2016 was a very turbulent year all over the world, from elections to a constantly changing stock market. One of the key events of that year was India’s demonetization crisis, triggered by the government’s efforts of combating tax evasion, money counterfeiting, and hidden wealth. So far, this has made some rather mixed effects on not only India, but also to other parts of the world, impacting the value of several currencies around the world. However, one currency has managed to stay strong despite the controversy – Bitcoin, an online form of currency known for its security and ease of use.
But how is that even possible? Why of all things Bitcoin has managed to emerge not only relatively unscathed, but has managed to grow stronger from this crisis? And for citizens in America, how does this affect for people who are looking to buying bitcoin in states such as Ohio?
The Emergence of a Digital Currency
Despite what many news outlets have said about how that demonetization would seem to move India in a certain direction, with the cash shortage that left many banks and ATMs very little physical bills, the stock market crashing, and banking and businesses with uncertain futures, the reduction of the GDP growth rate, industrial output dipping, and even the loss of jobs, many would never expect buying bitcoin to benefit from it the most. For example a Bitcoin company called Zebpay has claimed that the number of users who purchase Bitcoins from them have doubled during the crisis, and purchases have increased as much as 30%.
Because India’s demonetization crisis stemmed from the government’s goals of cracking down illegal money, many believed that Bitcoin’s secure encryption and as well as its non-physical nature makes it a lot more appealing. Hence it makes for a better way of both handling currency without a need to carry anything physical and for the government to better keep track so that it won’t be abused. Many people then began converting over to Bitcoin, which saw the rise of bitcoin in the midst of demonetization in India.
Bitcoin Surges Despite Global Demonetization
The buying of bitcoin remain relatively unharmed. Bitcoin’s success despite financial crisis can be attributed to its low transaction rate, as well as being one of the more feasible options to send remittances from other countries.
In the end, what many have learned about the whole experience is that Bitcoin will continue to be on the rise, no matter how much unstable the market can be.
And for people who live in the United States, in certain area such as Columbus, Ohio, then you don’t have to worry. Because thanks to India’s growing preference for tried and true currencies such as Bitcoin, many saw digital currency as still stronger currency.
As turbulent of a time it was for demonetization to hit certain countries, many would feel relief that Bitcoin would still remain strong through it all. Many would predict that the future would see buying bitcoin growing, and that many more would begin using it besides using physical currency.