Topic: What if India or China declares bitcoin as legal tender in the country ? - page 2. (Read 457 times)

That's going to be helpful for the people of those countries as they will be allowed to send and receive payments with Bitcoin and that might impact the value of Bitcoin in good way. But, there's chance that making it a legal tender in such populated nations Bitcoin might see huge number of transactions on daily basis and thus there's chance to see way higher levels of network congestion then and fee might get higher.

Well considering the population density in both China abd India if this was to happen there will be a crazy surge in the price of Bitcoin it may also have some other effects like increase in the volatility of the Bitcoin market
But this is basically hypothetically speaking because for tye mean time I don't see it happening hopefully in the nearest future the government will have a second thought about bitcoin and other cryptocurrencies

I don't think this is possible.

Bitcoin promotion will definitely surge high, and its price will skyrocket once again. But price fluctuations will always be there, as there will always be pump and dump no matter how positive the market is.

However, the probability rate for this to happen is too slim. Note that these countries are not bitcoin friendly and would definitely go against bitcoin as long as they can. But changes are sometimes inevitable. They could take a different path in the future, most probably when other big countries are already into bitcoin as well.

It will increase the relevance of bitcoin as a currency. If a country like China chooses to accept Bitcoin as a legal tender considering that China is one of the countries that many other countries depend on to import some of the products they produce there. If Bitcoin becomes a legal tender it means that buyers from all around the world will be able to pay Chinese manufacturers with Bitcoin. That will be fulfilling the function of Bitcoin as a currency making international trade easier.

Can something like this happen? I say time will tell.

Using bitcoin as a legal tender doesn’t mean it will be the main means of payment because this two countries can never have anything other than their own currency as such it will be used as an alternative currency to their traditional currency. So even if they legalize it today that simply doesn’t translate to its usage by the citizens, the over 1 billion citizen won’t be making daily transactions on bitcoin like you put it out, as there are going to be those who will but even use it, those that will use it will actually limit its usage to transactions that favours them in terms of fees to be paid like cross boarder transactions.

Its impact is simple any adoption growth leads to demand and in turn demand leads to increase in price. So onboarding close 3 billion people is definitely a bullish news that will pump the market

It will create a temporary rise to the price of Bitcoin. That's the impact.
Since most of the altcoins follow Bitcoin's price movement, there's a chance that they might increase as well, but not as much as Bitcoin.

After that, it will be back to normal. Do you expect that Bitcoin becoming a legal tender to these 2 countries have a long-term effect towards the price? I don't think so, and TBH, I don't see this ever happens as well. I mean China has banned Bitcoin at first place, and until now, there's no sign that they're unbanning it. Well, if for some reasons this will happen, I don't also think that there will be an increase in daily transactions as well because I believe people would rather hold their Bitcoins rather than using it to pay something especially now.

I guess let's just not expect for this to happen.

I don’t think they will do that. Both rupee and cny are in pretty good shape. These countries ain’t no like El Salvador which has weak national currency. It made sense fir El Salvador to make btc legal tender but it serves no purpose for both India and China. I only expect China to remove the bitcoin ban and that would be more than enough. We don’t need the involvement of the governments. Actually ignoring crypto is the best thing a government can do for us. Whenever they get involved, they create more trouble for us than doing any good.

Simply, it'd impact to the surge of bitcoin price and expanding the ecosystem of bitcoin blockchain.

Although I don't think this can happen most especially with china but all the same since we are assuming, I think the changes will be definitely be massive in terms of pump of the price cause first the two nations are among the biggest and also their economic strength is also big and imagine a case when all the companies and firms starting acquiring Bitcoin and also citizen are allowed freely to trade Bitcoin, it would definitely impact crypto market although can't say same the economical strength of the nation.

Even in El Salvador with their humble 6 million people they recurred to Lightning for mass adoption via the Chivo wallet when they introduced Bitcoin as legal tender. I'm sure if a bigger country even thinks about designating Bitcoin a legal tender, they would either first investigate the layer-2 landscape, or develop an own layer-2. And they could also offer a completely centralized Bitcoin sidechain, copying Blockstream's Liquid model but with institutions of the state as members of the sidechain federation.

Of course even Lightning needs some time for "onboarding". But sidechains don't have that problem. And the current sidechain landscape evolves quite well, and even if most have still centralized elements, projects like tBTC (Threshold Network), Nomic and (upcoming) Stacks are already "as decentralized as most altcoins". And there's also BitVM which can make sidechain creation even more decentralized in the future (but it needs some time).

