Has Cryptocurrency Become Every Indian's Dream Investment?
Has Cryptocurrency Become Every Indian’s Dream Investment?
A lot of the richest rewards are accompanied by substantial risk. This is especially true for the volatile cryptocurrency market. The uncertainties of 2020 around the globe has led to increase in interest from large and large institutional traders in trading cryptocurrency that is a new kind of investment. dennisloos.de The increasing rate of digitization as well as the flexibility of the regulatory framework, and the supreme court’s decision to lift the bans on banks that deal with companies that are crypto-related have resulted in the investment of more than 10 million Indians in the last year. There are a number of major cryptocurrency exchanges around the world are currently investigating the Indian market for cryptocurrency and have witnessed an growth in the volume of trades daily over the last year despite the massive drop in prices , as investors looked into value-buying. As the boom in cryptocurrency continues, several brand new cryptocurrency exchanges are emerging in India. They allow buying, selling and trading using user-friendly applications. WazirX is India’s largest cryptocurrency trading platform and which has increased its number of customers by 1 million and 2 million between March 2021 to January. What is driving the biggest of cryptocurrency exchanges entering the Indian market? In the year 2019, the biggest crypto exchange according to volume of transactions, Binance acquired the Indian trade platform WazirX. Another startup in the field of crypto, Coin DCX secured investment from Seychelles-based BitMEX and the San Francisco-based company Coinbase. Blockchain and crypto-related startups based within India have attracted investment to the tune of USD99.7 million in the period June 15-2021. It was USD95.4 million in 2020. In the last five years, the global investment in the Indian crypto market have grown by an astounding 15077 percent. Despite the unclear policies for India foreign investors have placed huge bets on India’s digital currency ecosystem due to a variety of factors which include * Techno-savvy Indian population The bulk of Indians of 1.39 billion are younger (median age range of 28-29 to 29 years of age) and tech-savvy. While the older generation invests in gold, real estate or patents, in addition to stocks, younger generations are turning to volatile cryptocurrency market since they are more tolerant to the transactions. India is ranked 11th in Chainalysis’s list of 2020’s global adoption of cryptocurrency which indicates the enthusiasm for cryptocurrency among India. Indian majority. The indifferent government policy towards cryptocurrency or the rumors about crypto’s rumours could discredit the trust of younger generations in the market for cryptocurrency. India is the most affordable internet connectivity anywhere in the world. A gigabyte of mobile internet is around $0.26 and the global average is $8.53. So, more than half the population of the world is taking advantage of internet connectivity at a low cost which could allow India to become one of the largest cryptocurrency-based economies around the globe. Based on SimilarWeb India is the second-largest in terms of internet traffic for Peer-to-peer Bitcoin trading platforms Paxful. While most of India’s population of people is suffering from an uncontrollable “pandemic effect”, cryptocurrency is gaining momentum in India because it provides young people with a fresh and quick method of earning money. HTML0 There is a chance that crypto could be able to become for Indian young people’s equivalent of what gold did to the parents! * Rise of Fintech Start ups The rise of cryptocurrency has led to the creation of a variety of trading platforms , including WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and numerous others. These platforms that allow trading on cryptocurrency are safe and available across various platforms. They also allow immediate transactions, providing an easy method for cryptocurrency enthusiasts to buy as well as sell cryptocurrency with no limitations. They are all accepting Indian rupees for purchases and trading charges less than 0.1 percent. These easy, fast and secure platforms provide the perfect opportunity for beginners investors as well as local traders. WazirX is one of the most well-known cryptocurrency exchange platforms with more than 900,00 users that allow users to make transactions through peer-to-peer. CoinSwitch Kuber provides the most efficient exchange service for Indians and is ideal for beginners and ordinary customers. Unocoin is among the most well-known crypto exchange services in India that has more than one million transactions on mobile applications. CoinDCX offers users hundreds of options for converting their currencies . It also offers investors security in case of loss occurring when there’s an incident of security. Thus investors from all over the world are focused on the various crypto exchange options in India to profit from the expanding market. * Mixed Government Response The bill which would legalize the use of a virtual currency, which will make it unlawful for anyone who is involved in the possession mining, issuance trading or transfer of cryptocurrency assets may be passed in law. However, Finance and Corporate Affairs Minister Nirmala S. Sitharaman has eased a few investors’ fears by releasing an announcement that the government doesn’t intend to prohibit all use of cryptocurrency. A letter addressed to the most revered English newspaper that is the Deccan Herald, the Finance Minister said, “From our side, we’re sure that we’re not shutting out all options. We will open certain window for individuals to conduct experiments on bitcoins, the blockchain or other cryptocurrency. ” It’s evident that the government is looking at the security threats to the nation that cryptocurrency present before deciding regarding whether to implement the complete ban. In March 2020 , the Supreme Court ruled against the bank’s decision that prohibited banks from trading in cryptocurrencies. This spurred investors to join the cryptocurrency market. In spite of the uncertainty around the ban, the volume of transactions was increasing as a result of the registration of users, and inflows of funds into local crypto exchanges increased by thirty percent over one year ago. Unocoin is one of the most established exchanges in India, Unocoin added 20,000 users between January through Feb 2021. The Zebpay amount per day for February 20, 2021, was comparable to the amount generated during the entire months of the month February. 