![]() | #16 |
Senior - BHPian ![]() Join Date: Sep 2009 Location: Chennai
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| re: The Cryptocurrency & NFT Thread I am also considering putting some money in Cryptocurrency. Are there any other service providers other than Zebpay? what are the currencies you people are investing off late. |
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![]() | #17 |
Newbie Join Date: Nov 2011 Location: Delhi
Posts: 22
Thanked: 30 Times
| re: The Cryptocurrency & NFT Thread Some more questions, please shed some light on the following: - If bitcoin legal status is not known for India, how do we get the money back to our accounts and what is the taxation applicable on it ? Lets say I invest 1L today which grows up to 5L in a year. Will I be able to transfer this money back to my account ? And if yes, what kind of capital gain tax do I incur ? - What are the factors that are controlling bitcoin value ? Is it market situation/political situation or independent of that ? - Its status quo for bitcoins in India but they can be declared illegal very soon like they are for few countries. How high is the probability for India to declare it illegal ? - Since early 2017 the bitcoin rates have spiraled like anything. What is the general advice now ? Is it a good time to invest or are the rates expected to crash or normalize in near future ? |
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BHPian ![]() | re: The Cryptocurrency & NFT Thread Quote:
You may have gotten an answer for your questions by now but here are my two cents. 1. In India, as of now, there are not many exchanges via which you can buy or sell cryptocurrencies. ZebPay seems to be the best because it not only has the highest number of users in India (user base has crossed 5,00,000 users) but also because it has good customer service and app UI. Other than ZebPay, there is Coinsecure and Unocoin. I personally prefer ZebPay because it is faster and gives the cheapest bitcoin rates in India at the moment compared to the rest. 2. Yes, you can transfer your bitcoins to any wallets, in India or any other country in the world. There is a transfer fee that will be charged to you by your local wallet (ZebPay in this case) which varies as per the bitcoins you are transferring. You can find the exact rates in the ZebPay app as well. In other countries (specially USA and others) the transfer charges and brokerage charges are low because there are a lot of wallet service providers already. Soon it will be the same case in India but we will have to wait for that. Quote:
I am investing in Ethereum and Bitcoin all the way. I guess it is going to go in the same footsteps as Bitcoin has gone in the past few years. Litecoin is also another investment opportunity but according to me, it will take some more time to stabilise. Quote:
Just before June 2017, the Government of India had set a special committee to understand the pros and cons of cryptocurrencies, for which even citizens could submit their own views. The Government basically had 3 options regarding this, first, to make cryptocurrencies illegal in India because of which no citizens can legally buy or sell cryptocurrencies. Second, to let it be as is. Which means to not interfere with private exchanges/wallets operations and let them decide the prices. And third, to regulate it. By regulation, the Government wants to not only educate the average citizen about cryptocurrencies but also wants to step in the make sure that private companies aren't setting their own prices for their own benefits (which is exactly what is going on in India as of now). Regulation and stepping in of the Government will not only reduce the difference of price of Bitcoin in India and in other countries, but will also give us more options in exchanges and wallets to choose from. This indirectly will also reduce the transaction charges we have to pay as of now because competition will increase. The good news is that just in the middle of this month, the Government has accepted the committee's plea to regulate cryptocurrencies in India. The committee will be submitting a plan by this month end which will be put in place and tested for a span of 6 months and then the permanent call will be taken by the Government about to future of cryptocurrencies in India. Our Government seems to understand the prospects of cryptocurrencies and wants more clarity to be present among the citizens. About the increase in prices of Bitcoin, I do not think that it will reduce in the near future. As I have said earlier, Etheruem seems to be an interesting investment and so does Litecoin. Ripple will take some time but will soon join this list. Disclaimer:- All these views are my own, I do not take any responsibilities for any actions taken by others. | |||
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![]() | #19 | |
Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Quote:
Until bitcoin exchanges make it possible for the government to collect tax, it will remain outside of the law. Next comes monetary policy. How will the RBI control money supply when bitcoins come into play? | |
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![]() | #20 | |
BHPian ![]() | re: The Cryptocurrency & NFT Thread Quote:
This is the reason why the Government will lay a rough plan and observe for the next 6 months. Only after that will a permanent decision be taken. Time will tell, and I hope there aren't many terms or conditions to it. Many Governments of other countries are flexing rules and regulations to make cryptocurrencies easier to deal in. Let's hope for the best. ![]() | |
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![]() | #21 | |
BHPian ![]() Join Date: Dec 2009 Location: Bangalore
Posts: 249
Thanked: 352 Times
| re: The Cryptocurrency & NFT Thread Quote:
