Early in November, India

Who Uses Bitcoin in India?

So who uses Bitcoin in India? According to

In

Ray also noted that roughly 20 percent of Unocoin's users are freelancers who use Bitcoin as a cheaper alternative to PayPal. Ray noted that Bitcoin currently offers what are essentially negative fees for freelancers based in India because of the relatively higher price bitcoins sell for in the country.

During the Bitcoin Uncensored interview, Ray stressed that his estimates should be taken with a grain of salt, as the very nature of Bitcoin makes it difficult to get real user data.

Trading Volume Has More Than Doubled Since the Ban

So what's happened since India got rid of the 500 and 1000 rupee banknotes? For starters, Ray told

An increase in trading volume

It's important to remember that LocalBitcoins trading volume is a rather rough metric because many traders continue exchanging bitcoins off of the site after finding someone they trust.

Bitcoin currently trades at a high premium in India due to capital controls in India, which make it difficult for Bitcoin companies, such as Unocoin, to settle against foreign exchanges; however, Unocoin is currently working on a method to bring more bitcoin liquidity into the Indian market.

In a

Larger Effects May Be Seen Over the Long Term

While there's been a nice uptick in Bitcoin activity in India over the past month or so, Ray believes the larger effects of India's removal of the 500 and 1000 rupee banknotes from circulation will be seen over the long term.

"Right now, people are being very careful with their spending," said Ray. "We think it will be long term because with all of the restrictions, the push towards digital money, and the amount of new money that's entering the banking system, some of that will find a home in bitcoin."