Hey guys, will be talking about, Mass adoption of cryptocurrency or Mainly Bitcoin. Well, countries like El-Salvador has adopted bitcoin as legal tender. Here the question arises, what do you mean by accepting bitcoin as a legal tender?
In short words -> When you use bitcoin just like a fiat currency (INR, Dollar) in order to fulfil your daily needs will be termed as legal tender. Each and everything can be bought or sold by anyone in terms of bitcoin.
Well, inflation is the major issue that everyone needs to face. As we are still under lockdowns and minor covid curbs. In such times governments have printed a lot of notes (fiat currency) which majorly leads to inflation. But, Bitcoin is something that is deflationary (supply is limited and some amount after 2030 will start burning also). Bitcoin has a limited supply of 21 Million as set by Satoshi in 2009. As bitcoin cannot be generated more and as supply is limited and demand is more -> The prices raises up…
Countries like India has not taken any major step still now, Taxation of 30% is just been put up on trading and investing. India has a lot of potential to grow in the Blockchain industry. We have Polygon (Matic), who are doing great and many more startups are on the way to boom this industry.
Let’s just hop back to the topic and discuss the boons and banes of this legal tender.
Inflation, poverty, Cross border payments will be cheaper and easy, One single currency can be traded and many more can be beneficial.
whereas as varying crypto. rates may be very hectic as prices are very volatile, At major dips and Bull runs, people may like to hold the currency rather than exchanging them etc.
I believe at this point in time, the legal tender may be very far away from India. But adoption of the technology and holding crypto. ( with Lower tax rates should be accepted ). In order to let people understand and use the technology.