If you're buying/selling significant amount of cryptoassets, it'll anyway raise a red flag unless you're paying some form of tax (either Capital Gains or tax on income from business) on the profit. But I agree that our bureaucrats probably realize that the only way to prevent another black market forming is to regulate cryptocurrencies. | |
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Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Here is a nice article explaining blockchains. https://www.linkedin.com/pulse/block...-mohit-mamoria |
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![]() | #23 |
BHPian | Discussion regarding Cryptocurrency like Bitcoin/Ether Hello Friends, Purpose of starting this thread: Nowadays I see most of the people around me are banking heavily on crypto currency like Bitcoin, ether. I am the only one who do not think like them. Some of my friends are invested in them with their life earnings. These situations compel me to dig deeper into this topic. Team BHP is mainly automative forum and most of the people around here generally have good knowledge about most of the aspects in life, in total intellectuality level is best compared to other forums. There are discussions on many other topics happening in Team BHP but I could not find discussion thread on this topic. So I have started this thread so that we could gather knowledge around the subject. In the last few years crypto curreny saw multifold increase in their trading price. Moreover some Initial Coin Offerings give opportunity to people to make fortune or loose fortune. It is gambling in a sense. But technicality revolving around this concept is also interesting. Personally I (I work in Germany) know a friend who has earned 30 ( Thirty, you read it right ) times through initial coin offerings (ICO). Amount earned by friend is staggering/mindblowing. There are instances happened in front of me where people have earned 4-5 times in a day. All the time I did not trust them what they are saying, but when I saw it happen I thought I need to gather knowledge and there is no better place than the forum. I invite you all to discuss about the subject and people like me can get knowledge about the subject. May be it is bad or biggest scam of the century but may be it is logical thing as well. Knowledge build up will help all of us to solve the myth. If it is good then it should not happen we miss the bus and stay behind because sometimes I get queries from some of friends who are from remote place, really small village, native place of my father. Because I work abroad they think I may have knowledge. But I simply say I dont know. Enough of explanation above about introduction for thread. It is not adding any real value. I am sure now experts will start adding value by sharing knowledge they have. Please welcome to discuss about CRYPTO CURRENCY Trading and Mining, ICO and related topics, Opportunities and Risks, Future it holds. Last edited by sushantr5 : 8th September 2017 at 20:56. |
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Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Quote:
Let's look at the goals of bitcoin or any other cryptocurrency. 1) Money without the middlemen like the central bank. Money prior to central banks were nothing but precious metal with intrinsic value. So this is like going back to using gold/silver as money. That means you are personally responsible for storing your money. You know what they say about taking out the middlemen, you have to do the job of the middlemen. If you store your cryptocurrency in your PC, and your hard drive dies, that money is gone. If your PC is hacked, or your online wallet is hacked, it is gone too. You can take printout of your money and store it physically, but if somebody snaps a pic of that sheet with their smartphone, it is gone again. Banks gave the physical safety for our money. Without the banks, we are responsible again for the physical safety. Cryptocurrency rich men can never leave home then. 2) You can do transactions without the oversight of the government. Cryptocurrency doesn't guarantee anonymity, it can be tracked. Not only that, no government will appreciate you bypassing the sales tax during transactions. This will result in legal issues for the transactors. If government can't collect taxes, there is no money to built infrastructure, have a military or simply run the government. 3) Governments can no longer control money. If they can't control money, they will have no monetary policy. Without that, they can't control the economy or the inflation. Money can fly out of the country, and the country will be a sitting duck. Earlier, I had thought that cryptocurrency was for transactions. However, I see it is mostly used for storing wealth, with everybody hoping the value will grow and grow. So it has become exactly like gold. Blockchain is a fantastic technology. However, I am not clear what exactly the problem cryptocurrency is solving. Last edited by Samurai : 23rd September 2017 at 13:37. Reason: typo | |
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BHPian ![]() | I'll try to answer a few. Quote:
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Cyrpto is far from perfect, but things like this take several iterations of evolution. Quote:
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The answer to each and every concern raised in the video is answered by bitcoin due it it's deflationary nature, hence it's value. It's a capitalist's utopia. It's sad to see everybody thinking that bitcoin is only a way to get rich quick, or an "investment". That is what is dangerous, and can lead to bubble-like situations (like the dot com bubble). Last edited by Samurai : 24th September 2017 at 10:10. Reason: merging | ||||||
