Seems to have Cryptocurrency Turned out to be All Indian’s Ideal Funding?
Rich rewards often entail great risks, and the exact same does work with the highly volatile cryptocurrency market. The uncertainties in 2020 globally led to 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 of more than 10 million Indians within the last few 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 large drop in prices as much investors viewed value buying. Whilst the cryptocurrency frenzy continues, many new cryptocurrency exchanges attended up in the united states 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 start up, 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 a whopping 1487%.
Despite India’s unclear policy, global investors are making huge bets on the country’s digital coin ecosystem because of selection 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 buy gold, real estate, patents, or equities, the newer ones are embracing the high-risk cryptocurrency exchanges since 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 among the Indian population. Nor does the less-than-friendly attitude of the 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 lowest priced internet on earth, where one gigabyte of mobile data costs around $0.26 as the global average is $8.53. So, almost half the billion users are taking advantage of affordable access to the internet, which enhances India’s potential to become one of many largest crypto economies in the world. Based on SimilarWeb, the country is the second-largest supply 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 united states as it provides the young generation a fresh and fast way of earning money.
The cryptocurrency craze led to 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 a friendly 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 opportunity for both first-time investors and local traders.
WazirX is one of many 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 fantastic for beginners along with daily doers. Unocoin is one of many oldest cryptocurrency exchange platforms in India that account fully for over a million traders through mobile applications. CoinDCX provides users with 100+ cryptocurrencies being an option to create exchanges and even provides investors with insurance to cover losses in the event of 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 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 government hasn’t planned to completely bar cryptocurrency use. In a statement given to a leading English newspaper, Deccan Herald, the Finance Minister said, “From our side, we are clear that we are not shutting all options. We allows certain windows for people to complete experiments on the blockchain, bitcoins, or cryptocurrency.” It’s evident that the government is still scrutinizing the national security risks posed by cryptocurrencies before deciding on putting a whole 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 fear of ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from a year ago. One of India’s oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The total volume of Zebpay each day of Feb 2021 got comparable to the volume 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 we are not closing our minds, we are considering ways by which experiments can occur in the digital world and cryptocurrency.”
As opposed to sitting on the side-lines, investors and stakeholders want to really make the best of proliferating the digital coin ecosystem before government introduces the ban on “private” cryptocurrency and announced sovereign digital currency.
Once considered a “Boys club” due to predominant male population engagement in the cryptocurrency market, the steadily rising number of women investors and traders has led to more gender neutrality in the new and digital kind of investment methods. Earlier, crypto news women used to stay glued to traditional investments however now they are 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% upsurge in its women users. Although women investors still constitute a small percentage of the crypto community, they are adding fierce competition in the Indian market. Women tend to truly save a lot more than their male counterparts and more savings means more diversity in investments such as for example high-return assets like cryptocurrencies. Also, women tend to be more analytical and better at evaluating risks prior to making the right investment choices, so they are more successful investors.
Increasing Mainstream Institutional Adoption of Cryptocurrencies
Uncertainty and panic aroused by SARS-Covid 19 led to a liquidity crisis even prior to the economic crisis set off. Many investors converted their holdings into cash to safeguard their finances, which triggered the collapsed prices of bitcoin and altcoin. But although crypto suffered a major crash, it still was able to be the most effective performing asset class of the season 2020. With the increased vulnerability of the system and loss in trust in the policies of the central bank and money in its current design, individuals have an increased appetite for digital currencies which triggered the rebound of cryptocurrency. As a result of stellar performance of cryptocurrency in the center of the global financial crisis, the uptrend has strengthened fascination with the virtual currency market in Asia and the rest of the world.
Furthermore, to fuel society’s demand for convenient and reliable transaction solutions, digital payment gateways such as for example PayPal also have shown their support towards cryptocurrencies that can enable consumers to hold, 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 led to an international bitcoin price jump from USD40,000 to USD48,000 within two days. Two of the biggest platforms in making payments across the world, Visa and Mastercard may also be endorsing cryptocurrencies by introducing them as a moderate to create transactions. While Visa has already 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 near future hold for the Cryptocurrency market in India?
The Indian cryptocurrency market is not immune to the terrible crypto crashes. Despite humongous investment from global counterparts, local investors continue to be maintaining distance from crypto investments due to uncertainty in regards to the legality of the digital coin ecosystem in India along with the high volatility of the market. Even though cryptocurrency market is booming since last year, Indians own significantly less than 1% of the world’s bitcoin, which creates an ideal disadvantage for the Indian economy. The Indian government is about to appoint a fresh panel to review the chance of regulating digital currencies in the united states along with give attention to blockchain technology and propose it for technological enhancements.
The capacity of blockchain technology to offer 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 new recommendation from the committee could hold great value to determine the ongoing future of cryptocurrency in India. However, the stakeholders feel that the technical and economic power is likely to make India a key player in the crypto and blockchain market. Gradually, the cryptocurrency is gaining mainstream acceptance, which may lead to raised adoption of digital currency.