Are cryptocurrencies illegal in India?


Zaibatsu

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Who cares? It's too late to buy it anyway. I'm pretty sure right now noone would shed 5L Rs(conversion rates shared from google) for a bitcoin unless he is super rich or otherwise crazy or in control of his inheritage
 

Soyab0007

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Who cares? It's too late to buy it anyway. I'm pretty sure right now noone would shed 5L Rs(conversion rates shared from google) for a bitcoin unless he is super rich or otherwise crazy or in control of his inheritage
Late is an early word here
And What if I say, that 5L would be 20L within a year...
would you still not buy ;)
 

Sub

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Yeah, I was told it's too late when it was 10k. Then at 50k, again at 1L, and now at 5L.
 

booo

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Very interesting perspective. He says blockchain is good but bitcoin is bad. and how bitcoin will fail when governments start regulating it. especially SEC here in US. What happens when they have to start auditing bitcoin transactions and filing SEC reports.

@13:30

He said the same thing when bitcoin was 19k
 
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Soyab0007

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I agree bitcoin will fail sooner or later.. Tech evolving way too fast in Crypto world than expecting.. Bitcoin still stuck with decade old tech, no scalibilty, 10 min block confirmation less decentralized...

ETH or other blockchain coin will definitely take the crown..
 

booo

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I agree bitcoin will fail sooner or later.. Tech evolving way too fast in Crypto world than expecting.. Bitcoin still stuck with decade old tech, no scalibilty, 10 min block confirmation less decentralized...
ETH or other blockchain coin will definitely take the crown..
In my opinion, I don think this is possible. few things to consider on block chain as a technology to replace the money.
  1. The number of transactions: Everyone knows that the bitcoin has around 7 transactions per second which is really shitty number. ethereum has around 14 per second. everyone talks about this improving but I dont see any technical details on that. to replace anything remotely; even like paypal, they have to make it a couple of million transactions per second to replace a currency like USD.
  2. block chain ledger size: By design, block chain relies on having a complete ledger from the beginning to validate the transactions. every transaction is roughly 1kb and every block is roughly 10mb. and as the transactions happen blocks are added to the chain. this means over time, the ledger size will increase. This is not a scalable model in many ways.
    1. The current block chain size is 170GB. this means that if you want to setup a full node. you will need atlease 170GB of hdd space to store the ledger. Since the blockchain is a distributed database, every full node on the planet needs to have this amount of storage. if you put money on the storage per GB, its a lot of money. https://bitnodes.earn.com/ shows that there are about 10k nodes world wide. every node needs to have this kind of storage. but the bigger problem is that with today's adoption of bitcoin, its 170GB. if you look at the historical data https://www.blockchain.com/charts/blocks-size?timespan=all the size is exponentially growing. this will result in the ledger size growing into petabytes very quickly if every shop and seller starts accepting bitcoin. this would definitely result in either monopoly or duopoly of full ledger since not everyone can afford to have so much of storage space. this will result in opposite of "decentralized".
    2. Now coming to the cost of the transactions. not many people put money on factors like storage for bitcoin transactions. if you calculate money spent on validating a single block in terms of energy, storage, hardware expense etc... it is very expensive. which means there is no future for free/cheap transactions. Actually, the cost of transactions increase overtime as the ledger size increases because the nodes will need to spend a lot of money on storage which is increasing exponentially.
 

cute.bandar

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Bitcoin still stuck with decade old tech, no scalibilty, 10 min block confirmation less decentralized...
huh.. Lightning network is growing already man. literally instant transaction.
Bitcoin is the only decentralized crypto there is. No idea where you got this 'less decentralized' idea ?
 

hotshot05

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huh.. Lightning network is growing already man. literally instant transaction.
Bitcoin is the only decentralized crypto there is. No idea where you got this 'less decentralized' idea ?
Because BitMain controls almost 70-80% of the hashing power. They are closed source. Whether they have a backdoor or not is not known. They can mine into their own wallets when their customers are using their machines.
Also they allegedly use their machines in their mines for some time and after they become a bit old, they sell it off to the customers.
 
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Soyab0007

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In my opinion, I don think this is possible. few things to consider on block chain as a technology to replace the money.
  1. The number of transactions: Everyone knows that the bitcoin has around 7 transactions per second which is really shitty number. ethereum has around 14 per second. everyone talks about this improving but I dont see any technical details on that. to replace anything remotely; even like paypal, they have to make it a couple of million transactions per second to replace a currency like USD.
  2. block chain ledger size: By design, block chain relies on having a complete ledger from the beginning to validate the transactions. every transaction is roughly 1kb and every block is roughly 10mb. and as the transactions happen blocks are added to the chain. this means over time, the ledger size will increase. This is not a scalable model in many ways.
    1. The current block chain size is 170GB. this means that if you want to setup a full node. you will need atlease 170GB of hdd space to store the ledger. Since the blockchain is a distributed database, every full node on the planet needs to have this amount of storage. if you put money on the storage per GB, its a lot of money. https://bitnodes.earn.com/ shows that there are about 10k nodes world wide. every node needs to have this kind of storage. but the bigger problem is that with today's adoption of bitcoin, its 170GB. if you look at the historical data https://www.blockchain.com/charts/blocks-size?timespan=all the size is exponentially growing. this will result in the ledger size growing into petabytes very quickly if every shop and seller starts accepting bitcoin. this would definitely result in either monopoly or duopoly of full ledger since not everyone can afford to have so much of storage space. this will result in opposite of "decentralized".
    2. Now coming to the cost of the transactions. not many people put money on factors like storage for bitcoin transactions. if you calculate money spent on validating a single block in terms of energy, storage, hardware expense etc... it is very expensive. which means there is no future for free/cheap transactions. Actually, the cost of transactions increase overtime as the ledger size increases because the nodes will need to spend a lot of money on storage which is increasing exponentially.
as i said bitcoin is old tech..
Eth or Zilliqa or quarkchain will be the future..
Eth planning for casper, sharding, plasma which will increase scaling to thousands of tx/s
Zilliqa & quarkchain already on sharding technology. and their testnet shows 10k tx/s already and it can be scalable according to the requirement..
 