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Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Tanmay, you just explained why Crypto-currencies in the current form is a half-baked idea. Without central bank oversight and limited number, it tackles the problem of inflation. But since it incentivizes hoarding (and investment or speculation) because of rising value, it creates DEFLATION if there is widespread use. Deflation and Depression are much worse than mild inflation. All you have to do is read economic history. Gold and Gold-backed currencies were solely responsible for all deflationary periods and the Great Depression. In the past, every war was followed by a long stretch of deflation - because all the Gold was spent on soldiers & equipment. And there was very little 'money' in circulation for normal transaction resulting in bouts of deflation/depression. Central banks (or King's treasury) cannot increase or decrease money supply. The romantics who talk about currency that is free from Government intervention have not read economic history nor have understood how economy really works. JP Morgan's CEO says Bitcoin will eventually be worth ZERO, and I'm afraid I will have to side with him. Because Bitcoins neither have intrinsic value (like Gold) nor are Govt backed (like paper currency) https://www.cnbc.com/2017/09/22/bitc...oin-again.html Regarding India & RBI, all you have to do is wait till terrorists start using bitcoins. That's when you can expect India/RBI to ban bitcoins. Last edited by SmartCat : 24th September 2017 at 09:13. |
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![]() | #27 | ||
BHPian ![]() | re: The Cryptocurrency & NFT Thread
I'll avoid going into inflation vs deflation as that might derail us offtopic. I don't mind if we agree to disagree on that ![]() All in all, I am a strong proponent of free market policies, and crypto tends to align with that idea very well. It is important to note that I am referring to cryptocurrencies in general, I am not sure if bitcoin alone can suffice to the needs of the economy. Quote:
The history is full of examples of government-backed currencies going from being exchanged and used to being worthless in a matter of days following a change of policy or the government itself, forced or unforced. And like I said earlier, hoarding is a well-studied economic phenomenon that is not limited to cryptos. I would leave it to the market to correct itself if needed. Quote:
As far as a ban is concerned, the implementation would be pretty redundant. RBI and other central banks know that very well, hence they've taken the regulation route. It was (and still is) in their interest to ban it completely, if they effectively could. China had means and mechanism to ban crypto, and they did, just like they've managed to muscle out Google and Facebook. But thankfully, the rest of the world isn't like China. | ||
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![]() | #28 | ||
Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Quote:
Also, coming to think of it, I don't think crypto-currencies addresses hyperinflation issues either. So bitcoin supply is limited, but then there are 100 other cyrpto-currencies. Theoretically, if all cryptos are well accepted by world population and there is nothing that prevents people from "creating" new cryptos, how is it different from paper currency? Quote:
1) You cannot 'create' Gold. But you can create cryptos. If it is too difficult to mine bitcoin, then mine Etherium. If it is too difficult to mine Etherium, mine something else. 2) Gold has an intrinsic value and industrial uses. For a moment, lets assume that nobody ever buys Gold for investment and Gold prices crash to Rs. 7,000 per 10 gram. But you see, Gold has certain characteristics. It is the best conductor of heat and electricity. You cannot destroy it. R&D firms will come up with a gazillion uses of Gold as an industrial metal if prices fall. Can you tell me what intrinsic value a crypto-currency like Bitcoin has? What is "fair value" of Bitcoin or any other crypto-currency. And while we are at it, why not use STOCKS as a currency? The number of shares of Infosys is limited too. Atleast holding Infosys stocks gives you dividends. It is a hedge against inflation. I can transfer it to you via DP cheques. It is traded in NASDAQ too, so it might be well accepted by Americans too. RBI/SEBI should perhaps loosen the restrictions on trading of stocks, and make it much more transactional like paper currency. | ||
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![]() | #29 | ||||
BHPian ![]() | re: The Cryptocurrency & NFT Thread Quote:
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So is bitcoin at it's fair, correct price right now? The answer to that would depend on what you intend to do with the coin. Hoard it? And hoard it for how long? I would not recommend that. Use it to buy an iPhone on Newegg? Sure, go ahead! I say the same for people buying expensive real estate in Delhi NCR because some properties may be overvalued in the short term. Yet people take loans worth crores and pay interest through the nose and buy anyway. I never recommend anyone to "invest" in cryptos. Only because it is not something they truly understand yet. Investing in something you don't understand is usually a recipe for eventually going broke. Thank your luck if you didn't. Quote:
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Team-BHP Support ![]() ![]() | re: The Cryptocurrency & NFT Thread Quote:
The future society will be very strange if REAL resources (electricity generation & computer hardware) are deployed to create VIRTUAL digital currencies - which has no real purpose for its existence. Why would farmers toil to grow crops? Why would manufacturers bother to build cars and other machinery? Why would RELIANCE INDUSTRIES bother to refine crude oil, when it can use its resources to "create money" with the help of new low cost power plants & high end computer hardware? | |
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