids before it dries out. Anyway, thanks for the interesting reply! You'll get my upvote whenever I restore my VP :)
The US at least, may not have as much gold in their vaults as they claim. Also it's not like one has to carry 50 pounds of gold around... 2 lbs is a small fortune, and gold has always increased in value over time when calculated over even a moderate interval.
Maybe, but where do you keep this gold if you live in country like India? Keep in in bank's vault and risk nationalization, or bury it in the backyard hoping nobody's going to find it? Indian emigrants working abroad in US or Europe can easily transfer the money to their families, would they send a gold instead? I looked into buying some physical gold once, it's not that easy and it's costly. Spreads bid/ask are huge, storage expensive, then gold bars are marked by whichever mint it came from, you won't get a good repurchase price on bars manufactured by other mins and you'll pay extra premium for buying small quantities (small bars are more expensive per gram). The alternative to buying physical gold would be buying gold contracts, but then all the features and reasons why people buy gold go away.
Nice post
Thank you.
If you found this article informative.
I also really enjoyed your previous post. Very good TA.
It seem that you're quite new on steemit. So am I. Good luck here. Upvoted and followed.
Thanks @crypto.piotr! I just followed you back :)
Thanks. Hope you will like my future content :)
I was wondering what could be your view on upcoming G20 summit in Argentina (19-20 march).
I believe that prices will be dropping down until this summit will end. I cant imagine any larger buying power stepping in just now.
My view is that there will be a distraction, G20 today, something else tomorrow. My view is also that the technology and progress is unstoppable and blockchain is here to stay. This doesn't mean the 1000's of current blockchains will survive. In fact I believe only very few of current cryptos will mean something in the future. There used to be many internet protocols developed at the beginning of the networking- TCP/IP wiped them off. There used to be many mobile phone operating systems, basically each manufacturer had it's own. What we do have now? ios, android, windows (ending life), blackberry (ending life) and there's probably few more. Internet search engines - same story.
I agree.
After all as an investor Im trying to figure out which industries can benefit long term in cryptospace and then Im trying to find out which cryptos could be potentially become a leader. I like to think that this is reasonable long term investment strategy.
Yeah, there's always a balance. Earlier you spot the opportunity the higher the potential gain, but also the risk of failure. Cardano and EOS are probably the most sophisticated at this time and I have good feelings about both of them, but the adaptation is not there yet so everything can change. EOS will hit the mainstreem market well before Cardano, so this gives them big advantage. Ethereum has large adaptation, but their technology lacks behind, I'm not sure if they can upgrade to match the growing competition in terms of technology. Steem has nowhere near the potential of EOS, but the adaptation is good and growing so I'm quite optimistic about it, at least in the short to medium term.
I was wondering what do you think about NEO? I invested lately in DBC (deepbrain chain) as I very much believe that AI martket will grow very fast in upcoming year. And DBC is backed up by NEO. I would love to know whats your view.
ps.
When EOS will hit the mainstreem market? Im not very familiar with that crypto.
Cheers,