The Reserve Bank of India (RBI)’s prohibitive policies regarding India’s cryptocurrency industry has reportedly comprised the catalyst for a migration of Indian cryptocurrency entrepreneurs in search of more amenable regulations.
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RBI Crackdown Drives Crypto Businesses Overseas
The on cryptocurrencies initiated by the RBI has reportedly comprised a catalyst for the migration of numerous Indian cryptocurrency companies and ICOs seeking favorable regulatory jurisdictions.
With India’s banking sector prohibited from providing financial services to businesses dealing in cryptocurrencies, many of India’s crypto companies have been left with no choice but to relocate overseas.
Estonian E-Residency Program Attracts Indian Crypto Entrepreneurs
According to a report by , Estonia has emerged as a popular destination among Indian cryptocurrency entrepreneurs. Launched in 2014, Estonia’s e-residency programme provides a simple avenue through which companies can become based in the eastern-European nation. Estonia also offers favorable taxation and regulatory apparatus for cryptocurrency and blockchain companies.
Nilesh Trivedi, the founder of Indium, is currently completing his e-residency application for Estonia Mr. Trivedi states that he would “ideally like to diversify from India given the way things are moving here in regard to cryptocurrency and the blockchain space. It’s too uncertain.”
Mr. Trivedi states that the e-residency “will just cost me 100 Euros for three years and I can renew it again after that,” adding that “the tax regime there is good.” Mr. Trivedi also notes that “Being registered [in Estonia] will also allow [him] to offer other services and conduct business in the EU.”
Analysts Warn of ‘Crypto Brain-Drain’
Joel John, an analyst at Outlier Ventures, has warned that the RBI’s prohibitive policy regarding cryptocurrency companies risks creating a brain-drain among India’s cryptocurrency and blockchain specialists.
Mr. John stated “We are having talented people and companies from the blockchain space move out of India. There are enough countries out there who realize the importance and want to take a lead in the blockchain ecosystem.” Mr. John added that “Companies moving abroad is not a new trend but the regulatory complexities faced by blockchain companies have accelerated [the trend].”
A number of other jurisdictions perceived to be hubs of innovation within the cryptocurrency and finance sectors have also been cited as popular destinations among India’s migrating crypto industry, including Singapore, Switzerland, the United Kingdom, and Japan.
Do you agree that the RBI’s policies will lead to a ‘brain-drain’ among professionals specializing in the breakthrough industries of cryptocurrency and blockchain? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
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Much has been made of growing global wealth inequality. This trend is set to continue over the coming years with increasing automation in business and World Central Banks devaluing regular peoples savings through quantitative easing. All is not lost though; many are calling bitcoin the future of money. If these predictions turn out to be true, bitcoin could be the greatest transfer of wealth in human history. Believe this is coming? With careful planning you can make sure you are in the 1% of this New World.
Who Really Believes That bitcoin Is The Future of Money?
bitcoin believers are not crackpots wearing tin foil hats and living in their mother’s basement. Instead some of the smartest minds in business are supporting bitcoin and believe in it’s role as the future of money.
Indeed, Twitter CEO has gone on record to say, “The world ultimately will have a single currency, the internet will have a single currency, I personally believe it will be bitcoin”. Other business visionaries such as the Winklevoss twins have been strong advocates and investors in bitcoin since 2012. The twins have already set up their own cryptocurrency exchange Gemini and have already made over a billion dollars each from cryptocurrency.
Still yet to be convinced? There is a saying in business ‘follow the smart money’. have all announced this year that they are entering the cryptocurrency markets. Sure, you might not think any of these people are ‘smart’ but if you do, consider why they are investing their conventional dollars into cryptocurrencies like bitcoin.
In May 2018 the announced that they are working on an online trading platform to allow investors to buy and sell bitcoin. If bitcoin really had no future, why are large financial institutions taking bitcoin so seriously? It’s on you to decide whether you are a believer or not and if bitcoin really is the future of money.
What It Takes To Get Into The 1% In Conventional Dollars?
Getting into the 1% varies depending where you are living in the world and your age. In the United States a 35 year old will need to possess a net wealth of $1.25 million to be considered part of the 1%. For most millenials, the accumulation of such wealth is fantasy. Rising rents, heavy tax burdens and stagnant real wages all prevent hardworking people from ever working their way into financial security. For most, it seems that reaching $11.75 million net wealth by the time millennials turn 65, is all but a hopeless cause.
Imgur: https://imgur.com/a/iuT9gKJ
Have you ever felt that prices for everyday items like food are increasing? Has your wage stayed the same for the last few years? This situation is exceptionally common and the reason why your dollars don’t strech as far is due to Central Banks printing more dollars and reducing your purchasing power.
How To Get Into The bitcoin 1%?
If you believe that bitcoin is the future of money, then you will be interested in how much bitcoin you need to own to be in the top 1%. To answer this question we will analyse data for all the bitcoin wallets in the world at the time of writing and work out the magic number.
Data source: -addresses.html
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A Breakdown Of bitcoin Stats:
There are just over 22 million bitcoin wallets in the world.
Right now, there are 17,025,837 Bitcoins (maximum supply 21 million).
To be in the top 1% of bitcoin holders, you need to be in the top 220,027 bitcoin balances.
This means that to be part of the bitcoin 1% today, you need to own between 1 to 10 Bitcoins (worth between $10,000 to $100,000).
A single bitcoin would certainly get you into the top 3.21% richest bitcoin owners.
Buying a single bitcoin is a big investment. However, if bitcoin really is the future of money as so many prominent business people believe, then it’s a small price to pay.
Conclusion
It’s completely up to you to decide if you want to invest in bitcoin or not. Although bitcoin could be the money of the future, it is certainly not the money of today yet. It is still early days for bitcoin. Consider that there are only 22 million bitcoin wallets and in the world. If each bitcoin wallet is controlled by a single person then about 0.29% of the worlds population have one. This just goes to show the low levels of bitcoin adoption and that the ‘herd’ have certainly not entered the cryptocurrency space yet.
Only time will tell if Jack Dorsey, George Soros, The Rockerfella’s and The RothsChilds have made the right call on the future of bitcoin. Even if you are not a bitcoin believer yet, it’s certainly worth and finding out why so many prominent people are excited about them.
