Many industries have benefited due to the advancement of technologies, and perhaps the greatest beneficiary of all is the financial sector. The emergence of cryptocurrencies has disrupted the industry and how! It addresses many concerns people had about financial institutions, primary among them is privacy.
Digital currencies like Bitcoin have helped shift the economic power to the people wrestling it from banks and governments. But there is more to come, here’s a look at what the future of cryptocurrency in India, especially Bitcoin, looks like in the coming years:
Boom in Trading
The Bitcoin and other currency trading are likely to explode for the following reasons.
The country is in an economic slump due to the ongoing coronavirus pandemic, and people are looking at various ways to secure their finances. The recent reduction in interest rates of fixed deposits has also generated great traction for alternate options.
The Reserve Bank of India decided to lift the ban on virtual money due to which there is renewed interest in Bitcoin trading. Some trading exchanges reported a huge volume of transactions immediately after the ban was lifted.
Experts predict that this trend, of huge volume transactions, is likely to continue even as there was a slump in Bitcoin price last month.
Great Growth Potential due to Innovations
As per a survey carried out by a Bitcoin marketplace, it was found that three out of four people who are aware of cryptocurrencies invested after the ban was lifted. The industry expects growth, and more innovations in this industry as India is considered as an innovation hub. So there is great potential for growth in all aspects.
One aspect of technology one can see many developments in the future is the IoT. This can be used to seamlessly integrate with the blockchain technology and create a more scalable and secure network. That means smartphones or other such devices can be used effectively for micro-investments.
Can become an Alternate for the Traditional Currencies
Industry experts are expecting the cryptocurrencies to replace the traditional FIAT currencies in the future. That is because digital currencies like Bitcoin have become very popular and are considered as a reliable payment option.
Investors are also getting good returns with the Bitcoin moving past the $10,000 in the US, and hence a conversion to Indian currency gives better returns than traditional currencies. Also, many businesses have started accepting cryptos as payment due to no transaction fees. All these reasons make for a good cause, for replacement of FIAT currencies by cryptocurrencies. Buy Bitcoin in India at the best rate.
Can Create Employment and Spur the Economy
India has a high unemployment rate, especially due to the COVID-19 pandemic. But as the ban on the cryptocurrencies is lifted, there will be a surge in crypto startups, which can lead to new jobs. This not only helps create jobs but can spur economic activity due to this.
Another reason to believe that the future of cryptocurrency in India is bright is because of the fact that there are as many as 300 million people who are unbanked. The cryptocurrency can be the bank for that section of the society. Unlike traditional banking, it does not need any physical infrastructure and is reachable to all parts of India.
The Rise in Trading Exchanges
The surge in interest for digital currencies means that there will be a need for reliable cryptocurrency exchanges. Additionally, there will be an increase in the number of cryptos, and hence there is a need for an efficient exchange that will have all the latest and the best cryptos available to users.
Cryptocurrencies are Enjoying the Disruptive Benefits
Early adopters of cryptocurrencies have a lot to smile about. They predicted that there would be asset scarcity, dilution of FIAT currency, etc. The current situation is all this and much more as people are getting fearful of paper money as they fear it is contagious, there have been system outages during payment transfers, and hence there is increasing support for Bitcoin and other such cryptos. Investors have become upbeat, and the price of Bitcoin is expected to go past the $20, 000 range this year. So new investors, what are you waiting for!
The economic reforms and the lifting of the ban by the RBI will see an exponential growth of cryptocurrencies in India.
Bitcoin is already popular here, and with a little backing from the government by way of formulating a system, it can become a part of the economy. Though many investors are already trading in cryptocurrencies, there are many opportunities that remain to be explored. So the future of currencies like Bitcoin in India looks interesting, to say the least.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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