Has Cryptocurrency Become Every Indian's Dream Investment?
Has Cryptocurrency Become Every Indian’s Dream Investment?
The rewards of investing in cryptocurrency are not without high risk. This is certainly the case for the uncertain cryptocurrency market. The uncertainties of 2020 around the globe has led to increased interest among large and large institutional traders in trading cryptocurrency that is a new kind in asset.dennisloos.de The increasing rate of digitization as well as the flexibility of the regulatory framework as well as the supreme court’s decision to remove the bans on banks that work with crypto-related businesses have led to investments of more than 10 million Indians over the last year. There are a number of major cryptocurrency exchanges around the world are currently exploring the Indian market for cryptocurrency and have witnessed an growth in the volume of trades daily in the last year, despite the massive drop in the prices of cryptocurrency as investors researched value buying. The cryptocurrency boom continues, several brand new exchanges that deal in cryptocurrency are emerging in India. They permit buying, selling and trading using user-friendly applications. WazirX is India’s largest cryptocurrency trading platform. It which has increased its number of customers by one million and two million in the months between March 2021 and January. What is driving the biggest of cryptocurrency exchanges entering the Indian market? In the year 2019, the most significant crypto exchange in terms of volume of transactions, Binance acquired the Indian trade platform WazirX. Another new start-up within the crypto industry, Coin DCX secured investment from Seychelles-based BitMEX and the San Francisco-based giant Coinbase. Blockchain and crypto-related startups based within India have attracted investment up to USD99.7 million in the period June 15-2021. The total was USD95.4 million by the year 2020. In the last five years, the global investment in the Indian cryptocurrency market have increased by an astounding 15077 percent. Despite the unclear policies for India International investors place huge bets on India’s cryptocurrency ecosystem due to a variety of factors which include * Techno-savvy Indian population The bulk of the population of 1.39 billion are youthful (median age range of 28 to 29 year old) and tech-savvy. The older generation is more inclined to invest in gold, real estate or patents, in addition to stocks, younger generations are embracing more risky cryptocurrency markets since they are more tolerant to the transactions. India is ranked 11th on Chainalysis’s 2020 list for global adoption of cryptocurrency which illustrates the excitement for cryptocurrency in India. Indian majority. The unfriendly government policy towards cryptocurrency or the rumors that circulate around cryptocurrency’s rumours can discredit the trust of younger generations in the market for cryptocurrency. India is the most affordable internet connectivity anywhere in the world. One gigabyte of mobile data is around $0.26 and the global average is $8.53. This means that more than half the population of the world is taking advantage of the cheap internet which can allow India to become one of the most significant crypto-based economies in the world. Based on SimilarWeb India is the second-largest in terms of internet traffic for Peer-to-peer Bitcoin trading platforms Paxful. While India’s economy is suffering from an uncontrollable “pandemic effect”, cryptocurrency is gaining momentum in India because it provides young people with a fresh and fast method of earning money. The possibility is that the cryptocurrency will turn into for Indian young people’s equivalent of what gold used to be to parents! * Rise of Fintech Start ups The growing popularity of cryptocurrency has led to the creation of a variety of trading platforms , like WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and numerous others. These platforms that allow trading on cryptocurrency are safe and available across various platforms. They allow for instant transactions. This provides an easy method for cryptocurrency enthusiasts to purchase or sell their digital currency with no limitation. They are all accepting Indian rupees for purchases and trading charges just 0.1 percent. These easy, fast and secure platforms provide an ideal opportunity for new investors as well as local traders. WazirX is one of the most well-known cryptocurrency exchange platforms, with more than 900,00 users that offer users the capability to make transactions through peer-to-peer. CoinSwitch Kuber provides the most reliable exchange service available to Indians and is ideal for both novices and regular customers. Unocoin is among the most well-known crypto exchange services in India with more than one million transactions on mobile applications. CoinDCX offers users hundreds of crypto options to exchange their currencies . It also offers investors security in case of losses that occur in the event of an incident of security. So investors from all over the globe are looking at the many crypto exchange services in India to gain from the expanding market. * Mixed Government Response The bill which would regulate the prohibition of virtual currency that would make it unlawful for anyone who is involved in the possession mining, issuance trading or the transfer of cryptocurrency assets, could be passed as a law. However, Finance and Corporate Affairs Minister Nirmala S. Sitharaman has eased a few investors’ fears by releasing declaring that the government doesn’t intend to prohibit all use of cryptocurrency. The letter addressed to the most revered English newspaper The Deccan Herald, the Finance Minister said, “From our side, we’re certain that we’re not shutting out all options. We will open certain window for individuals to conduct experiments on bitcoins, the blockchain or crypto. ” It’s evident that the government is looking at the security threats to the nation that cryptocurrency present before deciding about whether or not to implement an absolute ban. In