If the mega cryptocurrency made you nervous, especially if you are investing in digital coins like Bitcoin or Ethereum, hold your nerve as the chaos the crypto asset class saw last week has a silver lining.
While the short volatile period has been widely touted as a price correction (a bitcoin is currently hovering around $ 37,000 after hitting a record high of almost $ 60,000 a few weeks ago), industry experts believe that you should stay invested and thinks for a long time. Term is the rule of thumb for crypto investors in the country.
India is increasingly using Bitcoin and other cryptocurrencies. According to reports, the country currently has more than one crore crypto investor, and the number is growing significantly every day as several domestic crypto exchanges operate in the country.
Although the Reserve Bank of India (RBI) is wary of cryptocurrencies, Indians are ready to invest in the digital coins touted as the most important asset class of the 21st century.
According to Rahul Pagidipati, CEO of ZebPay, Indian investors are learning to view Bitcoin as an asset class that belongs in any long-term portfolio.
“Indians own less than 1 percent of the world’s bitcoin. Leaving them behind will create a strategic disadvantage for the Indian economy. In 2021, we expect more institutions and government officials to realize that we need to close the bitcoin gap,” Pagidipati said .
In April 2018, the RBI ordered financial institutions to maintain close relationships with individuals or companies that trade virtual currencies such as Bitcoin. However, in March 2020, the Supreme Court allowed banks to continue processing cryptocurrency transactions from merchants and exchanges to give crypto investors a break.
In March of this year, Finance Minister Nirmala Sitharaman said that not all windows on cryptocurrencies will be closed, which brings further relief for stakeholders.
Earlier this month, RBI Governor Shaktikanta Das said the central bank had reported major concerns to the government about the cryptocurrency.
Amid the uncertainties lies the fact that a 40 percent drop in Bitcoin price from its all-time high looks dramatic but is normal in many volatile markets, including crypto, especially after such a large rally, industry players say.
“Such corrections are mainly due to short-term traders taking profits. Investors should invest in education first. Examine the underlying value of Bitcoin, Ethereum and other crypto assets by looking at a company’s information before buying any stocks “said Avinash Shekhar, Co-CEO of ZebPay.
Buyers are aggressively accumulating more and more bitcoins. This is the driving factor that has driven the price growth of the digital coin.
According to Prabhu Ram, Head-Industry Intelligence Group, CMR, looking back over the past decade, such volatility is consistent and equivalent for crypto.
“You may feel concerned in the short term, but the long-term horizon is positive. Bitcoin will remain a small but significant investment in the investor portfolio going forward,” Ram told IANS.
The major players in the industry believe that India is a technology and economic powerhouse that will become a major player in the adoption of crypto and blockchain.
According to Sumit Gupta, CEO and Co-Founder of Cryptocurrency Exchange CoinDCX, cryptocurrency “has now classified itself as a macro asset class for investments that cannot be ignored.
“It will continue to lead to greater mainstream acceptance than ever before,” Gupta told IANS.
(Nishant Arora can be reached at nishant.a@ians.in)
– IANS
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(Only the headline and image of this report may have been updated by Business Standard staff. The rest of the content is automatically generated from a syndicated feed.)
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