What if India or China declares bitcoin as legal tender in the country ? What impact will it have on the bitcoin prices and other crypto coins ?
Those are the two most populated countries of the world and they both account for over 3% of human population. If either of them legalizes Bitcoin, it will mean that the percentage of people using Bitcoin would have grown by a significant number. The will also be a big motivation for other countries to consider doing same because these two countries are big economies.
The price of Bitcoin will definitely surge when any of these countries decide to legalize Bitcoin due to the pressure of demand.
India has been legalizing bitcoin for a long time and there are some rumors that they are planning to ban it to focus on CBDC development. Meanwhile, China has banned bitcoin since 2017 until now.
Everyone is optimistic and believes that if these 2 countries legalize bitcoin it will have a big impact on bitcoin price but I don't think so. I mean we should take into account factors like each country's GDP as well as their regulations towards bitcoin. A populous country with low per capita income and harsh policies will not bring too many big benefits, and that is exactly what the Indian government is doing with the cryptocurrency industry. They legalized it but taxed it high and the average income in India is not high so that's why we don't see much impact from them on bitcoin.
I rate China higher because they are the second largest economy, but if they legalize and enact strict regulations, I will not be optimistic either.