Has Cryptocurrency Become Every Indian's Dream Investment?

[Micheal Jorden]

Rich rewards often entail great risks, and the same holds true with the highly volatile cryptocurrency market. The uncertainties in 2020 globally generated a heightened interest of masses and large institutional investors in trading cryptocurrencies, a new-age asset class. Increasing digitization trouver un emploi, flexible regulatory framework, and supreme court lifting ban on banks working with crypto-based companies have parked investments in excess of 10 million Indians within the last year. Several major global cryptocurrency exchanges are actively scouting the Indian crypto market, that has been showing a sustained surge in daily trading volume over the past year amid a big drop in prices as numerous investors viewed value buying. While the cryptocurrency frenzy continues, many new cryptocurrency exchanges attended up in the country that allows buying, selling, and trading by offering functionality through user-friendly applications. WazirX, India's biggest cryptocurrency trading platform doubled its users in one million to two million between January and March 2021.

What's Driving World's Largest Crypto Exchanges to the Indian market?
In 2019, the world's largest cryptocurrency exchange by trade volume, Binance acquired the Indian trade platform, WazirX. Another crypto launch, Coin DCX secured investment from Seychelles-based BitMEX and San-Francisco based-giant Coinbase. The crypto and blockchain start-ups in India have attracted investment of USD99.7 million by June 15, 2021, which totaled around USD95.4 million in 2020. Within the last five years, global investment in the Indian crypto market has increased by way of a whopping 1487%.

Despite India's unclear policy, global investors are making huge bets on the country's digital coin ecosystem as a result of number of factors such as for example

• Tech-savvy Indian Population
The predominant population of 1.39 billion are young (median age between 28 and 29 years) and tech-savvy. Whilst the older generation still prefers to invest in gold, property, patents, or equities, the newer ones are embracing the high-risk cryptocurrency exchanges because they are more adaptable to them. India ranks 11th on Chainalysis's 2020 report listing for global adoption of crypto, which shows the excitement about crypto one of the Indian population. Nor does the less-than-friendly attitude of the federal government towards crypto or rumors swirling round the crypto are able to shake the confidence of the youth population in the digital coin market.

India offers the lowest priced internet in the world, where one gigabyte of mobile data costs around $0.26 while the global average is $8.53. So, almost half the billion users are benefiting from affordable internet access, which enhances India's potential to become among the largest crypto economies in the world. According to SimilarWeb, the country could be the second-largest source of web traffic to peer-to-peer bitcoin trading platform, Paxful. Whilst the mainstream economy is still struggling from the "pandemic effect", cryptocurrency is gaining momentum in the country as it supplies the young generation a fresh and fast means of earning money.

It's safe to express that cryptocurrency might become Indian millennials what gold is for his or her parents!

• Rise of Fintech Start ups
The cryptocurrency craze generated the emergence of multiple trading platforms such as for example WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and many others. These cryptocurrency exchange platforms are highly secured, accessible across various platforms, and allow instant transactions, providing an agreeable interface for crypto enthusiasts to purchase, sell, or trade digital assets limitlessly. A number of these platforms accept INR for purchases and trading fees as low as 0.1% so simple, fast, and secure platforms present a lucrative chance for both first-time investors and local traders.

WazirX is among the leading cryptocurrency exchange platforms with over 900,000 users that gives customers with peer-to-peer transaction capabilities. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is great for beginners as well as daily doers. Unocoin is among the oldest cryptocurrency exchange platforms in India that take into account over a million traders through mobile applications. CoinDCX provides users with 100+ cryptocurrencies as an option to produce exchanges and even provides investors with insurance to cover losses in the event of a protection breach. So, global investors are eyeing the plethora of cryptocurrency exchange platforms in India to make the most of the emerging market.

• Mixed Government Response
The legislative bill regarding a ban against a digital currency that will criminalize anyone engaged in possession, issuance, mining, trading, and transferring crypto assets may get enacted into law. However, Finance and Corporate Affair Minister Nirmala Sitharaman eased some investor's concerns saying that the federal government has not planned to completely bar cryptocurrency use. In a statement fond of a number one English newspaper, Deccan Herald, the Finance Minister said, "From our side, we are very clear that individuals are not shutting all options. We allows certain windows for people to accomplish experiments on the blockchain, bitcoins, or cryptocurrency." It's evident that the federal government is still scrutinizing the national security risks posed by cryptocurrencies before deciding on putting a complete ban.

In March 2020, the Supreme court overturned the central bank's decision to ban financial institutions from dealing in cryptocurrencies, which prompted investors to pile to the cryptocurrency market. Despite the lingering fear of ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from the year ago. One of India's oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The total level of Zebpay daily of Feb 2021 got comparable to the amount generated in the complete month of Feb 2020. Addressing the cryptocurrency scenario in India, the Finance Minister said in a CNBC-TV18 interview, "I can just only offer you this clue that individuals are not closing our minds, we are considering ways in which experiments can occur in the digital world and cryptocurrency."