Although cryptocurrency has an uncertain regulatory environment in India, in just one year, the investment in these digital assets has been increased by around 19,900 percent.
While citing Chainalysis’ data, Bloomberg published a report on June 28, specifying, before the end of the fourth quarter of 2020, the crypto investment in India experienced a surge.
As per the data analytics firm, Chanalysis, during this recent time period, the total crypto investment in India increased from $200 million to $40 billion. The firm further stated that around 15 million Indians are part of the crypto industry, now.
The report by Chainanlysis explains that the Indian Supreme Court decision of revoking the Reserve Bank of India’s ban on banks, in March 2020, implied a positive impact on the crypto investors in India.
Although the blanket ban on banks was revoked in March 2020, still it has not been an easy journey for the Indian crypto industry. For the past 15 months, the regulatory body of the country has been threatening the industry of introducing new laws which might ban cryptocurrencies in India.
Recently, Sandeep Goenka, the co-founder of the Indian crypto exchange Zebpay, mentioned that even though there has been uncertainty regarding crypto-regulation in the country, the citizens, who are in the age group of 18 to 35, are still attracted towards the digital assets. In fact, they have a growing appetite for virtual currency, and they prefer to invest in it, instead, of gold.
Goenka further said, “They find it far easier to invest in crypto than gold because the process is very simple. You go online, you can buy crypto, you don’t have to verify it, unlike gold.”
According to a report, there was a time when Indians used to invest their money in gold, as they considered it to be a safe haven. Still, there are many households in the country which own over 25000 tonnes of gold, but the fact can not be denied that in the past year, the interest of individuals have been shifted to cryptocurrency. Therefore, today, the total crypto investment in India has reached near $40 billion.
Richi Sood, a 32-year-old local entrepreneur, is one of those individuals who has now chosen crypto as an investment over gold.
Since December 2020, Sood has made an investment of over $13,000 in cryptocurrency. In February 2021, as Bitcoin reached above $50,000, the local entrepreneur liquidated a portion of her investment.
While doing so, she said, “I’d rather put my money in crypto than gold. Crypto is more transparent than gold or property and returns are more in a short period of time.”