Indians hold $ 40 billion in cryptocurrency, report suggests – Bitcoin News Bitcoin
Crypto investments in India have grown significantly in importance over the past year, as shown by blockchain data. Despite the unclear regulatory situation in the country, more than 15 million Indians have bought or sold digital currencies.
Indian crypto investments on the rise amid regulatory uncertainty
A growing number of Indians have poured money into cryptocurrencies over the past year when large coins hit all-time highs. Investments in crypto assets have increased from around $ 200 million to nearly $ 40 billion, Bloomberg reported, citing blockchain forensics company Chainalysis.
The massive growth was registered in the second most populous country in the world despite an unclear future for decentralized digital money. The rise in investment interest comes against the backdrop of a generally hostile, but also ambiguous, attitude by the Indian central bank towards crypto.
Over 15 million Indians have bought and sold cryptos, the publication added, in disregard of a proposed ban on coin trading. Their number is approaching the 23 million crypto traders in the US and far exceeds the 2.3 million active traders in the UK.
The remarkable surge in crypto investors is largely associated with Indians between the ages of 18 and 35, according to Sandeep Goenka, co-founder of the Zebpay crypto exchange. Goenka, who represents the industry in regulatory talks with the government, stated that it is much easier for young people to invest in cryptocurrency than gold:
You go online, you can buy crypto, you don’t have to verify it, unlike gold.
Indians find new gold in Bitcoin
Historically, gold has been a very popular investment in India, where households are estimated to own 25,000 tons of the precious metal. However, the latest data from the World Gold Council has shown that adults under the age of 34 are less attracted to gold than older Indians.
A young entrepreneur who gave up gold and turned to crypto has invested over 1 million Indian rupees (around $ 13,400) in Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) since December. To purchase the coins, 32-year-old Richi Sood borrowed some of the money from her father.
Sood, which sold part of its cryptocurrency when BTC exceeded $ 50,000 in February and then bought it again when prices fell, used the profits to fund the overseas expansion of its education startup Study Mate India. She says that crypto has higher returns than gold in the short term and elaborates:
I would rather put my money in crypto than gold. Crypto is more transparent than gold or property.
In the past 12 months alone, daily crypto trade values have increased nearly 900%, the report shows. At the same time, India has yet to enact extensive regulations for the expanding crypto space, and the lack of clarity has likely put off many potential investors and traders.
In 2018, the Reserve Bank of India published a circular banning financial institutions from providing services to crypto companies. In May of this year, however, the RBI informed the banks that the instruction was no longer valid, citing a year-old ruling by the Supreme Court. Still, several commercial banks recently discontinued their services for customers who trade cryptocurrencies.
What do you think the future holds for cryptocurrencies in India? Do share your thoughts on the matter in the comments below.
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