So I don't consider the scenario impossible for technical reasons. Of course, politically it is very, very unlikely from today's point of view. However: If there's a "Bitcoin adoption race" e.g. if more countries adopt explicitly Bitcoin-friendly policies and their citizens begin to benefit from price increases, then it may not be completely impossible, above all for India.

If there is such decision taken by the governments of India and China that they will accept Bitcoin as legal tender in their countries, there will undoubtedly be a major boom in the Bitcoin price and cryptocurrency markets as well as the adoption of Bitcoin will continue to grow exponentially and it is more likely to happen because we know that India and China are the most populous countries in the world.

According to a 2022 UN report, China's population was 1.426 billion while India's population was 1.412 billion at that time.


When Bitcoin is legalized as legal tender in these two countries, the number of investors will increase exponentially, which will also increase the price of Bitcoin significantly. Moreover, institutionally investors will be encouraged to buy Bitcoins which will be able to increase the value of Bitcoins significantly. Not only that, when India China legalizes Bitcoin, other countries will also start investing in Bitcoin and the same time Global trust will be created.

When India and China legalize it, they will also announce their country's full support for miners. As a result, the amount of investment will increase as miners express interest. That means  positive impact will be created for bitcoin from all aspects. It will have a positive impact on the entire world.

It is technically impossible to make Bitcoin the main means of payment in a country with a population of over 1 billion people. As far as I remember, the Bitcoin architecture allows for no more than 400,000 transactions per day. This limitation simply does not allow Bitcoin to be made an official means of payment in China or India.

In addition, what about runes and ordinals, which can unexpectedly increase transaction fees not even several times, but by orders of magnitude?

China and India are interested in protecting their national currencies, and they are also planning to introduce CBDC.

Bitcoin may become an integral part of the gold and foreign exchange reserves of these countries, but it is unlikely to become an official means of payment in India and China (in my opinion, this is an unlikely event).

That's the most populated countries on this planet, which will make Bitcoin being used by almost 3 Billion people out of eight billion. This will make Bitcoin more scar and prices should go up by 10x minimum. But I am sure, this is not going to happen until this gets executed in United States / Canada etc. China and India usually follows USA. And India is very against Crypto, so not gonna happen at all.

These countries have the largest population so they really could boost the growth of a bull market. China alone could make their millionaires jump in to save their money from being confiscated by President Xi.

However, they are both member of the BRICS who already declared to have their own currency. They will most likely not see BTC as legal tender. The US has more chances of turning BTC into legal tender unless they go back to the gold standard which I doubt they would.

The same thing that happened in El Salvador and on the Steam platform will occur: people will try it once and never use it again due to high fees and slow transactions.

Until the scalability problem is solved, it only demonstrates how unusable it is.

These two countries already know that it will be a blow on bitcoin, if they make it a legal tender and that will give them less power to control their citizens, especially China who the president is a communist that wants all of them to be under his surveillance. Bitcoin is not from the government and they will not adopt it, because they hate the decentralized nature of bitcoin since it cannot be controlled by them.

For now, that's very unlikely to happen. They might legalize bitcoin but it would be highly impossible to adopt bitcoin as a legal tender. They surely would prefer to launch their own digital currency instead and make it as a legal tender rather than resorting into bitcoin, and yet they won't take full control with people's bitcoin.

So even if adopting bitcoin as a legal tender would bring a lot of positive effects on bitcoin and its community, but it won't be enough to convince these countries to shift into bitcoin as their legal tender.

Why did you choose these 2 countries? Because they have the largest population in the world and you think that will drive bitcoin price better?

But as far as I know these are two countries that are not very friendly to bitcoin. So far, China has maintained a ban on the entire cryptocurrency industry, not just bitcoin and they have no intention of lifting the ban in the near future. Meanwhile, although India has legalized cryptocurrencies but they still apply quite high taxes to this industry, making investors feel uncomfortable. So I don't think there's any scenario where they accept bitcoin as legal currency.
Not to mention both countries have their own currencies and things are going so well they wouldn't need a decentralized currency like bitcoin.

This is very obvious that if China and India declares Bitcoin as a legal tender I think Bitcoin's price will blow up because of the fact that these countrues has huge populations and could be having huge amount of investments in crypto especially Bitcoin and from that I think there will be an insane price surge.