Topic: Crypto in Indian Economy? - page 3. (Read 459 times)

I think you are right about their political party. Corrupt leaders only care about money and this is validated by seeing this news yesterday. They are implementing a 30% tax on all digital assets which means crypto. But you know what the funny part is they are charging not only for gains but if you gift someone with digital currencies you have to pay that 30% tax. But they haven't legalized crypto in their country yet but implementing the tax in it! I am not sure what I should call it funny or discouraging for the crypto user!

Of course, the number of 100 million makes no sense no matter how someone sets up that story. All this is the product of someone who wants to create FOMO in that country by persistently placing one and the same lie - and how many times have we just read this information on the forum? It is a bit hard for me to believe that people who do not have basic living conditions (electricity/toilet) and also according to data from 2021 more than 20% of them are completely illiterate can be leaders in the number of crypto users.

Also (if something hasn't changed) there are no political parties in India that support Bitcoin.


It should be noted that this is a post from 2019, but also that the user is from India, and he claims that at that time there were at most about 1 million crypto users - a 100% increase in 2 years makes no sense.

Funny part. The country is not really technologically poor when we compare it to other similar developing countries. The GDP is increasing at an incredible speed and especially during the COVID-19. The economy is definately improving. One should understand the fact that introducing bitcoins and other cryptocurrencies in a country with a lot of corruption might help people cope up with it. Also it would help them to make sane decisions, but unfortunately the government just imposed a 30% tax on crypto which is definitely a probelm for sure. But at the end of the day we should remember that a country like India with tech hubs present all around, plus with cities like Delhi and Banglore, there is honestly not even a need of introduction about bitcoins. People are always looking for ways to get around.

Yes with -7.3% growth India has done very well in 2020!    You know what the problem with GDP is? If govt constructs a road poorly and then it's damaged after a few months and govt again spent money to fix that road, the GDP rate will be higher. If govt spent money in the unprofitable sector like building the world's tallest statue by spending millions of dollars it may be beneficial for GDP but won't be beneficial for the people. Because the more spending happens in that country the higher the GDP will and it doesn't matter what that money spend for. GDP doesn't show the country's economical growth.

One CMIE household survey shows that 97% of Indian peoples wages go down in comparison to the previous year and 75 million Indians go down to poverty. I am talking about those people who become poor recently.

 

World Population: 7.9 billion

India's population: 1.38 billion
India's half population: 0.69 billion

Well, even those 24% having smartphone will by pass the total # of smartphone users in the USA alone. Plus I am really doutbful if only 24% of them have smartphone.

Even if we ignore the numbers of smartphone user, then also individuals holding the crypto multiplied by # of assets will always by pass the economic strength in the crypto.

Its not about poverty or richness. Its all about "BULK" size of population in India that is making it number one holder of the crypto currencies.

---

I barely doubt India is poor country. India's 2020 GDP passed the developed country like Canada and United Kingdom.

The economic growth is enormous considering the set up of giant medical supply chain, tech advancement and Information tech sectors growing at alarming rates.
In fact, India GDP 2022 is predicted to grow from 6.6% to 8.5%+.

Having poor people in the country and being the poor country are completely different sides of coins.

Reminds me of this article from BBC
India census: Half of homes have phones but no toilets

Total numbesr when you don't consider the percentage of the population owning or the total size means nothing.
India has 40 times more paved roads than Belgium does it mean the infrastructure is better there?

Reverse those numbers, it means 1 billion Indians don't have a smartphone while only 60 million Americans don't own one. See the difference?


So you mean Indians would have launched their own company to rival Microsoft in 1975 ?
Is this another chapter in that history book where you've defeated Alexander the Great and where England was a colony of India?

Anyhow, back to the crypto percentage.

Numbers show 100 million, so if we say that the majority would be concentrated in urban areas, then there must be at least 10% of the population in Mumbai, so at least 2.5 million poeple own crypto there, in just a city! Can somebody show some real proof of that number? I mean, if a city of 500k total population in Europe has 10-50 businesses accepting crypto that would bring the number to thousands in Mumbai, right?
You would have almost the same number of users as the number of votes Gandhi got in 2019 yet nobody takes a push for legalization, not with such a huge voting power behind it.

So, there must be something wrong with those numbers.

You judge a country's economical situation by measuring the average situation of the total population of that country. As you have said every country has poverty and the even USA has poor people who live in the street so now you will say the USA is a poor country? That doesn't make any sense. 22% of Indians live in poverty according to Wikipedia.




