Anti-crypto speech that pricked cat Mochu and enticed him to talk about this grand Indian crypto tax!
Crypto Cat Mochu awakens hearing MP Sushil Kumar Modi's sprited anti crypto speech in the Indian Parliament
I suddenly awoke hearing Member of Parliament(MP), Mr Sushli Kumar Modi’s anti-crypto speech in Parliament as my mom was listening to it.
And, ever since then me and my best buddy BtcSolarCat wanted to talk about this steep 30% Indian Crypto Tax that’s passed in the Indian Parliament.
BtcSolarCat, aka, cat Garu says the crypto arena does not look green in India because of the grand harsh crypto taxation
Don’t laugh, we are Hive cats and for years my Mom has published Caturday posts on us, she’s even posted crypto posts with us doing the crypto talks, so we crypto cats definitely have eligibility to speak out on this expensive Indian crypto tax issue.
Generally, I sleep like a cat, peacefully but sometimes thinking about the poor Indian crypto investors keeps me awake. When this MP’s words played as I slept, I felt the voice of some hopeless devil playing. This was so from our crypto cat perspective, because I would call whatever he talked about crypto as blasphemy.
Thinking about the suffering of Indian crypto people because of the new harsh crypto tax policies keeps cat Mochu sleepless.
Listening to a spirited anti crypto speech after hearing out three sprited pro crypto speeches.
However, my Mom was entertained hearing out this person, she’s become thick skinned hearing all kinds of insulting allegations against crypto and she was expecting an entertaining anti-crypto speech from an MP in any case.
She already heard three MPs speak for pro-crypto policies and against this new 30% flat Indian crypto tax law which you can read about in her previous articles. All those MPs Ritesh Pandey, Pikani Misra, Priyanka Chaturvedi all raised some very sensible points.
Time to unravel reasons why this Indian MP supports the high crypto tax provision
Now, MP Mr Sushil Kumar Modi’s points raised in defence of this 30% flat Indian crypto tax law should be heard out because many of the crypto naysayers talk this way about crypto.
I will like a lawyer, sorry crypto cat lawyer, oppose all of MP Sushil Kumar’s points one by one.
Point by point summarization of MP Sushil Kumar’s anti-crypto speech
Image Source That's MP Sushil Kumar Modi giving out his anti crypto speech in Paliament!
You can watch MP Sushil Kumar’s speech here
Summary of MP Sushil Kumar’s speech defending India’s super harsh crypto tax
MP, Sushil Kumar Modi, congratulates the Indian Finance Minister(FM), Nirmala Sitaraman on making the 30% Indian crypto tax law. He urges the Finance Minister to consider raising the tax rate of crypto from 30% flat rate to 50%-55% , like it’s in other countries of Japan, Germany, Austria, France etc.
Crypto Cat Mochu’s response
OMG (Ohh my God!!), so MP Sushil Kumar not only agrees and supports this outrageous Indian crypto tax policy, he has the cheek to urge the Indian FM to actually further raise the Indian crypto tax. Right, let him continue the speech, I am sorry for interrupting.
Continuation of detailing MP Sushil Kumar Modi’s anti-crypto speech
MP Sushil Kumar declares that crypto has no intrinsic value since it’s not an asset, commodity, good or service and it’s not backed by any company.
Indian Stocks on the other hand have the backing of reputed companies like Tata, so it’s safe to invest, but crypto is not and so it is akin to gambling, horse trading, lottery!!
Crypto Cat Mochu’s response
Hmmm… ha…ha..ha, Crypto is gambling, horse trading, lottery and it’s not trustworthy because it’s not backed by a company.
Arey, sir ji, do you know crypto’s ethos is decentralisation, so obviously control of crypto and blockchain by one company is not how crypto functions. I will explain this later, now let’s hear more from MP Sushil Kumar, since he definitely has more than a mouthful of anti-crypto things to blurt out.
Continuation of detailing MP Sushil Kumar Modi’s anti-crypto speech
Further, MP Sushil Kumar branded crypto as a speculative bubble making a reference to the 17th century Tulip incident, where the value of the Tulip flower rose 200% times due to hype, and crashed impoverishing numerous investors.
He concluded that a Tulip flower is worth at least 1 Rupee but the value of crypto no one knows.
Crypto Cat Mochu’s response
This guy is too funny… Blockchain has so much utility and so much is done with that technology, how come it’s value can be compared to 1 rupee?
Government banks are collapsing with NPAs, does the MP know that there is no possibility of NPAs in DEFI?... and if crypto is a bubble why’s BTC surviving and outperforming every other asset class in the world, from commodity, gold etc since its inception.
BTC my dear MP sir is the best performing asset of the decade, and obviously it demands more respect, being a proven superior asset class!!
Right I will explain all this later, let’s hear what else this passionate anti-crypto spirited MP has to throw on crypto
Continuation of detailing MP Sushil Kumar’s anti-crypto speech
MP Sushil Kumar feels all crypto holders make extraordinary profits because he says the Compouded Annual Growth Rate(CACR) of BTC is 115%, BNB is 15% and ETH is 30%.
So, charging high crypto tax will not matter for the crypto community.
Crypto Cat Mochu’s response
So, this MP sir thinks people get rich overnight in crypto?. Well, if that’s the case everyone will get rich if they just buy these coins. Unfortunately, it’s not so, investors can make trading and investment mistakes and lose money even in crypto
Will explain this later in my turn after this gentleman finishes his speech.
