Wealthy rewards often carry great risks, and so does the highly volatile cryptocurrency market. The uncertainty of 2020 increased the interest of the masses and large institutional investors worldwide in the cryptocurrency trade, in a new age asset class. With increasing digitalisation, flexible regulatory frameworks and a ban on the Supreme Court’s ban on dealing with crypto-based companies, more than 10 million Indians have been parked in investments over the past year. Several major cryptocurrency exchanges around the world are actively exploring the Indian crypto market, amid a sharp drop in prices that has been showing a steady rise in daily trading volume over the past year, as many investors have been looking to buy value. As the madness of cryptocurrency continues, many new cryptocurrency exchanges have sprung up in the country that allow you to buy, sell and trade, offering functionality through easy-to-use applications. WazirX, India’s largest cryptocurrency trading platform, doubled its users from one million to two million between January and March 2021.
What drives the world’s largest crypto exchanges to the Indian market?
In 2019, the largest cryptocurrency exchange in the world in terms of trading volume, Binance acquired India’s trading platform, WazirX. Coin DCX secured investment in Seychelles-based BitMEX and the San Francisco-based giant Coinbase. Indian crypto and blockchain companies attracted an investment of $ 99.7 million by June 15, 2021, up from about $ 95.4 million in 2020. Over the past five years, global investment in the Indian crypto market has increased. A whopping 1487%.
While India’s policy is not clear, global investors are making big bets on a number of factors in the country’s digital coin ecosystem, such as.
• Indian population of technology experts
The main population of 1,390 million is young (average age 28-29) and a technology expert. Older generations still prefer to invest in gold, real estate, patents or stocks, while the new ones are taking high-risk cryptocurrency exchanges, which are more adaptable to them. India ranks 11th in Chainalysis’s list of 2020 reports to take cryptography worldwide, which shows the excitement of cryptography among the Indian population. The government’s disrespectful attitude towards cryptography or rumors about cryptography have not been able to shake the confidence of the young population in the digital currency market.
India offers the cheapest internet in the world, where a gigabyte of mobile data costs about $ 0.26 and the global average is $ 8.53. So nearly half a trillion users are taking advantage of affordable Internet access, which increases India’s potential to become one of the world’s largest cryptocurrencies. According to SimilarWeb, the country is the second largest source of web traffic for the peer-to-peer bitcoin trading platform, Paxful. While the mainstream economy is still struggling with the “pandemic effect,” cryptocurrency is gaining momentum in the country as it offers a new and faster way for the younger generation to make money.
It is safe to say that cryptocurrency could become a millennial Indian currency for parents.
• The rise of Fintech Start-ups
The cryptocurrency craze has created a variety of trading platforms, including WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many more. These cryptocurrency exchange platforms are highly secure, available across multiple platforms, and allow for instant transactions, providing cryptocurrency enthusiasts with a seamless interface to buy, sell or trade digital assets without restriction. Many of these platforms support INR to be as low as 0.1% for purchase and trading commissions, so simple, fast and secure platforms are gaining opportunities for first-time investors and local traders alike.
WazirX is one of the leading cryptocurrency exchange platforms with over 900,000 users and offers comparable transaction capabilities to its customers. CoinSwitch Kuber offers the best cryptocurrency exchange platform for Indians and is ideal for both beginners and everyday users. Unocoin is one of the oldest cryptocurrency exchange platforms in India, attracting one million traders through mobile applications. CoinDCX offers users more than 100 cryptocurrencies as an option for exchanges, as well as insurance to cover the loss of investors in the event of a security breach. So global investors are looking at India’s many cryptocurrency exchange platforms to take advantage of the emerging market.
• Mixed government response
The bill on a ban on the virtual currency that would criminalize anyone who owns, issues, mines, trades and transfers cryptocurrencies could become law. However, Finance and Corporation Minister Nirmala Sitharaman eased investor concerns by saying that the government has no plans to ban the use of cryptocurrency altogether. In a statement to the main English newspaper Deccan Herald, the finance minister said: “For our part, we are very clear that we are not closing all options. We will allow certain windows to allow people to experiment with blockchain, bitcoins or cryptocurrencies.” . It is clear that the government is considering the risks to national security posed by cryptocurrencies before deciding to impose a full ban.