Compare that with India's total population. 94% of senior people in India don't have a phone. There is no doubt that India is one of the great smartphone consumer countries but still, a big chunk of the countries population doesn't have any access to the internet. That's number is improving that's good news.

I would not use the term "business" here as the bigger number. It is more enthusiastic traders. I have recently people among my friend circle ask me about crypto advice, what coins to buy and all and the number has increased in last few years. Entrepreneurship is not what is attractive here, but making money from speculative markets is, however I could be looking at a skewed version of the data, while the ones who are watching on internet might be looking more at the startups coming from India and not their locals mindset.

The economically poor people will never become economically rich, point being a lack of aggressive development and the usual mental inertia among people. Your average Uber driver here still does not accept online UPI payments but takes cash and even writes that down on a piece of paper so as to know how to much to withdraw from the bank before reaching home. A lot of problems are there, but a certain population of the youth is who are getting into crypto, again they are more interested in shitcoins than bitcoin, unlike me.

Yes, it is. All value added to an economy while exported product has been deducted. I remembered it has a formula and I checked it online:

GDP = private consumption + gross private investment + government investment + government spending + (exports – imports)

GDP by norminal and purchasing power parity (PPP) are the two that are commonly used

Norminal is normally used often but it has been a matter of debate of which one that will give most accurate result.

List of countries by GDP (nominal)
India is the fifth

List of countries by GDP (PPP)
India is the third

If using the purchasing power parity, It can give the result above with the methodology used by Chainanalysis, but if norminal is used and no comparison of goods or services to compare the purchasing power of each local currencies, India would not have gotten that high. Even if India is in the first position, very likely US will close the gap.

About your post, you are absolutely right, in a populous country, the GDP will be higher as a result of higher work force, production and activities etc, but not absolutely reflecting the standard of living in a country. Nigeria has the highest GDP in Africa, but we in the country know how people are suffering, minimum wage of ₦30000 monthly, if converted to United States dollar in parallel market, it will be $52.63 monthly (purchasing power is low but that amount is like suffering), the rate of unemployment is very high.


So before GDP will be used to know if citizens of a country is having quality standard of living or to determine if a country is economically fit, population of the country has to be determined, in populous country like India and Nigeria, their GDP should be higher than what it is now if their economy is good.

But what I just know is that this does not change the fact that they are part of the country that is adopting bitcoin and other decentralized currencies as a result of local currency depreciation.

India being technologically and economically poor is a wrong statement. As every country have poverty India has poverty, but the economic situation is far better compared to many other countries in the world.

Second I want to mention about the number of smartphone users in India. It stands next to China with 439 million smartphone users. This can be considered as a fact to show India is technologically good. It holds the second highest population which is also a reason for the same. Among the 439 million smartphone users 100 million being cryptocurrency users is really a big thing and shows the wide market of India.



India hasn't taken a strong decision on the usage of cryptocurrency. However there is some clarity provided with the restrictions on privacy coins. Indian media is a big reason for this growth, because people are much into following the advertisement by popular faces.

Ahh....thank you for that clarification.  As I was reading the first few posts here, I remembered a map of the world showing where crypto is legal and where it's illegal, and I could swear I saw India colored red indicating that they'd made it illegal.  Good to know that the situation changed.

I don't know all that much about India as a country and certainly very little about their economy, but I do know that pretty much every Indian I've met in the US has been of above-average intelligence.  And yeah, even though that's a positive pigeon-holing, it's still pigeon-holing, which is still not a great habit to get into.  Nevertheless, I'm betting that they're going to be responsible for some future innovations in crypto, whatever they may be.  I don't think I'm way off base in saying that engineering is extremely popular as a subject of study in India, so there are probably a shit ton of math and computer geeks with great ideas for crypto projects. 

Isn't GDP a reflection of total domestic product?  If so, India's size alone would skew them toward the top of that list and wouldn't be an accurate measure of their general economic health.  I could be wrong, and I'm way too lazy to research it for the sake of this post.

According to the world population review, India is among the top 13 list of poorest countries in Asia based on their GDP per capita in the year 2020. Despite belonging to that, I believe India is not really technologically poor because most Indians are really knowledgeable in the technological aspect and field and are actually catching up with the pacing of innovations nowadays. I guess one of the possible ways they were able to disseminate information is through social media platforms and streaming platforms and through seminars and webinars. Hence, there are a lot of citizens in their country who are skilled and knowledgeable about the benefits of crypto and its downside as well.

