The cryptocurrency market’s popularity vector has broken all ceilings with every realm of the financial world paying close attention to its developments. Even with all the recurring price fluctuations, the industry seems to have instilled a sense of trust amongst the public especially in nascent markets such as India.
Recent reports from the subcontinent claimed that the usually gold-obsessed Indians were pouring billions of rupees into the world of digital assets. Most of the investments came from the younger age group of 18-35, a generation that was reversing the trend set by their predecessors. Indian households contain close to 25,000 tonnes, most of which are seen as generational assets. Even in this climate, the cryptocurrency market has grown in leaps and bounds with transactions accounting for over $200 million.
Many young Indians agree that they would rather put their money into crypto than a traditional asset like gold. New traders have found out that the short-term sales and big profits made digital assets a more lucrative purchase than a majority of the options available now. The privacy and transparency aspect of digital assets was another beacon for new entrants to the market. Sandeep Goenka, the founder of Zebpay added:
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.
Despite the industry’s success, it still had some way to go before it can overtake the gold market in the country. As of now, India’s $40 billion cryptocurrency market trails behind the Red Dragon’s $161 billion. For now, the increasing adoption is another sign of Indians’ willingness to take risk within a consumer finance sector that’s plagued with examples of regulatory short falls.
Crypto’s current stardom comes a few years after the Reserve Bank of India banned transactions in the country after calling out frauds and weak legislation. The ecosystem continued to receive pushback even after the Supreme Court quashed the ban last year and made all cryptocurrency transactions legal in the country. Investors believe that over time, digital assets will be adopted by nations worldwide.