Ohh MP Sushil Kumar Modi’s speech video ends here, you can watch MP Sushil Kumar’s speech at this link
Now it's time to oppose all these points raised by MP Sushil Kumar
Crypto cat Mochu's turn to dispute every anti-crypto point made by MP Sushil Kumar Modi who justifies high crypto taxes for Indian investors
The proposed Indian crypto tax is already super high, so raising it further is out of question!!
MP Sushil Kumar Modi justified the rightness of the raising crypto tax rate because countries like Japan, France, Germany and USA are levying higher taxes.
Well, what is there to argue like all other countries charge taxes only on capital gains according to income slab. So, you make small profits, it’s going to be tax free there.
Also in other countries investors can not only set off crypto losses from their crypto gains, they can set off crypto losses with gains they made on other asset classes. Here in India, investors can’t even set off their crypto losses with their crypto gains.
Plus, every other country has provisions for deductions and exemptions on crypto tax by subtracting the expenses traders have incurred as Blockchan fee, exchange fee, transfer fee, electricity fee, infrastructure and equipment costs.
This 30% flat crypto tax provision is far more than 30%, it has cess fees as well, and its charged on the whole sale of the crypto asset without providing for any deductions and exemptions and also without the provision for setting off your crypto losses.
Value of crypto is definitely more than that of tulip because it has utility
Crypto projects are well backed by teams led by reputed crypto veterans
Next, MP Sushil Kumar declared that crypto has no intrinsic value because it’s not backed by a reputed company and so investing in it is akin to lottery, gamling, horse trading, betting etc. I am merging that Tulip point he made too, which you have read earlier.
Well, many cryptos are backed by companies, although Bitcoin is not. However, most cryptos have a team, foundation, some have heads behind it.
Everyone knows, Polkadot is co-founded by Gavin Wood, Ethereum is head by developer teams but its lead still by its original co-founder Vitalik Buterin and Binance Smart Chain, is lead by our CZ, Changpeng Zhao.All these personalities are reputed, well known today and these are one of the top cryptos in market capitalisation.
How come, MP Sushil Kumar says crypto is not backed by any reputed entity?.
Bitcoin is superior because its not under control of any entity it’s decentralised
Yes, Bitcoin is not backed by any known entity because it’s decentralised, the vision of Bitcoin is not to be under the control of a company as that would lead to centralisation which is what crypto is against in the first place.
Blockchains aspire to be decentralised and be managed by coin stakeholders as much as possible
[Image Source](Image by Maicon Fonseca Zanco from Pixabay)
The general way how Blockchains, the technology that backs crypto (incase MP Sushil Kumar does not know) works is by not being in direct control of a company or small team. Large and diverse teams are node validators or otherwise miners of the Blockchain network. The network in turn is governed by crypto coin holders who are part of the community.
The whole point of all this is decentralisation and giving community members who are stakeholders of the blockchain protocol, have some say in the management of the protocol through Governance voting.
This way crypto holders stay involved in the Network and have a role to play. These crypto investors make efforts to stay a drift of what’s happening with the Blockchain platform they are stakeholders of.
So, crypto can’t be a speculative bubble, it's definitely way more than the value of Rs 1 of Tulip flower.
Since Blockchain has important use cases, the value of crypto is immense today
The Blockchain technology through which crypto comes is a beautiful science based on code, and most Blockchains have their code open source for community and others to verify, it’s so transparent.
There are innumerable use cases of Blockchain - from DEFI, supply chain tracking, NFTs, gaming to name a few.
Yes, NPAs or loan defaults that trusted banks are not able to eliminate is eliminated in DEFI, but I won’t explain that here. Tokenisation of assets like real estate art, music and even stocks are making things better for people around the world.
The CBDC the Indian Government plans to introduce will be powered by Blockchain, so is CBDC's value worthless?
Also the Digital currency or CBDC that the Indian Government plans to introduce will make use of Blockchain technology which they are planning to use to trace and track every digital rupee transaction just like China is doing with Digital Yuan.
Therefore, however, not worthy the intention of the Government in this may be, yet they will be using Blockchain technology so definitely can’t say crypto has no value, since the underlying value of crypto is determined by the use case of the Blockchain technology it is a part of.
All crypto investors are not super rich, a minority of them yes, not the majority
Well, this is ridiculous, that MP Sushil Kumar Modi feels the high crypto tax is justified because crypto investors are making extraordinary profits.
So does he mean that it’s easy to make money in crypto because it’s not. It can be very easy to lose money on crypto, it depends on when you invest, whether you bought crypto at a low price and are able to hodl and sell it later when the price of crypto is higher. Some people make a lot of money in crypto if they trade well, lot of us have not made that kind of money.
Wealth creation is a long time and slow process, compounded by the fact that it takes times and experience to be a investor who is making profits making all the right moves which is -:
Buying cryptos that are fundamentally sound after understanding it , then selling them at the right time to make profits. It’s not easy, takes, practice, patience, practical insights gained through experience trading cryptos etc!!
Also small investors who invest small amounts of money in crypto, don’t make that much profits, they may make small profits, which they withdraw to spend for their life's expenses.
The sensible thing to do here is levy tax on capital gains considering the income slab, so small crypto investors like my Mother are not harassed by this tax unnecessarily, makes no sense.
So, here I have explained why MP Sushil Kumar Modi’s anti-crypto speech supporting high crypto taxes does not hold merit.
In that note, good bye everyone, I will go have my cat nap.
