I personally believe whether other crypto currencies thrive because of Indians or not, Bitcoin is going to thrive because of the retail investors in BTC. And let me tell you it is a racket.
In 2018, the Reserve Bank of India banned institutional support of trading in BTCs till in 2020 the Supreme Court of India struck down the Regulations.
The result is that Crypto exchanges have mushroomed all over and some of those have even sponsored some big events! They are in a publicity binge.
All the exchanges are talking about BTCs and giving free BTCs worth around ₹500 to anyone who would open an account with them.
Let us pause for a minute and understand what is “₹500 worth of BTC!”
The smallest denomination of a BTC is a Satoshi.
What is the value of a satoshi?
The value of a Satoshi is one BTC divided 10,00,00,000. So the Bitcoin and Satoshi are separated by miles!
To put it in perspective, One satoshi is 0.000000001 of a BTC.
There’s a lot of verbal calisthenics in the marketing of BTCs in India. For example the hundredth paise after ninety nine, makes the rupee, as regards a BTC, the tenth crore satoshi after nine crore ninety nine lakhs ninety nine thousand nine hundred and ninety nine would make ONE BTC.
So what is it that one gets when one is given a free entry into the exchanges with an initial bonus of ₹500?
At the time of my writing this blog (10/09/2021) the value of one BTC in ₹ terms is
₹ 34,60,917. In terms of Indian rupees one Satoshi would have to be divided by 100000000 to arrive at its its exchange rate in Indian rupees, which would be
₹0. 0346. That’s roughly three and a half paise! In fact whatever a small time retailer buys, is never mentioned in Satoshi, which would be the unit of purchase. Which means when an Exchange offers a free ₹500, that the Exchange would credit to their account 1445 satoshis, but the retailer who has been credited with 1445 satoshi would be so happy to see that he has already made 0.000001445 of a BTC!
From hereon one would be gratified that one has started building his investments in BTC – the mother of all cryptos.
To have a clearer understanding, if a person were to invest ₹10,000 per week every week, it would take seven years to reach today’s value of one BTC, but the irony is that, the value of one BTC is NOT going to remain static for that person to acquire one BTC! In all likelihood, after the halving of 2024, BTC would become a rarer commodity and the value, even if BTC had doubled by then, the investor has to make a weekly investment of ₹10,000 for the another seven years! So his dream of earning one BTC would take 14 years, but the story would not end, by then on the 8th year there would be another halving and in the 12th year there would be another halving!
The foolish retail investor could weekly pay the exchanges ₹10,000 and yet the investor would not be the owner of a single BTC till Kingdom come.
This is a typical LABAN SCHEME. Show Rachel and push Leah; after pushing Leah, allow Rachel to also marry Jacob (concession to the investor); then Leah and Rachel together would give their handmaiden (develop the numbers in the family), but you can never leave the Syrian Laban with your wives or your Sheep and cattle! The investor would be in thrall and yet be kept in hope of a bright future!
The exchanges are talking of BTCs but they are pushing a minuscule part of a BTC; yet the exchanges themselves would be leveraging the BTCs they collectively hold on behalf of their retail clients.
Every transaction would enhance the kitty of the exchange, which in turn could leverage it! In India with the truly literate level being definitely not the stats provided by the States, which are competing with each other in data embellishment, there is very little hope of any of the crypto investor securing his BTC holdings in cold storage. Thereby, leaving his holdings in the hands of the Exchange “runners”, as they wouldn’t have any territorially determinable office – Definitely not within India, much less amenable to the Indian laws. It may not be a surprise if they vanish without a trace citing hacking and myriad other reasons!
Welcome to the world of FINANCIAL INSANITY with the LABAN SCHEME!
(Let us get this one straight, my writing is limited by my understanding of Cryptos and as the wise one says, despite one’s understanding, ignorance far outweighs, out-numbers one’s knowledge. Hence this is NO FINANCIAL ADVICE – this is purely written for my pleasure and if you gain, it is God given SPIN OFF, if not, carry your cross and follow – Whom, that you may decide)