Indians have always been open to experimenting. The case is similar to cryptocurrencies as well. As of today, Indian stands second in the overall crypto adoption and Invest in Bitcoin in the global market. Interesting analytics here is the age group of these investors.
Cryptocurrency in India has attracted investments from the age group between 18-35 years. As per experts and investment analysis, the total volume of crypto investment will increase to 20 million by end of 2025. While there have been no regulations in cryptocurrency investments, this approach has not stopped Indians from exploring the crypto market.
It is estimated that Indian households currently have invested in 25k tonnes of gold and this will continue to increase. Keeping this investment aside, it is interesting to note that there has been a substantial increase in crypto investment in 2020 – 2021. The overall investment has increased by 600% taking the overall investment to $10 billion in 2021. The numbers are inspiring and come from legitimate sources as well. One of the popular exchanges Coinswitch announced that there have been more than 4 million active users who downloaded and registered using this exchange.
Change in investment mindset of individuals
The future of this investment model has always been lucrative. However, there has been ambiguity considering that there were no active laws to monitor this investment model. The concept of decentralized finance and blockchain technology has made this investment a threat to the overall economy. In 2018, the government came out with a proposal including a total ban on this investment model. However, the honorable Supreme Court soon came out to lift this ban. In 2020, the government lifted the ban and also witnessed a huge increase in this investment.
Uncertainty in regulations and the growing interest
With the growing interest in cryptocurrency, it is worth noticing that the Bitcoin investment in India is also growing. There is a shift in the Indian mindset from investing in gold to Bitcoin. While there are more than 20 million Bitcoin investors across the globe, Indians are also now trying to catch speed here. Investment in India has grown significantly. Most of these investors are first-time or newbies and aged below 40 years.
The investment has also attracted many international companies hiring young engineers and developers. Also, it is worth noting that most cryptocurrencies accept payments and make the transaction much easier and hassle-free.
Investments by elderly and young generations alike
Despite the price volatility and market fluctuations, there has been an increase in this investment. It is exciting to note that these investors are the either elderly or younger generation. Additionally, it is worth noticing that 15% of investors are women.
Is the cryptocurrency industry an alternative to gold investment?
This is a question worth pondering. Gold has always stayed on top as the favorite investment model for Indians. You cannot find any Indian household that does not boast of gold investment. The Now crypto industry is taking a similar shape. As per a recent study by the global gold council, it is understood that investors aged below 35 years are less inclined to gold investment.
With the growing popularity of crypto investments, it is expected that this model will replace gold soon.
What does Government say about cryptocurrency investment?
Investors have been looking forward to a positive signal from the government for more than 02 years now. While the Supreme Court ban was helpful, the recent announcement by the government on imposing tax implications is a relief. In the recent budget announcement, the union finance minister imposed a 30% tax on crypto gains.
Are you interested in investing in cryptocurrency?
All said and done, the important question remains. Should you start or continue your cryptocurrency investment. Investing in gold has always provided a sense of responsibility and confidence in every Indian. Gold has always taken a secured position in the global market against price inflation. A similar feature goes for cryptocurrencies as well. Despite the price volatility and market fluctuation cryptocurrencies can provide a promised rate of returns to their investors. Almost all cryptocurrencies currently available in the market are performing well and have provided their investors with lucrative returns.