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 closing our eyes, we are exploring possibilities for experiments to occur in the world of digital as well as in the cryptocurrency world. “ Instead of the the edge, investors and stakeholders are determined to make the most of the chance to grow the digital currency ecosystem until the government introduces the restrictions for “private” cryptocurrency and announced digital currency sovereign to the state. Are India headed toward Financial Inclusion using Cryptocurrency? Was previously thought of as a “Boys club” due to the dominance of males in the crypto market. the increase in female traders and investors has led to a rise in gender equality in the digital and new investment method. The past was when women could choose to stick with traditional investments but these days they are taking risks and getting into the crypto marketplace in India. In the wake of the Supreme Court’s ruling on the legality of “virtual currency”, the Indian cryptocurrency platform CoinSwitch witnessed an unprecedented 1,000 percent increase in female users. While women comprise just a tiny fraction of the cryptocurrency market they are opposing the their market shares within India. Indian marketplace. Women have a higher savings than their male counterparts which means that they are more diverse in investment options, such as high-return assets like the crypto. They are additionally more logical and have better judgment of the risks before making most appropriate investment decisions, and thus are better investors. Increasing Mainstream Institutional Adoption of Cryptocurrencies The fear and insanity that was caused by the SARS-Covid 19 outbreak led to the development of a liquidity crisis before the economic crisis started to take off. Many investors turned their assets to cash to ensure their financial security. This caused the rise for Bitcoin or Altcoin. But despite taking a huge decline, it was able to become the most profitable asset class in 2020. Because of the growing risk to the system and declining confidence in the bank’s policies and the way that money is structured, there is a rising demand for digital currencies that has led to a rise in the value of cryptocurrency. With the booming rise of cryptocurrency amid the economic crisis that is sweeping across the globe, the increase in interest has accelerated markets for digital currencies across Asia and all over the world. Additionally, in order to satisfy the demand for simple and safe payments, online payment processors such as PayPal have also displayed their admiration for cryptocurrency that permit consumers to purchase and sell or hold assets. The last time they did this, Tesla CEO Elon Musk made an announcement of an investment in the market for cryptocurrency of USD1.5 billion. Musk stated that Tesla will accept bitcoin payments from customers . This caused an increase in price of bitcoin around the world, ranging between USD40,000 to USD48,000 in only the span of two hours. The two most famous payment processors around the world, Visa and Mastercard are encouraging cryptocurrency by providing a feasible option to make transactions. Even though Visa has made an announcement 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 is the future prospects for the cryptocurrency market for India? There’s an explanation for why it is that Indian crypto market hasn’t been safe from the devastating crash of crypto. Despite huge investment from foreign investors, local investors remain far away from investing in cryptocurrency due to of the uncertainty regarding the credibility of the currency ecosystem in India and the high level of market volatility. Even though the market for cryptocurrency has grown since the the year Indians have less than one percent of the bitcoins that are traded worldwide and this is a significant negative for the Indian economics. The Indian government is planning to set up an independent panel that will examine ways to regulate digital currency in the country. The panel will additionally, focus on blockchain technology and propose that they be utilized for technological advancements. The capability of blockchain technology to provide a safe and safe infrastructure has been proven by a variety of industries to ensure the security of transaction. In a country with more than 15 million users of cryptocurrency, new recommendations from the committee could have major importance in determining the next steps are for the cryptocurrency industry in India. But they are of the opinion that India’s economic and technological power will make India to become a significant player in the crypto 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 the need for transparency and the reduction in the cost in transaction. In addition the growing use of digital currency and the increasing adoption of blockchain technology is leading India the cryptocurrency sector.