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cute.bandar

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Because BitMain controls almost 70-80% of the hashing power. They are closed source. Whether they have a backdoor or not is not known. They can mine into their own wallets when their customers are using their machines.
Its 42%. https://diar.co/volume-2-issue-26/ . Plus 9% if viabtc is included, which says its independent while having bitmain as lead investor .
This is not ideal, but even if bitmain tries to misuse their position, they would (a) cause inidivudal miners of the pools to jump away. (b) shoot themselves in the foot, as bitcoin price plunges .
They still could misuse for unknown reasons, like as I said its not ideal. But would this be true for many cryptos ? eth and monero are getting bimain treatment as well , i think.

Not sure how the closed source affects decentralization.. Most miners are going to be closed source, so again will apply to all cryptos, I think.

Samsung has also started ASIC miner production btw

Personally I see Bitcoin as the only crypto that is covered by 100's of intelligent, technically sound nerds and geeks.
For example read this about Sharding. by a bitcoin expert. See the number of complexities involved.
 

hotshot05

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Its 42%. https://diar.co/volume-2-issue-26/ . Plus 9% if viabtc is included, which says its independent while having bitmain as lead investor .
This is not ideal, but even if bitmain tries to misuse their position, they would (a) cause inidivudal miners of the pools to jump away. (b) shoot themselves in the foot, as bitcoin price plunges .
They still could misuse for unknown reasons, like as I said its not ideal. But would this be true for many cryptos ? eth and monero are getting bimain treatment as well , i think.

Not sure how the closed source affects decentralization.. Most miners are going to be closed source, so again will apply to all cryptos, I think.

Samsung has also started ASIC miner production btw

Personally I see Bitcoin as the only crypto that is covered by 100's of intelligent, technically sound nerds and geeks.
For example read this about Sharding. by a bitcoin expert. See the number of complexities involved.
Quoting from the URL that you shared -
According to Bernstein Research, Bitmain controls 70-80% of the Bitcoin mining hardware market, which only furthers the centralization problem.

I was talking about the share of the hardware market which Bitmain has. If they have a backdoor, they can easily mine coins for their own profit but use the customer's power.

Roger Ver had a lot of investment in BTC. Still he promoted and helped in forking BTC into Bitcoin Cash(Bitmain also played a role in it). Don't you think the fork affected the price of BTC? But still Bitmain helped in it. Wherever Bitmain sees profit, they will pursue that path to get more $$$
 

cute.bandar

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BITMAIN HAS HUGE STAKE IN BITCOIN
I was talking about the share of the hardware market which Bitmain has
No mate :) , you explicitly said "70-80% of the hashing power." . Its different.

a backdoor, they can easily mine coins for their own profit but use the customer's power.
Not easily. No way. Not without huge risk of revealing existence of backdoor, or their own rogue URL. Which would mean a crash in btc price. Which probably will affect bitmain most.
They would not be shooting themselves for a small amount. They would need massive motivation for executing something that could/would result in btc price crash
 

booo

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I have been thinking about this, why don't the bitcoin network make the miners to folding@home instead of making some stupid hash calculations which don't help anyone. I remember a time when TE was big into folding@home. seems it slowly faded away. its a good way to do some meaningful calculations which cure diseases. :angelic:
 

hotshot05

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I have been thinking about this, why don't the bitcoin network make the miners to folding@home instead of making some stupid hash calculations which don't help anyone. I remember a time when TE was big into folding@home. seems it slowly faded away. its a good way to do some meaningful calculations which cure diseases. :angelic:
I guess Golem (GNT) does this already!
 
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Gunner

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I think the problem the very basic identity of Blockchain ie decentralised is the biggest problem for the Bitcoin (though without that it couldn't have existed),the users many who aren't aware of technology are directly or indirectly controlling the coin ,they are just putting the money into bubble and eventually it is bound to burst.vv
 

dpandey

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The Reserve Bank of India(RBI) has taken an excellent step of dealing with cryptocurrency. The worst thing about cryptocurrency was that it was not regulated.
Reserve bank is not your friend. Pretty much every reserve bank (with help from the govt with which it is joined at the hip) world wide has screwed the people who trusted their paper.

I would any day take a currency with a open predictable monitory policy than this crap printed by the reserve bank.
 

Zaibatsu

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Cryptocurrency is illegal as per RBI. Now they have instructed banks to deny withdrawal/deposit
 
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chetansha

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So what a few members are doing is...buy Amazon cards using bitcoin and sell them . but the won't agree in open . wink wink.