Has Cryptocurrency Become Every Indian’s Dream Investment?
In addition to appealing rewards, the cryptocurrency market carries significant risks due to its extreme volatility. Trading cryptocurrencies, a cutting-edge asset class, piqued the interest of large institutional and mass investors in 2020 due to global uncertainty. As a result of increasing digitization, a flexible regulatory framework, and the Supreme Court’s lifting of the ban on banks dealing with crypto-based businesses, more than 10 million Indians have invested in crypto-based businesses in the past year. The Indian digital currency market has seen a supported expansion in everyday exchanging volume throughout the last year, regardless of a critical drop in costs as numerous financial backers hoped to esteem purchase. Thus, a few significant worldwide digital currency trades are effectively exploring the market. In response to the ongoing cryptocurrency mania, numerous brand-new exchanges have sprouted across the nation. These exchanges let users buy, sell, and trade cryptocurrencies and provide functionality via user-friendly applications. Among January and Walk 2021, the biggest cryptographic money exchanging stage India, WazirX, saw an ascent in its client base from 1,000,000 to 2,000,000.
What brought the world’s largest cryptocurrency exchanges to India?
Binance acquired Indian exchange stage WazirX in 2019, making it the world’s largest cryptographic money trade in terms of professional career volume. Coin DCX received speculation from Seychelles-based BitMEX and San Francisco-based monster Coinbase. In 2020, investments totaling approximately USD95.4 million had been made in India’s crypto and blockchain startups by June 15, 2021. Over the past five years, global investment in the Indian cryptocurrency market has increased by a staggering 1487 percent.
There are a number of reasons why global investors are betting heavily on India’s digital coin ecosystem, including: The majority of India’s 1.39 billion inhabitants are young and tech-savvy, with the median age between 28 and 29. While the older generation prefers to invest in gold, land, licenses, or values, the younger generation is embracing high-risk digital currency trades because they are more adaptable to them. India’s 11th-place ranking in Chainalysis’s 2020 report on global adoption of cryptocurrencies exemplifies the enthusiasm of the Indian populace for the technology. The government’s negative attitude toward crypto and crypto-related rumors cannot shake the youth population’s faith in the digital coin market.
In comparison to the global average of $8.53, the cost of one gigabyte of mobile data in India is approximately $0.26. India’s internet is now the most affordable in the world as a result. As a result, nearly half a billion people can afford internet access, increasing India’s potential to become one of the largest crypto economies in the world. According to SimilarWeb, the nation is the second-largest source of Paxful, a peer-to-peer bitcoin trading platform. Despite the fact that the mainstream economy continues to be impacted by the “pandemic effect,” cryptocurrencies are gaining popularity in the nation due to the fact that they provide young people with a novel and quick means of earning money.
For Indian millennials, cryptocurrency has every chance of becoming the same as gold was for their parents!
• The Rise of Fintech Startups The rise of numerous trading platforms, such as WazirX, CoinSwitch, CoinDCX, ZebPay, and Unocoin, was brought about by the fad surrounding cryptocurrencies. Cryptocurrency enthusiasts can buy, sell, or trade digital assets indefinitely through these cryptocurrency exchange platforms’ user-friendly interfaces. They are extremely safe, available on a variety of platforms, and permit instant transactions. Because many of these platforms accept INR for purchases and have trading fees as low as 1%, they provide a lucrative opportunity for both first-time investors and local traders.
WazirX is one of the most popular cryptocurrency exchange platforms that lets customers conduct peer-to-peer transactions. It has more than 900,000 users. For novices and regular users alike, CoinSwitch Kuber is the best Indian cryptocurrency exchange platform. One of India’s oldest cryptocurrency exchange platforms, Unocoin’s mobile apps are used by over one million traders. CoinDCX gives investors insurance to cover losses in the event of a security breach and lets users exchange more than 100 cryptocurrencies. International investors are therefore keeping an eye on the numerous cryptocurrency exchange platforms in India in order to profit from the expanding market.
• Mixed Government Response It’s possible that a bill will be enacted into law that makes it illegal to own, issue, mine, trade, or transfer crypto assets. Virtual currencies would then be illegal. However, Money and Corporate Issue Priest Nirmala Sitharaman facilitated the interests of a few financial backers by stating that the government has not intended to completely prohibit the use of digital currencies. In a statement to Deccan Herald, a prominent English publication, the Finance Minister stated, “We are very clear from our side that we are not shutting all options.” During specific window periods, experiments on the blockchain, bitcoins, or cryptocurrency will be possible. It is evident that the government is still evaluating the threats to national security posed by cryptocurrencies prior to deciding to implement a complete ban.
