The country which had banned cryptocurrencies in the last few years have now allowed the banks to find traders who want to use cryptocurrencies. The Reserve Bank of India has removed all prohibition from the use of cryptocurrencies.
There was an RTI filed to know about the status of using cryptocurrencies in India, but the RBI clarifies that there is no more such regulation that might prevail. The bitcoin pro website will tell you about the status of bitcoin in India, know more about bitcoin-rejoin.com. It is said that after RBI had announced about the legalization of the bitcoin, the Supreme court had completely quashed the idea of it.
Reasons for Banning
The fact that cryptocurrencies were banned had several secret reasons which many did not know.
Digital currency
Bitcoins are digital currency and safety regarding the digital currency is very difficult. There are hackers who are awake even when you are asleep, and they know various tricks to get through your safe to get your bitcoin. Hacking bitcoin is the only job for some do it is evident that some must be aware of the whole system of the bitcoin. If you are an investor of bitcoin then know one thing very well that someone also knows the entire technology of the blockchain, and for them, it is very easy to get your bitcoin.
Taxable
This is a major problem from the point of view of the government, it is not easy to pay taxes for bitcoin. The value of bitcoin is volatile hence it would be difficult and unfair to impose a tax on bitcoin trading. But on the other hand, the government also knows that it’s not possible to pay the tax. But that will be a loss again because however you earn bitcoin, it is an earning and you can’t just avoid the tax. It is important that the government does implement some tax but again it becomes difficult to take the tax.
Use of Fiat Money
While we all know that cryptocurrency is a kind of digital money but at some point of time it will require some of the fiat currency to buy it, like earlier bitcoins were of just $100-$1000 dollar but now the prices have increased hence it is important that you know how much you have to spend. Buying or trading bitcoin or even if you just invest on bitcoins means that there is nothing much apart from using the extra money that you save. Now you might be thinking that why do we invest, well we invest to grow our savings. Money can be grown but not by nurture just by investing.
Investment in bitcoin is very important it will give you back large income later on in life. So if you have enough money to survive on in the current days then you can earn some extra money and let it grown for your future use.
Lack in People
Trading bitcoin during a pandemic is fine because there is no work and no source of income so one has to earn money to live life and feed themselves and the family but when it comes to making it legal, the government is worried that when people will be able to earn money by doing nothing then they will keep on doing nothing and earning money. So, it is important that people do not leave the mentality of working.
These are some of the reasons which made the government think and rethink the purpose of the bitcoin being legalized because it could hamper the dignity of the constitution and the government. However, it has now been legalized after many controversies.
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