I guess the side which India is to take, economy speaking really depends on the government and the citizens as well. I think it would just be up to them on how they would see and use cryto. They could either utilize it to their own advantage or the other way around. If they would go for the former, then it could possibly impact their economy in a good way. If they would choose to be consumed by the latter, then it would be a rough patch for their economy.

In my opinion, India is one of the countries with the strongest economy in the world. And also this country is a country that has a history of thousands of years that is full of lessons. We know that there are many inventors and scientists who came from India. And even Bill Gates himself stated that if he didn't cooperate with the Indians, then sooner or later India would come up with their own version of "Microsoft". So my point is, that compared to most countries in the world, getting Indians to learn or use crypto is not difficult, because most Indians are technology savvy. Now the concern is the Bank of India or other financial entities that do not really like the presence of cryptocurrencies in the Indian economic system. They could hinder the adoption of cryptocurrencies in a country like India.

In fact, India is a country that is mostly a pioneer in the field of technology. Maybe you see from the statistics the decline in the economy that is dominated by the population. However, if you pay attention, India is one of the countries that has technological progress that exceeds developed countries. Take a look at some tech developers and there you will find lots of Indian contributions.

PPP means nothing when it comes to Bitcoin.
It does help poor countries when taking into account that food and rent are lower in $ compared to other countries but when it comes to purchasing crypto this doesn't make snese anymore. Furthermore, you're looking at the total GDP, which makes no sense once you have to divide it by 1.3 billion.
PPP would place India on average at 8,079 but that doesn't mean anything once you have to purchase an internationally traded commodity, then it's the nominal you're having to look at and that's $2,313, now you look at South Korea and see that's  $34,866. So 17 times higher per capita!

The minimum wage in India is 2.8$ a day, the minimum wage per hour in Germany 11$.
It takes the minimum wage earner 100 000 worked hours in India to earn a BTC and 3 300 work hours in Germany. 50 years vs a year and 8 months.
Want more examples?

And the 100 million number, meh!
I've seen it so many times without any proof other than the surveys ordered by the exchange that I don't think even 10% of it is accurate.

.

Resources just like PPP mean nothing, compare Russia with Japan or Brazil with Taiwan.

Then where this will take us so far. In a short term, this country could be benefited through this money that this crypto worker brings into their country but in the long run how this will impact that countries economy? Many people from this country invested in bitcoin and dogecoin by seeing massive growth in short times and many of them do this by taking a bank loan or selling property. Most of these people are unaware of the risk involved.

So don't you think this uneducated investor not only affects his financial condition but also the country he lives in? Is that the reason many third-world countries are not legalizing bitcoin?

I've just based my opinion on the link that I've read and when it comes to the economic status of a country, there's the basis that it had shown. But I'd like to thank you for that link since I don't really know a lot of things about them and if there is new information that's being shared with me, I'd be happy to extract and accept it and well, that's convinced me that sad reality.

In 2020, the population of India was around 1.38B, that's the number that will show if you use keywords of India's population on a search engine. And on this article from the same website: https://www.statista.com/statistics/558610/number-of-mobile-internet-user-in-india/
It says about 749 million have access to the internet and 744 million used to access their smartphones. You're right that it's half of the total population but I'd say that it's still a big number, 744 million people and it will just grow overtime.

Yeah, it's confusing. But with what I've read the latest, it is like that they're going PRO with bitcoin/cryptocurrencies and looks like the positive development starts there.

Isn't the fact that a country who is "economically poor" is enough to explain why people in a third-world country continue to use crypto as a hedge to make a living and put food on a table?

Similar to the Philippines, which is also a third-world country, bitcoin or cryptocurrency in general is used to make a living. Some individuals here are considering becoming full-time traders, NFT flippers, airdrop collectors, and so on, as long as they are making money. Another factor could be the economic impact of the pandemic, as well as the global adoption of cryptocurrency.

I don't call india a poor country since they have enough resources as well good technological adoption towards new innovation so I will not be surprise if they are the top country who use bitcoin since there young people are so talented interms in IT industry. Maybe for now the only thing india economy can benefit from cryptocurrency is their citizens using their earn money to circulate their earned money to use it upon buying goods and other businesses.

I know a good amount of Indian people working in the IT sector and they are doing very well. But the reason crypto had been created can not be achieved in a country like India. How you can step towards mass adoption of a technology that requires a digital device as an essential element. And how you can maximize your economical capability without half of your country's population who doesn't have access to the internet.