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Building a Responsible Cyber Society…Since 1998

I draw the attention of the honourable Union Ministers Mr Piyush Goyal and Mr R .K Singh, responsible for the energy sector in the country on the need to take steps to reduce the adverse impact Crypto Currencies are having on the energy sector on a global scale.

It is a pet idea of Mr Modi’s Government that we need to encourage transport vehicles which would use electricity and renewable energy instead of the conventional Coal and Thermal energy. This is being countered by the proliferation of Bitcoins and Crypto Currencies and needs to be checked.

I would like both the Ministers responsible for Energy related activities,  to reflect for some time the havoc that the Crypto Currency system is creating in the whole world in terms of the energy consumption and whether the World can afford it.

We often discuss the global warming and Carbon footprint and design policies to correct the environmental imbalance. But have we ever paused to consider the damage we are inflicting on the global energy environment by not taking action on Crypto Currencies?

Afterall, Crypto currencies like Bitcoin have no economic value to the society other than being the Currency of the Criminals, created by Criminals posing as technologists, for the benefit of the Criminals. The society has no reason to pay a price to make the life of Criminals comfortable and profitable. But that is what the policy makers are doing now.

It is unfortunate that instead of India under Modi taking a lead in preventing the damage to the energy environment being created by Bitcoins and its 1370 cousins (as of 31st December 2017) in the energy sector, we are debating whether India should legalize Bitcoins.

According to one estimate, (Refer digieconomist.bet)the current estimate of energy

consumption by the Bitcoin network isaround 38.21 Twh per year and it has grown from around 10 Twh to this level in the last one year.

This appears to be only refering to the Bitcoin network and if we add the other Crypto currencies, it would be more than double this level.

If this is compared with the total energy consumption in different countries, it appears that Bitcoin network consumes nearly 10% to 15% of the consumption of most advanced countries.

Compared to India whose estimated energy consumption is estimated to be about 1238 TWh, Bitcoin industry consumes around 3% of our consumption and the entire Crypto currency industry should be consuming around 6% of the electricity consumption of the 1.2 billion population. The consumption of Electricity by the Bitcoin industry is said to be higher than that of the whole of Denmark or Nigeria.

If this is not checked, the energy managers of the world will be considered as fools. There is no justification for wasting the precious energy resource of the globe to promote a Currency network for the criminals .

Since China is one of the biggest Bitcoin mining country and it uses Coal based power, it is also said that the Bitcoin industry contributes adversely to the Carbon footprint in the globe as well.

Bitcoin’s villany in  being a “Perfect Black Money” and “Currency for funding Crimes and Terror” is well known. To this we need to add the adverse impact that the Crypto currency industry leaves on the Power consumption for unproductive and negative purposes and the Carbon foot print.

All this indicates that if the Government of India does not immediately move to ban Bitcoin and discourage use of all Crypto Currencies in India, it will be doing a disservice to the global community.

Many people are unable to understand the difference between Crypto Currencies and the Digital Currencies which represent the money in the Bank withdrawable by electronic means. Such people try to create a misconception that opposition to Crypto currency is opposition to Mr Modi’s Digital India Concept. I am sure that you understand the difference and you should educate other members in the Government about why Crypto Currencies is bad for India and we need to ban it forthwith.

Government is also often mislead with the fact that some countries like Japan have recognized Bitcoins and we should also follow. This is not a valid argument since the needs of different countries are different. We know that there are countries which have legalized sale of narcotics and illegal arms. It may be good for them. But we cannot follow them.

We donot know what is the stock of Crypto currencies held by Japan and China. It could be huge and they would like it to be used by converting it into dollars. USA also has a large stock in Government control. China has been very clever and has banned Bitcoin exchanges and prevented the Citizens to trade in Bitcoins but the Government itself is said to be continuing the mining data centers which run like an industry. It is also possible that China must have now shifted its attention on mining other Crypto currencies such as Ripple or Ethereum since it is more profitable than mining Bitcoins and hence it is playing a double game of banning the exchanges without stopping the mining activities.Those who already have a significant share of Bitcoins would definitely want to legalize Bitcoins not only for their countries internal use but also to use it in international payments.

We must resist their attempts since it would be detrimental to our interest.

I therefore suggest that India should take a global leadership position to oppose Bitcoins and Private Crypto Currencies (Not the Government backed Crypto Currencies which may be introduced by Russis or other countries in the coming days), starting with an immediate ban on Bitcoins in India.

In India I am sure that those who have already built up a stock of Bitcoins which unfortunately includes persons like Mr Amitabh Bachchan could be preventing the Government from taking a decision to ban Bitcoins. We need to take a tough stand on this and cannot allow those who converted white money to black by investing in Bitcoins to profit from their activities even if it was done innocently.

We need to show the same resolve that we showed during the demonetization of high denomination notes and now demonetize Crypto currencies.

