Earlier quoted context omitted.
You can't con a honest man, but a greedy man... that's easy.
I’m perplexed by the use of “honest” and “greedy” as the opposites...
I read that as tangents, not opposites
How to Lose $3B of Bitcoin in India
21–30 of 83 posts
Re: How to Lose $3B of Bitcoin in India
#22Non-AMP version: https://www.bloomberg.com/news/articles/2018-08-09/cryptokid...
Thanks, changed from https://www.bloomberg.com/amp/news/articles/2018-08-09/crypt....
Re: How to Lose $3B of Bitcoin in India
#23From the article, it seems like I didn't really understand the implications of Modi's actions to invalidate so much hard currency. Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
There are two important facts for Modi's demonetization action.
Fact 1 : 86% cash of the currency in circulation was made invalid
Fact 2 : Unaccounted income in cash is approx. 3%
Once you combine Fact 1 and 2, you'd know where this goes. Anyways, NPR has two podcasts on this [0,1].
Re: How to Lose $3B of Bitcoin in India
#24Earlier quoted context omitted.
Yes, as a Westerner I hadn't even heard of this massive invalidation of 86% of India's cash currency. Pretty dramatic, certainly could have helped the massive crypto price run-up in late 2017. Also helps to demonstrate the value of a currency that can't be manipulated by state actors.
The issue is that non-state actors were hiding money to avoid taxes. I wouldn't label prevention of theft as manipulation.
Invalidation is manipulation. The goodness of the reasons does not matter. Some people prefer a currency that can not be invalidated (shrunk) or debased (grown)
Re: How to Lose $3B of Bitcoin in India
#25Earlier quoted context omitted.
The issue is that non-state actors were hiding money to avoid taxes. I wouldn't label prevention of theft as manipulation.
Invalidation is manipulation. The goodness of the reasons does not matter. Some people prefer a currency that can not be invalidated (shrunk) or debased (grown)
Wouldn't creation be manipulation too? As in the creation of the genesis block with Bitcoin?
Re: How to Lose $3B of Bitcoin in India
#26From the article, it seems like I didn't really understand the implications of Modi's actions to invalidate so much hard currency. Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
Yes, as a Westerner I hadn't even heard of this massive invalidation of 86% of India's cash currency. Pretty dramatic, certainly could have helped the massive crypto price run-up in late 2017. Also helps to demonstrate the value of a currency that can't be manipulated by state actors.
> Yes, as a Westerner I hadn't even heard of this massive invalidation of 86% of India's cash currency.
Happened on 8th Nov 2016 - the western news cycle was laser focussed around a certain historic election.
This wouldn't have hit front page on the 9th, for sure.
Re: How to Lose $3B of Bitcoin in India
#27From the article, it seems like I didn't really understand the implications of Modi's actions to invalidate so much hard currency. Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
Indians with large amounts of hard currency are usually involved in some sort of tax evasive maneuver and sometimes involved in criminal activity. Corrupt politicians will use enormous amounts of currency to influence elections, so in this case the party in power (BJP, similar in ideology to US Republican party) used demonetization to disarm other political parties before the elections while appearing hard on corruption.
There are numerous ways that wealthy individuals and businesses got around demonetization - for example, a bank manager could spread a large amount of "black money" across multiple accounts in the names of existing account holders, deposit a minimum deposit to avoid reporting requirements, and then withdraw the original amount later (minus a 20% commission) and return it in the form of new currency. The only people who were hurt were the average people who had to stand in long ATM lines or withstand reduced economic volatility. An established business may be able to withstand a month of severely reduced business but a street vendor, laborer, service worker, etc (a large part of the population) could not.
* The political disarming is from my own speculation and the Washington Post wrote a great article on the economic impact: https://www.washingtonpost.com/news/global-opinions/wp/2017/...
Re: How to Lose $3B of Bitcoin in India
#28Earlier quoted context omitted.
Invalidation is manipulation. The goodness of the reasons does not matter. Some people prefer a currency that can not be invalidated (shrunk) or debased (grown)
Wouldn't creation be manipulation too? As in the creation of the genesis block with Bitcoin?
but everybody knows the approx. creation rate of bitcoins. Fiat money creation is not predictable to the same mathematical degree.
Re: How to Lose $3B of Bitcoin in India
#29From the article, it seems like I didn't really understand the implications of Modi's actions to invalidate so much hard currency. Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
To add to the plight, ATM’s were always empty. It’s the governments responsibility to make sure they print the new currency and fill them in ATM’s as per anticipated demands.
I had myself witnessed this. One of those days people were waiting outside a particular bank ATM, since the guard had said it may take 2 hours for cash to arrive. An ATM Van came and cash was unloaded into a bank ATM machine.We saw that bank officials were withdrawing the cash, and wouldn’t let us (the general public) withdraw cash. Obviously they were doing this to curry favors to some influential rich.
Also, I missed my friend’s marriage because of this.
Only yesterday did I get to know that one of the prominent builders ran out of business courtesy demonetization.
Re: How to Lose $3B of Bitcoin in India
#30From the article, it seems like I didn't really understand the implications of Modi's actions to invalidate so much hard currency. Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
Yes, as a Westerner I hadn't even heard of this massive invalidation of 86% of India's cash currency. Pretty dramatic, certainly could have helped the massive crypto price run-up in late 2017. Also helps to demonstrate the value of a currency that can't be manipulated by state actors.
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