Why Bitcoin Is Unsuitable For Payments In India?
High volatility, lack of sovereign guarantee, and complex tax rules make Bitcoin unsuitable as payment tender in India
few months ago, El Salvador adopted Bitcoin, but ever since, a whopping 86 per cent of merchants in the Central American nation have not processed a single bitcoin transaction. This was revealed in the First Business Survey 2022 report, carried out by the Chamber of Commerce and Industry of El Salvador (Camarasal) between January 15 and February 9, 2022
No Guarantees
Fiat currencies have intrinsic value because their supply is controlled and backed by valuable reserves and a sovereign or central bank guarantee. Cryptocurrencies, barring a few stable ones, are not backed by any reserve or sovereign guarantees.
Manish Kumar, co-founder of GREX and RealX, a blockchain platform, says that since the value of cryptos fluctuates a lot, and since they are direct public ledger-based, no central bank can intervene to stabilise them. If such cryptos are used to buy items such as bread, you may not even know how much your bread will cost. This nullifies their use as currency, “Kumar adds.
Volatile Nature
Bitcoin saw a huge seesaw in prices throughout 2021 on WazirX, an India-based crypto exchange. According to data from the Bitcoin Volatility Index, the lowest price of BTC was $28,803.59 on January 1, 2019, and the highest was $68,789.63 on November 10, a difference of 138.8 percent.last 30 days, the volatility percentage of Bitcoin was 4.18 percent
