Binance CEO Goes Full Reverse Psychology, Says High Demand Of Bitcoin In India Is Due To Ban
Bitcoin and other cryptocurrencies have been banned in India for quite some time now. However, to the surprise of many, it is trading at a $500 premium in India. Regarding this, the CEO of Binance CZ said:
The more it is "banned", the more people want it. https://t.co/weOVZGCaz3
— CZ Binance (@cz_binance) June 22, 2019
Well, India is a big market for Binance and CCZ knows it. 7.4% of all Binance visitors come from India, which makes it the 2nd highest population. There are over 5 million crypto investors, 12,500 blockchain developers(again the 2nd highest) ad by far the biggest crypto community in the world.
The demand for Bitcoin is in fact so high in India that P2P system on some local websites have completely shut down as there are no sellers in sight as most people have shifted crypto in paper wallets, hardware wallets or overseas exchanges.
Streisand Effect At Play
Named after the American singer and actress Barbra Streisand, the Streisand Effect describes how efforts to suppress a juicy piece of online information can backfire and end up making things worse for the would-be censor. It is an example of psychological reactance, wherein once people are aware that some information is being kept from them, their motivation to access and spread it is increased.
Laws are just one way governments might try to kill cryptocurrency. As with any technological force, you can’t rightly legislate it away. Bitcoin is as much a philosophical movement as it is a financial one.
Demand for bitcoin in India has been climbing steadily so far this year as seen in the graph below.
Some think that Facebook's planned cryptocurrency has given legitimacy to bitcoin and other decentralized cryptocurrencies, making it more difficult for India to justify a complete ban. If Facebook is going to come up with this, then other tech companies may follow suit. It is hard to believe the government will say that such big companies are also into a Ponzi scheme.