What happens if India “Approves” Crypto

Crypto currencies are nowadays the talk of the globe, when BTC hits All Time High (ATH) of 64,000 USD on April’2021.

However, most of the people in India were not aware of these news because Crypto is not a bread/butter for Indians.

The society has still not seen any exchanges on these crypto currencies.

There are 2 monetary bodies has to decide the Crypto entrance to India. Basically
1. RBI (Central Bank) has straight away declined the request to not do any transactions based on Crypto. And it has also instructed all the banks in India not to encourage any Crypto transactions with INR. (Till now they have categorized crypto transactions under terrorists financing, but any day they will change their stand.) However
2. The Parliament of India is still mum in its approval. They know all Crypto things happening across globe, but still haven’t made a stand to make Crypto illegal in India. Since Government is still in dilemma and not categorized it yet, the miners in India take this as granted and considers Crypto is legal to mine.

Awareness with Indians:

There are very few miners in India, and they do mining with few ASIC’s or GPU’s at home. Since this knowledge is not known to wide common public, it is still now restricted to few miners. If Government starts the news about Crypto, the awareness will start spreading across India.

What happens after awareness:

If people start receiving the news on Crypto, they try to understand, how to mine this from their home environment. Then the rush to GPU/ASIC purchase happens, which will create a huge blow in semi-conductor industry across world.
At any cost, even double to its current rate (/ Black market), they will start purchasing the GPU’s. The typical Indian mentality, of applying loan or swiping credit cards, somehow they will make these GPU purchases.

Money Planted on Tree:

Once they understand, the Crypto currencies can be manufactured at home environment, and the conversion to USD or any currencies is feasible, and bring the money back to home, that’s it, people will be exited.
With the subsidised domestic electric current they are receiving at home, they will tend to setup Infrastructure to somehow mine the Crypto currencies at home. The butterfly effect will continue from here.

People, who earn for daily wages/ Salaried / Business folks, will start generating income at home using mining techniques. Few people might first think of not going work and few will anyway resign from their daily activities.

Crypto currencies can be seen everywhere across, like logos in their T-shirts, Cars, Bikes, etc.

Currency Exchange rates:

Since the Indian currently is trading at 73 for 1 USD, the exchange rates will be jaw dropping for Indian folks.
The meagre amount they receive using these mining will be sufficient for them to self sustain.

Fluctuations in Daily rates && Protests

Since the Bitcoin is a globally decentralized currency, the fluctuation of its rate is un-controlled.
Government or RBI will have no role to control the Crypto rates.
People are not seasoned for this type of events, if the crypto market crashes for another 40%, the people don’t have any cover for this. Automatically, they will start approaching the Government for support.
If not the outburst protests, by angry people is eventually predictable.

People Psychology

Now that few people could have resigned from their regular Income jobs and enjoyed the free money plantation at home. They will be reluctant to move back to older life style, and any situation is possible with these loose hearted people.

Thanks,

Yuvaraj