Has got Cryptocurrency End up Every last Indian’s Vision Financial commitment?
Rich rewards often entail great risks, and the same is true with the highly volatile cryptocurrency market. The uncertainties in 2020 globally resulted in a heightened interest of masses and large institutional investors in trading cryptocurrencies, a new-age asset class. Increasing digitization, flexible regulatory framework, and supreme court lifting ban on banks dealing with crypto-based companies have parked investments greater than 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 in the last year amid a big drop in prices as much investors viewed value buying. Because the cryptocurrency frenzy continues, many new cryptocurrency exchanges came up in the united kingdom that permits buying, selling, and trading by offering functionality through user-friendly applications. WazirX, India’s biggest cryptocurrency trading platform doubled its users from 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 because of variety of factors such as
Tech-savvy Indian Population
The predominant population of 1.39 billion are young (median age between 28 and 29 years) and tech-savvy. While the older generation still prefers to invest in gold, real estate, 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 across the crypto can shake the confidence of the youth population in the digital coin market.
India offers the cheapest internet on the planet, 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 access to the internet, which enhances India’s potential to become one of the largest crypto economies in the world. According to SimilarWeb, the united states is the second-largest source of web traffic to peer-to-peer bitcoin trading platform, Paxful. While the mainstream economy continues to be struggling from the CashTab Ecash “pandemic effect”, cryptocurrency is gaining momentum in the united kingdom since it supplies the young generation a fresh and fast method 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 resulted in the emergence of multiple trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and many others. These cryptocurrency exchange platforms are highly secured, accessible across various platforms, and allow instant transactions, providing a friendly interface for crypto enthusiasts to get, sell, or trade digital assets limitlessly. Many of these platforms accept INR for purchases and trading fees as little as 0.1% so simple, fast, and secure platforms present a lucrative chance for both first-time investors and local traders.
WazirX is one of the leading cryptocurrency exchange platforms with over 900,000 users that gives customers with peer-to-peer transaction capabilities. CoinSwitch Kuber provides the most effective cryptocurrency exchange platform for Indians and is ideal for beginners as well as daily doers. Unocoin is one of the oldest cryptocurrency exchange platforms in India that account for 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 case there is a security 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 virtual currency that could criminalize anyone engaged in possession, issuance, mining, trading, and transferring crypto assets might 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 totally bar cryptocurrency use. In a record given to a leading English newspaper, Deccan Herald, the Finance Minister said, “From our side, we are specific that we are not shutting all options. We allows certain windows for individuals to accomplish experiments on the blockchain, bitcoins, or cryptocurrency.” It’s evident that the federal government continues to be scrutinizing the national security risks posed by cryptocurrencies before selecting 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 into the cryptocurrency market. Despite the lingering concern with ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from the year ago. Among India’s oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The full total level of Zebpay per day of Feb 2021 got comparable to the quantity generated in the whole month of Feb 2020. Addressing the cryptocurrency scenario in India, the Finance Minister said in a CNBC-TV18 interview, “I can only just give you this clue that we are not closing our minds, we are considering ways by which experiments can occur in the digital world and cryptocurrency.”
Rather than sitting on the side-lines, investors and stakeholders want to really make the best of proliferating the digital coin ecosystem until the government introduces the ban on “private” cryptocurrency and announced sovereign digital currency.
Is India Heading Towards Financial Inclusivity with Cryptocurrency?
Once considered a “Boys club” due to predominant male population engagement in the cryptocurrency market, the steadily rising quantity of women investors and traders has resulted in more gender neutrality in the newest and digital kind of investment methods. Earlier, women used to stick to traditional investments however now they’re becoming risk-takers and venturing into the crypto space in India. After the apex court clarified the legality of “virtual currency”, the Indian cryptocurrency platform, CoinSwitch witnessed an exponential 1000% escalation in its women users. Although women investors still make-up a tiny percentage of the crypto community, they’re adding fierce competition in the Indian market. Women tend to truly save much more than their male counterparts and more savings means more diversity in investments such as high-return assets like cryptocurrencies. Also, women tend to be more analytical and better at evaluating risks before making the proper investment choices, so they’re more successful investors.
Increasing Mainstream Institutional Adoption of Cryptocurrencies
Uncertainty and panic aroused by SARS-Covid 19 resulted in a liquidity crisis even ahead of the economic crisis set off. Many investors converted their holdings into cash to shield their finances, which triggered the collapsed prices of bitcoin and altcoin. But although crypto suffered a major crash, it still managed to be the most effective performing asset class of the season 2020. With the increased vulnerability of the device and loss in trust in the policies of the central bank and money in its current design, people have an increased appetite for digital currencies which triggered the rebound of cryptocurrency. As a result of stellar performance of cryptocurrency in the midst of the global financial crisis, the uptrend has strengthened fascination with the virtual currency market in Asia and the remaining world.
Furthermore, to fuel society’s demand for convenient and reliable transaction solutions, digital payment gateways such as PayPal have also shown their support towards cryptocurrencies that can enable consumers to keep, buy, or sell with virtual assets. Recently, Tesla CEO Elon Musk made an announcement of investment in the cryptocurrency market worth USD1.5 billion, and that the electric company would accept bitcoin from buyers, which resulted in an international bitcoin price jump from USD40,000 to USD48,000 within two days. Two of the greatest platforms for making payments across the entire world, Visa and Mastercard are also endorsing cryptocurrencies by introducing them as a medium to produce transactions. While Visa has recently made the announcement of allowing transactions with stable coins on the Ethereum blockchain, Mastercard would begin transactions with crypto sometime in 2021.
What does the future hold for the Cryptocurrency market in India?
The Indian cryptocurrency market isn’t immune to the terrible crypto crashes. Despite humongous investment from global counterparts, local investors are still maintaining distance from crypto investments due to uncertainty in regards to the legality of the digital coin ecosystem in India as well as the high volatility of the market. Even though the cryptocurrency market is booming since last year, Indians own less than 1% of the world’s bitcoin, which creates a proper disadvantage for the Indian economy. The Indian government is likely to appoint a fresh panel to review the chance of regulating digital currencies in the united kingdom as well as give attention to blockchain technology and propose it for technological enhancements.
The capacity of blockchain technology to provide a safe and immutable infrastructure has been realized by various industries to instill transparency in transactions. For a country with over 15 million crypto adopters, the newest recommendation from the committee could hold great value to find out the future of cryptocurrency in India. However, the stakeholders feel that the technical and economic power is likely to make India a vital player in the crypto and blockchain market. Gradually, the cryptocurrency is gaining mainstream acceptance, which could lead to raised adoption of digital currency.