After Bitcoin the desi Indian virtual currency Laxmicoin emerges
Bitcoin news are making a round in India. India has got its own virtual currency Laxmicoin. Laxmicoin is under process to be launched.
Bitcoin is already present in India, India ranks at 16th place in trading of bitcoins. Already 3 exchanges in India are under negotiations to trade bitcoins.
It would be intresting to see how Indian regulatories react to this? Already RBI has issued warnings to use these type currencies.
This is my take on the BitCoins
1. Intrensic Value: Bit coins have no "Intrensic Value" , for example if we have 2 apples or 1 Kg of rice or a liter of juice even petrol or 5 acers of land! we can put these things to real use and benefit from it but Bit Coins have no intrensic value and cannot be put to any real use apart from storing it in some digital media.
2. Acceptance : For any currency acceptability is the main factor, No Acceptability means no use, so to drive acceptability among non computer users can be challenging and just impossible in many cases so even if used in the long run to be able to use it seamlessely like regular currency ( Issued by central banks ) will remain a challenge.
3. Competing Cryptos: Regular money is issued by authorised "Central Banks" with specific mandates but crypto currencies are created by "nameless" "faceless" and "hidden" entites so to make it authentic is difficult and with new crypto currencies cropping up the value of the crypto currency will be questionable and with lack of exchanges this problem will be compounded.
4. Fluctation: The value of Bit Coins fluctuate wildly which is another major cause of concern as the currency is expected to be relatively stable with minor variations say for example if a liter of petrol costs beetween 70-80 rupees people will tolerate it what if the value of petrol varies from 70 to 4000 rupees? how can any one do any meaningful planning on expenditures?? Just to understand this clearly track the variation in bit coin value in UDS terms in last 2 years. Same will hold for any new Crypto currency to come in future. In the absence of regulations and currency exchanges controlling the fluctation is a challenge.
5. Regulation: After the "Silk Route" fiasco bit coins are viewed negatively by most central banks mainly because it cannot be regulated and also because such currencies challenge the traditional banks. So the regulation is already pointing towards making it illegal and it wont be long before thay are declared so creating a exchange for such illegal currencies is not only a challenge but can take the people working on them to jail.
There are many other pertinent points to cover, I have touched the important ones.
Wish there was a like button for replies.
Nicely summerised the bitcoin effects. Bitcoins, i dont think have a future. But if any centralised bank support them than there is a possibility of acceptance.