Impact of bitcoins on India's GDP, Will it rise or fall?
12 October 2017 Posted / 35023 Views
India has started to paint the canvas of technological and economic growth which will pave a way to the widespread market position for its uprise in the world economy. Startups, private organizations are moving ahead with the implementational procedures to apply blockchain and utilization of the digital currencies which is a sign oh the encouragement of these new whims. India has been very successful and flexible in adapting new technologies, which has enhanced these technologies and changed the view of the world towards India, due to which India has become the fastest growing economy. In case of cryptocurrencies and blockchain, they have started to created waves in the Indian economy.
There are many challenges that bitcoins have to pass through, to acquire a position in the market and economy which will in some way affect the GDP of India. Bitcoin can go through another shilly-shally due to the security and volatility issues that are the major concerns amongst the users of Indian investors. Regulations from the government are also in a doubtful state. So, people may also not develop trust on bitcoins, but bitcoins being so attractive, that it is difficult to ignore and resist the temptation to invest in it and enter the crypto market.
In the recent demonetization row, the GDP of India also suffered a bit, but it suffered mainly because the local currency was involved. But, will it get affected in the same way if bitcoins are involved? The main factor that is involved in the impact and the extent to which the bitcoin will be used. Bitcoin will only affect the GDP if bitcoin becomes widely accepted and contributes to the economy. If bitcoins become an integral part of the economy, then according to the market prices the GDP will be boosted, because the government will decide on bitcoins, if and only if it feels that it is secure for the Economy.