Note from the CEO: Oh my, Venezuela, India and (coming soon to a major Asian nation near you……China?) many others are ‘forcing’ people to open bitcoin wallets. Paper money is so last year, ya know. Now here is one reason for the spike in the price of bitcoin recently.
While the world waits for digital currency rules from governments around the world, some countries are forcing their populace into bitcoin. India and Venezuela are making bitcoin the safe haven by the leaders of those country’s getting rid of old currency notes. Using a multitude of excuses to justify their actions, old paper currency is forcing people into bitcoin. The author has a great story here.
“Bitcoin is racing towards the $1000 mark again. And the recent currency policies of India’s Modi and Venezuela’s Maduro may have something to do with it.
How? By pushing people into Bitcoins—the digital currency rally coincides with Modi’s and Maduro’s efforts to get rid of old currency notes.
Prime Minister Modi and President Maduro have very little in common — except they have pursued policies recently that replace large notes in circulation with new notes (India) or with coins (Venezuela).
For a good purpose, of course. Prime Minister Modi has been trying to fight corruption, a widespread problem in India. And President Maduro has been trying to fend off capital flight from the ailing Venezuelan economy.
While both policies have had some success in achieving their objectives, they’ve had a serious side effect, too: undermining public confidence in national currencies as a store of wealth. Why hold a currency that can be printed in unlimited amounts and which has an expiration date?”
Source: Forbes Contributor