Offers Cryptocurrency Turn out to be Each and every Indian’s Desire Expense?

Rich rewards often entail great risks, and the 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 coping 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 over the past year amid a huge drop in prices as much investors looked over value buying. As the cryptocurrency frenzy continues, many new cryptocurrency exchanges attended up in the united states that enables 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. CashTab 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 few 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 as a result of selection 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. 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 one of the Indian population. Nor does the less-than-friendly attitude of the government towards crypto or rumors swirling around the crypto are able to shake the confidence of the youth population in the digital coin market.

India offers the lowest priced internet in the world, 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 the largest crypto economies in the world. Based on SimilarWeb, the united states could be 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 brand new and fast way of earning money.

It is safe to state that cryptocurrency might become Indian millennials what gold is due to their parents!

Rise of Fintech Start ups
The cryptocurrency craze led to 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 an amiable interface for crypto enthusiasts to purchase, sell, or trade digital assets limitlessly. Several platforms accept INR for purchases and trading fees only 0.1% so simple, fast, and secure platforms present a lucrative opportunity for both first-time investors and local traders.

WazirX is one of the leading cryptocurrency exchange platforms with over 900,000 users that delivers customers with peer-to-peer transaction capabilities. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is ideal for beginners in addition to daily doers. Unocoin is one of the oldest cryptocurrency exchange platforms in India that take into account over a million traders through mobile applications. CoinDCX provides users with 100+ cryptocurrencies as an option to create exchanges and even provides investors with insurance to cover losses in case of a protection breach. So, global investors are eyeing the plethora of cryptocurrency exchange platforms in India to take advantage 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 could easily get enacted into law. However, Finance and Corporate Affair Minister Nirmala Sitharaman eased some investor’s concerns saying that the government has not planned to fully bar cryptocurrency use. In a statement directed at a number one English newspaper, Deccan Herald, the Finance Minister said, “From our side, we are clear that we are not shutting all options. We will allow certain windows for people to accomplish experiments on the blockchain, bitcoins, or cryptocurrency.” It is evident that the government is still scrutinizing the national security risks posed by cryptocurrencies before selecting putting an entire 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. Inspite of the lingering concern with ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from a year ago. Among India’s oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The total level of Zebpay per day of Feb 2021 got equal to the volume generated in the entire 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 looking at ways by which experiments could happen in the digital world and cryptocurrency.”

As opposed to sitting on the side-lines, investors and stakeholders want to help make the best of proliferating the digital coin ecosystem before 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” as a result of 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 form of investment methods. Earlier, women used to stick to traditional investments nevertheless 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% increase in its women users. Although women investors still constitute a tiny percentage of the crypto community, they’re setting up fierce competition in the Indian market. Women tend to save far more than their male counterparts and more savings means more diversity in investments such as high-return assets like cryptocurrencies. Also, women are far more analytical and better at evaluating risks before making the right investment choices, so they’re more successful investors.

Increasing Mainstream Institutional Adoption of Cryptocurrencies
Uncertainty and panic aroused by SARS-Covid 19 led to a liquidity crisis even before the economic crisis set off. Many investors converted their holdings into cash to safeguard their finances, which resulted in the collapsed prices of bitcoin and altcoin. But although crypto suffered a major crash, it still were able to be the best performing asset class of the entire year 2020. With the increased vulnerability of the machine and loss of trust in the policies of the central bank and profit its current design, individuals have an elevated appetite for digital currencies which resulted in the rebound of cryptocurrency. Due to the stellar performance of cryptocurrency in the middle of the global financial crisis, the uptrend has strengthened interest in the virtual currency market in Asia and the remaining portion of the world.

Furthermore, to fuel society’s demand for convenient and reliable transaction solutions, digital payment gateways such as PayPal have shown their support towards cryptocurrencies that will enable consumers to put on, 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 to make payments across the world, Visa and Mastercard may also be endorsing cryptocurrencies by introducing them as a moderate to create transactions. While Visa has 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 remain maintaining distance from crypto investments as a result of uncertainty about the legality of the digital coin ecosystem in India in addition to the high volatility of the market. Although the cryptocurrency market is booming since a year ago, Indians own less than 1% of the world’s bitcoin, which creates a strategic disadvantage for the Indian economy. The Indian government is about to appoint a brand new panel to review the possibility of regulating digital currencies in the united states in addition to focus on blockchain technology and propose it for technological enhancements.

The capability of blockchain technology to provide a safe and immutable infrastructure has been realized by various industries to instill transparency in transactions. For a nation 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 believe that the technical and economic power could make India a vital player in the crypto and blockchain market. Gradually, the cryptocurrency is gaining mainstream acceptance, that could lead to higher adoption of digital currency.

Rich rewards often entail great risks, and the 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 coping with crypto-based…

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