What is driving crypto demand in India?

The adoption of cryptocurrencies has been rapidly gaining momentum in India despite the uncertainty about the future of an unregulated digital asset. Cryptocurrency investments, particularly Bitcoin, have seen an impressive surge in India since 2020. At least 1.5 million Indians have invested in Cryptocurrencies, suggesting strong growth for Cryptocurrencies in a country. The growing number of cryptocurrency users also suggests a shift in the investment paradigm, driven mainly by the country’s younger population. 

Why Are More Indians Moving To Cryptocurrency? 

More Indians started investing in cryptocurrencies from 2020 when the Covid19 pandemic led to a global economic crisis that resulted in increased volatility and devaluation of traditional assets such as currencies, bonds, and stocks. As a result, more people around the world started investing in cryptocurrencies, leading to a sharp surge in cryptocurrency valuations in 2020, led by popular virtual currencies like Bitcoin (BTC) and Ether (ETH). 

Will more Indians join the cryptocurrency race? 

Many Indians are keen to invest in cryptocurrencies but are concerned about the uncertain future of the asset in the country, but data from domestic cryptocurrency exchanges suggest healthy growth in the number of investors. ZebPay, Coin Dealings, CoinDCX, and other crypto exchange platforms have seen massive growth in private investors on their platform since 2020. 

While there is uncertainty about the cryptocurrency ecosystem in India, the global currency exchanges are finding it difficult to ignore the growth potential in a country with 1.3 billion people.

Cryptocurrency In India 

At least 1.5 million Indians own cryptocurrency. Cryptocurrency investments in India grew rapidly to $ 6.6 billion in May 2021. Indians aged 18to 35 are mainly driving cryptocurrency investments in the country India ranks 11th out of 154 countries. 

Cryptocurrency Exchanges feel that Indians want to invest most in digital currencies but are concerned about the future Global cryptocurrency exchanges have invested heavily in India despite uncertainties. Instead of buying expensive cryptocurrencies like Bitcoin and Ether, investors are investing their money also in cheaper virtual currencies such as Litecoin, Polkadot, Cardano, Dogecoin, Chainlink, Solana, UniSwap, and more. 

All Eyes On Government Crypto-Bill 

Cryptocurrency trade has been booming in India for the past two years and there is room for better growth, but there is one major obstacle. Regulatory uncertainty is still large as the government is yet to release the Cryptocurrency Bill. All eyes are on the Cryptocurrency Bill and Currency Regulation Digital Officer 2021 as these will determine the future of virtual currency trading in the country. 

Cryptocurrency exchanges believe that early adoption of digital forex trading will help India gain an advantage in rapidly growing globalization. They also believe that once the government clarifies this issue, more people will start investing in Cryptocurrencies.

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