In March 2020, the Supreme Court overturned a decision by the central bank to ban financial institutions from trading in cryptocurrencies, which prompted investors to accumulate in the cryptocurrency market. Despite persistent fears of a ban, transaction volumes continued to grow, and user registration and local crypto exchange revenue grew 30 times more than a year ago. One of India’s oldest exchanges, Unocoin added 20,000 users in January and February 2021. The total volume of Zebpay per day in February 2021 was equivalent to the volume generated throughout the month of February 2020. The minister said in an interview with CNBC-TV18: “I can only give you this clue that we are not closing our minds. We are exploring the ways in which experiments can take place in the digital world and in cryptocurrencies.”
Instead of sitting on the sidelines, investors and stakeholders want to make the most of the proliferation of the digital currency ecosystem until the government imposes a ban on “private” cryptocurrency and announces a sovereign digital currency.
Is India moving towards financial inclusion with Cryptocurrency?
Once considered a “boys’ club”, with the growing commitment of the male population in the cryptocurrency market, the growing number of female investors and traders has led to greater gender neutrality in the new and digital form of investment methods. Earlier, women used to hold on to traditional investments, but now they are taking risks and entering the cryptographic space of India. After the Supreme Court clarified the legality of the “virtual currency”, India’s cryptocurrency platform, CoinSwitch had an exponential growth of 1000% of its female users. Although women investors still make up a small percentage of the crypto community, they are facing stiff competition in the Indian market. Women tend to save a lot more than men, and more savings means more diversity in investment, such as high-yielding assets such as cryptocurrencies. In addition, women are more analytical and better at assessing risks before making the right investment opportunities, so they are more successful investors.
Increasing the main adoption of cryptocurrency institutions
The uncertainty and panic created by SARS-Covid 19 led to a liquidity crisis before the onset of the economic crisis. Many investors turned to cash to protect their finances, which led to falling bitcoin and altcoin prices. But even though cryptography suffered a major crash, it managed to become the best asset class of 2020. With the greater weakness of the system and the loss of confidence in the policies of the central bank and the current design of money, people. they have increased the appetite for digital currencies, which has led to a rebound in cryptocurrencies. Due to the excellent performance of cryptocurrencies in the midst of the financial crisis, the upward trend has strengthened interest in the Asian and other virtual currency markets around the world.
In addition to feeding society’s demand for convenient and reliable transaction solutions, digital payment gateways like PayPal have also shown support for cryptocurrencies that consumers can hold, buy or sell with virtual assets. Recently, Tesla CEO Elon Musk announced a $ 1.5 billion investment in the cryptocurrency market, and the electric company would accept bitcoin from buyers, which raised the price of international bitcoin from $ 40,000 to $ 48,000 within two years. days. Two of the largest payment platforms in the world, Visa and Mastercard, are also accepting cryptocurrencies as a medium for transactions. Although Visa has announced that it will allow transactions with stable Ethereum blockchain coins, Mastercard will begin transactions with crypto in 2021.
What is the future for the Indian Cryptocurrency market?
The cryptocurrency market in India is not immune from horrible cryptocurrency accidents. Despite huge investment from global counterparts, local investors are keeping their distance from crypto investments due to the uncertainty about the legality of India’s digital currency ecosystem and the high volatility of the market. Although the cryptocurrency market has been growing since last year, Indians have less than 1% of the world’s bitcoin, which creates a strategic disadvantage for the Indian economy. The Indian government plans to appoint a new board to explore the possibility of regulating the country’s digital currencies, as well as to focus on blockchain technology and propose technological improvements.
The ability of blockchain technology to provide secure and seamless infrastructure has been realized by many industries to incorporate transparency into transactions. For a country with more than 15 million crypto users, the commission’s new recommendations could be of great value in determining the future of India’s cryptocurrency. However, stakeholders believe that technical and economic power will make India a key player in the crypto and blockchain market. Gradually, cryptocurrency is gaining conventional acceptance, which could lead to greater adoption of digital currency.
According to another TechSci Research Report “Indian Cryptocurrency Market By Offer (Hardware and Software), Process (Mining and Transaction), Type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, Others), End User (Banking, Real Estate, Stock Exchange and Virtual Currency), Regional, Forecast and Opportunities, 2026 “, India’s cryptocurrency is expected to grow at a high CAGR due to the demand for transparency and reduced transaction costs. they are being fed.