In their portfolios, Indian investors are gradually allocating a separate spot for cryptocurrency investment.
Since its inception in 2009, Bitcoin has had a tumultuous trading background. In November 2013, when one bitcoin was trading at about $1,124, the first price increase occurred. Four years later, in late 2017, the virtual currency reached new highs of about $20,000, setting a new milestone. It reached a new high of Rs 50, 40,806 on April 19, 2021. In the past, bitcoin has surpassed gold as the go-to reserve asset, and it is predicted to do so again.
Bitcoin, blockchain, and cryptocurrency in general are becoming more common in India. The country has triumphed as the world’s largest remittance market, with remittances reaching $100 billion in 2015. As a result, it is one of the most active cryptocurrency markets.
Investors from India are interested
Indian investors have been increasingly showing interest in funding the cryptocurrency markets, especially bitcoin, as they recognize the potential of the growing sector. Although short-term traders seeking quick gains account for a small portion of the sales volume, the trend is largely driven by long-term investors who have recognized the value of the cryptocurrency and want to hold it for years, if not decades, to reap maximum benefits.
Bitcoin is one of the most well-known cryptocurrencies, and it is famous due to its trustworthiness, credibility, and ease of use. Because of the numerous advantages of being a decentralized, digital, and impossible-to-forge currency, industry analysts have dubbed it ‘Money 2.0.’
According to CNBC, the cryptocurrency industry is still in its early stages, and it was only recently that it experienced enormous growth and surpassed $2 trillion, with bitcoin accounting for more than half of the market.
In their portfolios, Indian investors are gradually allocating a separate spot for cryptocurrency investment. They keep an eye on the market and, as a result, spend even more because they believe it is one of the safest and most appropriate investment opportunities. The Indian investment group has repeatedly expressed its desire for a proper regulatory structure and regulatory framework for full-fledged cryptocurrency operations in India.
Effect of a Pandemic
Last year’s pandemic not only changed our lives, but it also shifted the cryptocurrency sector. Prices fell, but the downturn didn’t last long, and it finally turned into a boon for the cryptocurrency industry. Despite all the uncertainties, the market began to expand during the lockdown, and it is currently booming.
A fresh boost in crypto market after Supreme Court decision
The RBI’s prohibitions on the use of cryptocurrencies were lifted by the Supreme Court in March 2020. This boosted the cryptocurrency market in India. During the upturn in the markets, many investors switched to cryptocurrencies as a safe haven.
Despite the fact that the cryptocurrency industry faces a number of obstacles on its way to maturity, investor interest appears to be growing over time.
Many questions, ifs, and buts have been raised about cryptocurrencies and their viability in the Indian market. Predicting what will happen next in such a competitive and ever-changing industry is difficult. Although new investors are eager to learn about the best time to invest and the potential long-term benefits of doing so, given the market’s current development, it appears to be a good choice for investment in general, and its future, for the time being, appears promising.