Wealthy rewards often carry great risks, and the same goes for 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 an asset class of the new era. A growing ban on digitalization, flexible regulatory frameworks and a ban by the Supreme Court on dealing with banks dealing with crypto-based companies has parked investments of more than 10 million Indians in 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 looked to buy value. As the madness of cryptocurrency continues, many new cryptocurrency exchanges have sprung up in the country that allow it to be bought, sold and traded, offering functionality through user-friendly 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 world’s largest cryptocurrency exchange by 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 as of 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. 1487% tremendous.
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 between 28 and 29) and they are technological. The older generations still prefer to invest in gold, real estate, patents or stocks, while the new ones are taking high-risk cryptocurrency exchanges because they are more adaptable to them. India ranks 11th in Chainalysis’s list of 2020 reports to take cryptography worldwide, which shows the excitement about cryptography among the Indian population. The government’s disrespectful attitude towards cryptography or rumors surrounding cryptography also fail to shake the confidence of the young population in the digital coin 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 largest cryptographic economies in the world. 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 strength in the country as it offers a new and faster way for young generations to make money.
It is safe to say that cryptocurrency can become a millennial Indian currency that is all gold for parents!
• Rise of Fintech Start up
The madness of cryptocurrency created multiple trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many more. These cryptocurrency exchange platforms are highly secure, available on multiple platforms, and allow for instant transactions, providing a pleasant interface for cryptocurrency enthusiasts to buy, sell, or sell digital assets without restriction. Many of these platforms support INR to be as low as 0.1% on 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 more than 900,000 users, and offers customers comparable transaction capabilities. CoinSwitch Kuber offers the best cryptocurrency exchange platform for Indians and is ideal for both beginners and everyday. 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 opportunity to trade, as well as providing investors with insurance to cover losses 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
A bill on a ban on 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 investors ’concerns by saying that the government has no plans to ban the use of cryptocurrency altogether. In a statement to the leading 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 in blockchain, bitcoins or cryptocurrency.” 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 a persistent fear of a ban, transaction volumes continued to grow, with user registration and revenue from local cryptocurrencies becoming 30 times higher than a year ago. One of the oldest exchanges in India, 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 ways in which the digital world and cryptocurrency experiments can happen.”
Instead of sitting on the sidelines, investors and stakeholders want to get the most out 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 ”, due to the predominant commitment of the male population in the cryptocurrency market, the ever-increasing number of women 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 “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 much more than men and more savings means more diversity in investments, such as high-yielding assets such as cryptocurrencies. In addition, women are more analytical and better at assessing risks before making the right investment options, so they are more successful investors.
Increasing the main adoption of institutional cryptocurrency
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 prices for bitcoin and altcoin. 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 hunger for digital currencies which has led to the bounce of 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 the rest of the world’s virtual currency market.
In addition to fueling 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 made a $ 1.5 billion investment in the cryptocurrency market, announcing that 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 being supported by cryptocurrencies as a medium for transactions. Although Visa has made an announcement to allow transactions with stable coins in the Ethereum blockchain, Mastercard will begin transactions with crypto in 2021.
What is the future for the Indian Cryptocurrency market?
India’s cryptocurrency market is not immune from horrific 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 intends to appoint a new table to study 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 a secure and unchanging infrastructure has been realized by various industries to achieve transparency in 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 acceptance, which could lead to greater adoption of digital currency.
According to another TechSci Research Report “Indian Cryptocurrency Market By Offer (Hardware and Software), by Process (Mining and Transaction), by Type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, Others), by End User (Banks, Real Estate, Stock Exchange and Virtual Currency), Regions, Forecasts and Options, 2026 “, India’s cryptocurrency is projected to grow at a large CAGR due to the growing demand for transparency and reduced transaction costs. -they are feeding the currency market.