I request Mr Piyush Goyal and R.K. Singh to move the issue with the Finance Minister as the delay in the decision is hurting the clean image of Mr Modi’s Government.

Naavi

Whatever was the technological urge for Mr Satoshi in  creating the block chain technology and Bitcoin is a thing of the past. The present status of Bitcoin is as a currency of the criminals. Many of my friends may hate me for saying this but I would like to say Bitcoin today is a currency of the criminals, by the criminals and for the criminals. It is not for honest individuals. It could have been at one time..but not today.

All Bitcoin holders are not criminals… but they could be

This is not to say that all those persons who possess Bitcoins today are criminals. But Bitcoin as a commodity and used as a currency is a product meant for criminals. If honest persons want to also use it, it is their choice.

(Ed: Reminds me of a Kannada proverb: “ಈಚಲ ಮರದ ಕೆಳಗೆ ಕುಳಿತು ಮಜ್ಜಿಗೆ ಕುಡಿದಂತೆ ” meaning “Like sitting under a palm tree and drinking butter milk” )

Bitcoin is the Perfect Black Money

There is a wide support for Bitcoins in India and the support is not surprising at all considering that India is a leading country in the world when it comes to corruption and Black money.

Bitcoin is a “Perfect Black Money” because it is anonymous and transferable across the globe at the click of a button. Just as an e-mail flies across, lakhs of rupees can fly across from India to another country either to one’s own account or to somebody elses’s account.

A Bitcoin wallet which can hold multiple Bitcoin addresses or a simple Bitcoin address for a single transaction can be created as easy as signing up for an e-mail account without any KYC formalities. Money can be transferred into this wallet or address by buying Bitcoins in cash or through bank account or through cards or through western Union or Paypal. If money is transferred through Bank account then there may be a KYC and identification. But there are other means that the black money people know which can easily convert their black money into Bitcoins.

It is therefore correct to call Bitcoin as the “Perfect Black Money”.

Bitcoin is also instantly fungible into 1317 (as of Dec 31, 2017)  other crypto currencies at a click of a button and also convertible into a few legit currencies in the world.

Hence there is no doubt that many Indians including many in the Government bureaucracy and in regulatory agencies are very much in favour of Bitcoins being legally recognized so that all their ill gotten wealth can be held in the “benami numbered account” called  Bitcoin addresses or wallets. Each transaction can be in a different Bitcoin address and for much less than 1 bitcoin (1 bitcoin can be  reduced into units of bitcoins starting from a Satoshi  which is 1 bitcoin divided by 100 million).

As it is, Bitcoin addresses are anonymous since they are public keys associated with private keys of a crypto key pair and the owner holds the private key confidentially. Whoever knows the private key is the owner of the bitcoin. If one wants to transfer the bitcoin, to another, he can do so simply by transferring the bitcoin in his control to another bitcoin address or wallet whose private key is known only to the transferee.

What more do you want to call Bitcoin a “Perfect Black Money” and a darling of all those who support black money and corruption in India?

All this is being explained here not to make people knowledgeable so that they can adopt to the use of Bitcoins to hide their black money. if this happens, it would be a tragedy.

Have you been already poisoned?

But the reason I am putting out this post in public is to tell our decision makers in the Government of India including Mr Modi, Mr Amit Shah, Mr Arun Jaitely and others that when you hear some experts saying that Bitcoin is great, Block chain technology is even greater, that country and this country has legalized Bitcoins etc and try to coax you into believing that all those who are opposing Bitcoins are either technology sceptics or jealous of others who are making money etc, please donot believe them. Many of them might have already asked you to have a “Free Trial of Bitcoin technology” and created an account for you and loaded some bitcoins in your account already. Remember that this is “Poison” and if you touch it, you will be consumed by it.

If you are still not touched by this poison, please come out boldly and confirm it to the citizens of India. Otherwise we will presume that you are all already posioned with Bitcoin.

Why Bitcoin is a currency of the Criminals, By the criminals and for the Criminals?

Bitcoin was created by the criminal syndicates of the dark web who sell crime ware, viruses, conduct ransomware attacks, extort money, sell drugs and illegal arms both offline and online. They obviously donot want any central authority to know of their transactions and hence prefer to deal with Bitcoins. Mr Satoshi who remains anonymous till date could be the biggest crook of all and posing himself as a technologist created an infrastructure for criminal funding.

The entire eco system of Block chains was created to support criminal activity and along with the spread of cyber crimes, the popularity of Bitcoins and other crypto currencies as well as the underlying technology respectably called the innovative “Block Chain” grew. Blockchain is the alter ego of Bitcoins and many believe that if Block chain technology is pushed into the main stream then Bitcoins will automatically survive and grow.

