bitcoin india: With all the uncertainty, what is driving Indians into the crypto currency?

Sathvik Vishwanath

Bitcoin has had a volatile trading history since its inception in 2009. The first price hike came in November 2013 when a bitcoin was trading at around $ 1,124. Four years later, in late 2017, the virtual currency hit record highs of around $ 20,000. On April 19, 2021, it hit a new high of 50,40,806 rupees. The cryptocurrency has also outperformed gold in the past and is expected to be the solution for reserves.

India is increasingly relying on Bitcoin, blockchain and cryptocurrency in general. The country triumphs as the top remittance market as it grew to $ 100 billion in 2015. This makes it one of the thriving markets for cryptocurrencies.

The country has the world’s largest IT population and is also one of the growing smartphone markets. As a by-product, e-commerce players and online payments are also growing rapidly. This has also led to increased awareness and curiosity about cryptocurrencies. Ecommerce gamers may increasingly use cryptocurrency as payment gateways.

Indian investors have recognized the potential of the growing market and are showing increasing interest in funding the cryptocurrency markets, particularly Bitcoin. While a small portion of the volume of sales comes from short-term traders seeking immediate profits, the trend is mainly driven by long-term investors who understand the value of cryptocurrency and want to own it for years and even decades in order to reap optimal benefits.

Bitcoin is one of the most famous cryptocurrencies and is preferred for its reliability, credibility and feasibility features. There are several advantages to being a decentralized, digital and impossible-to-counterfeit currency, which has led industry experts to refer to it as “Money 2.0”.

Currently, the cryptocurrency market is still in its early stages, and just recently the market has seen tremendous growth, reaching $ 2 trillion, with Bitcoin accounting for over 50% of the cryptocurrency market, according to CNBC.

Indian investors are increasingly allocating their portfolios a separate place for cryptocurrency investments. You are keeping an eye on the market and therefore invest even more as it is considered one of the most protected and most suitable investment options. The domestic investing community has often expressed a desire to have adequate regulation and a framework for the full functioning of cryptocurrency in India.

It was in 2010 when Bitcoin first got cash value when a customer exchanged 10,000 Bitcoin for two pizzas. Eventually other currencies were introduced and the market flourished in the years that followed. Since then, it has grown in popularity, and although it has seen some slumps, the market has proliferated to the point that it will be the ideal investment decision and will be preferred to gold in the times to come.

Impact on the pandemic
While the pandemic disrupted our lives last year, it also revitalized the cryptocurrency market. Prices went down, but the troubled times didn’t last long and it eventually turned out to be a boon to the cryptocurrency industry. The market started to grow during the lockdown and, despite all the uncertainties, the sector is currently booming.

In March 2020, the Supreme Court lifted the restrictions imposed by the RBI on the use of cryptocurrencies. This gave a new boost to the crypto market in India. While markets were booming, many investors resorted to cryptocurrency during the lockdown.

Although the cryptocurrency market faces various challenges on its growth path, investor interest seems to have increased over time.

There have been many ifs and buts about cryptocurrencies and their viability in the Indian market. Indeed, given that it is a volatile and constantly evolving sector, it is difficult to predict what will happen next. While new investors want to know when to invest properly and what futuristic benefits it offers given current market growth, it seems like a good option per se, and their future looks promising for now.

(Sathvik Vishwanath is the co-founder and CEO of Unocoin. The views are his own)

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