What I understood according to the news is that Indias Ruling Party spokesperson, Pradeep Bhandari thinks India should have bitcoin reserve as United States and other countries are having itwhile some other countries are planning to have it also. He thinks it will mean a lot for India for economic growth.
How will the reserve in bitcoin help the economy? It seems to me, on the contrary, it will hinder. Let me explain.
The money that India will use to buy bitcoin could be used for the real development of the country's economy, for example, in the form of creating some kind of production that will create jobs, produce goods and generate profit. But in the case of investing in bitcoin, the N-th amount of money will be "frozen" and the real economy of the country will simply not receive this money for development, which will reduce the level of economic development.
In the long term, after a profitable sale of bitcoin, India will be able to make a profit, but this will have nothing to do with economic growth.
What I think about this is that as more countries are making bitcoin a reserve in the countries, other countries will not want to lag lag behind and this will make them propose bitcoin reserve.
This is already becoming quite obvious. This can be considered the birth of a new trend.