Bitcoin itself is a creation of the software and there is no physical currency or backing of a reserve or a Government promise. But it is being traded at a value of Rs 13-15 lakhs per bitcoins. Now a “Derivative of the Bitcoin” is being created which is another level of imaginary “virtualization of the virtual” with a value proposition for the gullible to pick up. It is a “bubble of bubbles” in another perspective and could burst along with the Bitcoin bubble one day ..unless the world is full of people who want to live in the dream of bubbles. There are many such people around now and they are their tribe may even grow further.

We also note that already Bitcoin block chain has hard forked once and it is anticipated that a third fork is likely to form soon. What it means to the bitcoin value, only future will unveil.

Those who are promoting Bitcoins in this uncertain environment are only trying to fool others and make money. Hence the system is full of criminals.

It is therefore not surprising that Cyber Criminals in the dark web transact only with Bitcoins (or its fungible new versions like Monero or Ripple etc, which may be more secretive than Bitcoins and better for Black money holders).

Since there are only Criminals who are technologically savvy who are working around these Crypto currencies, they also indulge in ICO scams, hacking int Crypto currency exchanges, creating malwares for mining bitcoin/crypto currencies and embedding it into softwares, apps, IoT applications etc so that all of us will use our data and devices to work as slaves and mine cryptocurrencies silently for the criminals as part of the Crypto botnet.

Is Government of India unaware of this?

I would not believe that Mr Arun Jaitely or the Finance Secretary or the SEBI Chairman or the RBI Governor is unaware of the fact that Bitcoin is a “Perfect Black Money” and hence it is great for politicians and other black money holders.

But Government strangely says that “They are Observing”… Observing what?.. the speculation where 4-5 lakh members of the public have already invested in bitcoins through the exchanges? We can  note that these are innocent persons who have given their KYC and received notices.. this does not include those who have opened Bitcoin wallet account with agencies outside India including in Singapore which is developing into a hub of Bitcoin exchanges even for Indian entrepreneurs.

What the Finance Ministry is doing in being a silent supporter of speculation is absolutely unacceptable. They are deliberately not taking action to ban the use of Bitcoins. Chairman of SEBI is publicly in favour of Bitcoins. Ministry gives out conflicting statements now and then so that speculation thrives. RBI appears to be against Bitcoins but seems to have been kept silent by the Finance Ministry.

I want Mr Modi  to show his commitment to removal of Black money in India by immediately taking up a total ban on all Privately created Crypto currencies like Bitcoin, Ripple, Etherium, Monero etc…

Mr Amit Shah may kindly note

If Modi Government does not ban Bitcoins and Crypto currencies, it will appear as if the Government has developed a cold feet in its fight against Black money and corruption. It will lose the moral authority to say that they have done everything to root out Black money.

This  matter may come to haunt BJP in its next election in Karnataka where they have to explain why BJP was interested in demonetization of physical currencies only and are not willing to demonetize the crypto currencies?….

Security Issues

Apart from the issue of Black money creation, recognition of Bitcoins in India will bring in a market capitalization of over Rs 36 lakh crores of money into the floating currency in India and could completely upset the economic stability of the country.

Most of this Rs 36 lakh crores would be in the control of our enemies including China and ISI and will be used to fund terrorists in India. It will be impossible to trace the ownership and transactions of these currencies and our law enforcement persons will be looking like bakras when they have to prove “Money Trail” in Courts in corruption and criminal cases.

Criminals will go scot-free and Terrorists and Naxalites will be able to get funds easily for their operations to break India.

This is the future of India if Bitcoins are not eliminated from the Indian scenario forthwith.

History will Judge Mr Arun Jaitely

Mr Arun Jaitely will go down in history as the person who by his inaction to ban Bitcoin caused the country to collapse.

Will he or Will he not? …ban Bitcoins and all Crypto currencies…. now or when? will be the question.

Dear Finance Minsiter, Do you have a response?

Easy Way to ban Bitcoins and Crypto Currencies

If Crypto currencies are declared as “Benami Properties” since it is held in anonymous identity, dealing with them becomes illegal ab-initio.

Also ITA 2008 provides certain encryption guidelines which the Currencies violate and hence they are already not legal.

All so called Bitcoin exchanges in India are operating without either RBI or SEBI clearance whether they follow KYC or not. They are illegal operations ab-initio.

Projecting anything as a “Currency” violates the RBI Act and is punishable. Marketing of Bitcoins  as a “Currency”, is therefore illegal per se.

We only need the Government to use these existing provisions of law and these Crypto currencies can be eliminated. …

Where there is a will, there is a way. But Government appears to be only trying to find a way out for the criminals rather than punish them in the interest of the nation. Kindly prove me wrong.

Our fight against Bitcoin continues….. 

PS: It is surprising that the media and even Mr Subramanya Swamy is silent on Bitcoins. We can understand the reluctance of the media but why Mr Swamy is silent?.. We await his clarification.

Naavi

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PS: It is ironic that Google Ads may be serving ads on Bitcoin on this site even as you are reading. I donot endorse those ads.

Naavi