After the Supreme Court overturned the central bank’s decision in March 2020 to prohibit financial institutions from dealing in cryptocurrencies, investors began pouring into the cryptocurrency market. Despite the anticipation of a boycott, exchange volumes continued to rise, and client enrollment and cash inflows at a nearby crypto-trade increased by 30 percent from a year earlier. Unocoin, one of India’s oldest exchanges, added 20,000 new users in January and February 2021. Zebpay generated a daily volume that was comparable to that of the entire month of February 2020 in February 2021. In an interview with CNBC-TV18, the Finance Minister spoke about India’s cryptocurrency situation. “I can only give you this clue that we are not closing our minds. We are looking at ways in which experiments can happen in the digital world and cryptocurrency,” he said.
Until the government bans “private” cryptocurrency and announces sovereign digital currency, investors and others with a stake in the digital coin ecosystem want to make the most of the expanding ecosystem.
Is India moving toward digital money’s monetary inclusion?
The steadily increasing number of female investors and traders has led to more gender neutrality in the new digital investment methods as a result of the predominant male population’s involvement in the cryptocurrency market, which was once referred to as a “Boys club.” Women in India used to stick with traditional investments, but now they’re trying something new by investing in cryptocurrency. After the Supreme Court clarified the legality of “virtual currency,” CoinSwitch, an Indian cryptocurrency platform, saw an exponential 1000% increase in the number of women who used the platform. In spite of the fact that very few crypto investors are women, there is a lot of competition for them in the Indian market. Women can diversify their investments by investing in high-return assets like cryptocurrencies because they tend to save more money than men do. Women are also more successful investors because they are more analytical and better at assessing risks.
Increasing the adoption of cryptocurrencies by mainstream institutions Before the economic crisis even started, SARS-Covid 19’s uncertainty and panic caused a liquidity crisis. Many investors converted their holdings into cash to protect their finances, which lowered the value of bitcoin and other altcoins. However, crypto managed to maintain its position as the asset class with the best performance for 2020 despite a significant crash. People have an increased desire for advanced monetary standards as a result of the framework’s growing weakness and their loss of confidence in the national bank’s strategies and cash in its ongoing plan, which led to the return of digital money. Due to cryptocurrency’s impressive performance during the global financial crisis, the uptrend has increased interest in the virtual currency market in Asia and the rest of the world.
Additionally, digital payment gateways like PayPal have demonstrated their support for cryptocurrencies, which provide consumers with the ability to hold, purchase, or sell virtual assets in order to satisfy society’s demand for dependable and convenient transaction solutions. Tesla’s CEO, Elon Musk, recently announced that the electric company would invest USD1.5 billion in the cryptocurrency market and accept bitcoin from customers. Bitcoin’s international price soared from USD40,000 to USD48,000 in just two days as a result. Cryptocurrencies have also been made available as a means of payment by Visa and Mastercard, two of the most widely used payment platforms in the world. While Mastercard plans to begin trading cryptocurrencies sometime in 2021, Visa has already announced that it will allow stable coin exchanges on the Ethereum blockchain.
What does the Indian cryptographic money advertise resemble from now on?
The Indian cryptocurrency market is not spared by the terrible crypto crashes. Despite the massive investments made by counterparts around the world, local investors are still avoiding crypto investments due to the high volatility of the market and uncertainty regarding the digital coin ecosystem’s legality in India. Despite the explosive growth of the cryptographic money market over the past year, Indians only hold less than one percent of the world’s bitcoin, which is a significant setback for the Indian economy. The Indian government will set up a new panel to look into the possibility of regulating digital currencies in the country. The panel will focus on blockchain technology and ideas for improving it.
In order to improve transaction transparency, a variety of industries have realized that blockchain technology can provide a secure and immutable infrastructure. For a nation with more than 15 million crypto adopters, the new recommendation from the committee could be very important in determining the future of cryptocurrency in India. Notwithstanding, partners accept that India will turn into a key part in the crypto and blockchain market because of its specialized and monetary strength. Digital currency adoption may rise as the cryptocurrency gradually gains mainstream acceptance.
The cryptocurrency market in India is also being fueled by the growing use of blockchain technology and digital currency. Another TechSci Research report, “India Cryptocurrency Market By Offering (Hardware & Software), By Process (Mining & Transaction), By Type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, Others), By End User (Banking, Real Estate, Stock Market & Virtual Currency), By Region, Forecast & Opportunities, 20