March of 2020, the Supreme court upheld the bank’s decision that prohibited banks from trading in cryptocurrencies. This led investors to enter the cryptocurrency market. Even with the uncertainty about the ban, the volume of transactions was increasing as a result of registrations of users. Inflows of cash at local cryptocurrency exchanges increased by 30 percent compared to the same time last year. The oldest of exchanges within India, Unocoin added 20,000 users between January to Feb 2021. The Zebpay daily volume for February 20, 2021, was equal to the amount generated during the entire period of February in 2020. The problem of cryptocurrency is a matter of debate. India Finance Minister said in an interview with CNBC TV18 “I can only tell you that we’re not shutting our eyes, we are exploring ways to make experiments occur in the world of digital and in cryptocurrency. “ Instead of the the edge, investors and stakeholders are determined to make the most of the chance to grow the world of digital coins until the government takes action to remove the ban on “private” cryptocurrency and announced digital currency that is sovereign. Are India moving toward Financial Inclusion through the use of Cryptocurrency? Was previously thought of as a “Boys club” due to the dominant involvement of men in the cryptocurrency market. However, the growing number of female traders and investors has led to increasing gender equality in the digital and innovative method of investing. Women in the past could choose to invest in traditional ways but these days women are taking risks and investing in the cryptocurrency markets in India. After the Supreme Court’s decision to clarify the legality of “virtual currency”, the Indian cryptocurrency platform CoinSwitch has seen an exponential 1,000 percent increase in female users. Although women make up only a small portion of the market for crypto, however they are now opposing the their market shares of this Indian marketplace. Women have a higher savings than their male counterparts which means that they are more diverse in investments, including high-return ones like the crypto. They are additionally more thoughtful and have better judgment of risk prior to making most appropriate investment decisions, and thus are better investors. Increasing Mainstream Institutional Adoption of Cryptocurrencies Fear and insanity generated by the SARS-Covid19 outbreak caused the emergence of a liquidity crises long before the economic crisis started to take off. Many investors turned their assets into cash to ensure their financial security. This caused the rise for Bitcoin as well as Altcoin. But despite taking a huge decline, it was able to be the best-performing asset class in 2020. Due to the increased risk to the system and decrease in trust in the bank’s policies and the way that money is structured, there is a rising demand for digital currencies. This has resulted in a surge in the value of cryptocurrency. Due to the booming rise of cryptocurrency amid the current financial crisis around across the globe, the increase of interest has grown in cryptocurrency markets across Asia and all over the world. Additionally, in order to satisfy the need for quick and secure payments, online payment processors such as PayPal have also displayed their love for cryptocurrency, which permit consumers to purchase and sell or hold assets. Recently, Tesla CEO Elon Musk has announced a major investment in the cryptocurrency market worth USD1.5 billion. Musk stated that Tesla would accept bitcoin transactions from its customers, which caused an increase in the cost of bitcoin across the world between USD40,000 to USD48,000 in only 2 hours. One of the two famous payment services in the world, Visa and Mastercard are encouraging cryptocurrency by providing a feasible option for transactions. While Visa has announced the possibility that they will accept transactions made using stable currencies like Ethereum as a payment option, MasterCard, which is based on the Ethereum blockchain Mastercard will be accepting cryptocurrency-based transactions in 2021. What’s the future prospects for the cryptocurrency market for India? There’s one reason why it is that Indian crypto market hasn’t been safe from the devastating cryptocurrency crash. Despite huge investment from foreign investors, local investors remain far away from investing in cryptocurrency due to of doubt about the credibility of the currency ecosystem in India and the high level of market volatility. Even though the market for crypto has grown since the the year Indians have less than one percent of bitcoins worldwide and this is a significant disadvantage for the Indian economies. The Indian government is planning to set up an independent committee to study ways of controlling digital currency in the country. The panel will additionally, focus on blockchain technology and recommend that it could be used to advance technology. Blockchain’s ability to use technology to provide a secure and secure system has been demonstrated by various sectors to guarantee the transparency in transactions. In a country with over 15 million cryptocurrency users , an upcoming recommendation from the committee could have crucial importance in determining the next steps are for the cryptocurrency industry in India. But they believe that India’s economic and technological capabilities will make India to be a major player in the cryptocurrency and blockchain marketplace. In the process the cryptocurrency market is becoming increasingly popular , which could lead to more widespread adoption of digital currencies. According to a separate TechSci Research report on “India Cryptocurrency MarketBy 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, 2026″, India cryptocurrency is anticipated to expand at a rapid rate due to the growing demands for transparency as well as the reduction in the cost for transaction. In addition the growing use of digital currencies as well as the increasing usage of blockchain technology are the driving force behind India the cryptocurrency business.