900% Increase in Crypto Trading Value: Is Bitcoin the New Gold for Indians?

by Farheen Shaikh  |  July 2, 2021

One of the oldest prophecies of digital currency – ‘Bitcoin is the new (digital) Gold’ – might be coming of age. 

In the past 12 months, ever since the Supreme Court of India lifted RBI’s ban on crypto trading, investments in crypto assets have soared from $200 million to nearly $40 billion. Daily crypto trading values in India are up by almost 900%, according to a report by Chainalysis. 

Why the Surge in Crypto Demand?

Amidst the ambiguities surrounding cryptocurrency regulations, the considerable jump demonstrates a shift in thinking among India’s youngest investors. 

More than 15 million Indians are now trading in some form of cryptocurrency. It compares well with merely 2.3 million in the UK and 23 million in the US. Nearly 60% of all crypto investors are between the age of 18 to 30, according to CoinSwitch Kuber, one of the 4 largest crypto trading apps in India. 

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The Future of Crypto Trade in India

Innovations in the crypto world based on blockchain technology, from fintech to education, are happening at a neck-breaking speed. As the world moves towards a more decentralized open-source future, India cannot be oblivious to these changes. 

Keeping in mind the importance of cryptocurrency and its underlying technology, the Government of India has reiterated time and again the need to come up with regulations that are more enabling than stifling. 

With stable regulations in place along with growing financial inclusion and awareness, the future of crypto trading in India will scale heights never imagined before. The present spike in trading is just the tip of the iceberg. 

Is Bitcoin There Yet, Beating Gold?

Image sourced from Pixels/David McBee. 

Historically, Indians are gold-obsessed but for the right reasons. Households in India own approx. 25,000 tons of precious metal. However, studies from the World Gold Council indicate that the younger generation is disconnected from Gold. 

The ease of acquiring, short-term returns, and technological backing make bitcoin more attractive for millennials. Moreover, as a financial asset, bitcoin has seen a meteoric rise in prices while gold has at the best managed to beat inflation in the last year. 

However, it’s too early to claim victory. Gold has something that bitcoin won’t have for a long time – price stability and millennia of history withstanding traumatic financial crises. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

 


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