What could possibly happen if and when a tiny fraction - one percent - of the Indian population gets a hold on what Bitcoin could do for them in the country’s time of demonetization, which has forced the citizens into applying unusual efforts to access and use their hard-earned money?
Something big, but not unexpected.
For starters, a lot is happening globally and India is one of them. Taking Vinny Lingham’s tweet on Nov. 17, which says:
“I don't think the market fully appreciates how much money is about to flow into Bitcoin over the next month.”
With hashtags like; #india #trump #china #fed, it could create a nexus, with the prediction by CivicKey’s CEO that the price of Bitcoin will hit the $1000 mark before the end of 2016.
Lamassu’s co-founder Josh Harvey started this puzzle with a tweet that says that there are 13 mln people in the Indian one percent, and the fact that many of them will be hearing about Bitcoin now is in itself a big deal.
With the Editor in Chief at Adamant Research, Tuur Demeester, adding in a tweet that Bitcoin, on Indian exchange Zebpay, has been selling for 20 percent premium, equivalent to $895, one could either join the view that the digital currency will jump into its store of value element or agree that the arbitrage reflects the uncertainty around the Indian rupee.
For Cashaa’s Kumar Gaurav, the issue in India created an opportunity window in the form of a huge gap between the west and the east, which is very good for his P2P platform. It is helping millions of Indians to transfer money in India without passing through intermediaries or banks, especially as people in the high liquid market are looking to sell their Bitcoins in India.
Gaurav says to Cointelegraph:
“Well, no doubt that what is happening in India will boost the Bitcoin price in the long term. After the news of demonetization came out, people rushed to buy gold as it is seen as the safest way to keep the value in possession.”
“But then it comes with the issue of storage and movement, it would be hard to say what the number of people that have heard about Bitcoin during this process is. One percent is a big number in India and if one percent of the people will start becoming involved in this, it will take Bitcoin’s price through the roof. Bitcoin price is already 20 percent higher than the average price and in coming weeks it will go up in the short term.”
The big question
How will one percent of Indians get to know about Bitcoin? That’s the biggest puzzle no one has a solution for, especially as people still love cash because it gives them control to their value and they don’t have to go through any intermediary to exchange it for goods and services, Gaurav explains.
But this strong belief held in paper notes, is challenged when governments decide to scrap them.
“Currently, Indians are in a state where they are forced to discover alternate methods which gives them control of their value. Bitcoin is a unique product with a value which is completely controlled by the owner and can move instantly P2P, like cash. I see that this growing awareness will have a very positive effect in both the long and short term because it will build the awareness and validity around Bitcoin and other cryptocurrencies as well.”
Until the puzzle is resolved, we’ll have to wait and see what will be the trend in the next month.