Global Crypto Market

The evolution of cryptocurrencies in India and what the future looks like – Times of India




We use cookies and other tracking technologies to provide services in line with the preferences you reveal while browsing the Website to show personalize content and targeted ads, analyze site traffic, and understand where our audience is coming from in order to improve your browsing experience on our Website. By continuing to browse this Website, you consent to the use of these cookies. If you wish to object such processing, please read the instructions described in our Cookie Policy / Privacy Policy.
Interested in blogging for timesofindia.com? We will be happy to have you on board as a blogger, if you have the knack for writing. Just drop in a mail at [email protected] with a brief bio and we will get in touch with you.
Srinidhi Moodalagiri, Cofounder, flippy
For decades, investments have been limited to assets such as real estate, gold, bank deposits, and stocks. Over the past few years, a new investment asset class is making everybody take notice – cryptocurrency. This latest form of asset has been doling out good returns for its investors, promises to disrupt the monopolistic tech ecosystem and now everybody wants a piece of this action. The total global crypto market value now exceeds $ 2.12 trillion, with a daily global trading amount of more than $100 billion. But before you decide to dive in, it is best to understand this investment avenue better.
Most cryptocurrencies are backed by a technology called ‘Blockchain’, which is the most impactful innovation in recent years. Blockchain helps cryptocurrencies with two primary things: it maintains a list of all transactions of a particular cryptocurrency (called ledger), and it assists in “minting” more of that cryptocurrency based on predefined mathematical rules. While this process seems pretty straightforward, blockchain helps us do both without a trusted intermediary in between. This means that there is no central bank that is issuing these cryptocurrencies or securing your transactions, all of it happens seamlessly on a digital ledger!
Regardless of whether you trust the technology, it has become a global phenomenon over the last decade. Let’s dive deeper into how this technology has impacted the Indian economy and the future plans and outlook for cryptocurrencies.
History of Cryptocurrency and its evolution
Cryptocurrency emerged in India for the first time around 2009 in the form of Bitcoin. The first commercial transaction occurred in 2010, followed by the first cryptocurrency exchange in 2013. It has garnered a significant following and interest in India over the past few years. Industry estimates that there are 15 to 20 million crypto investors in India, with total crypto holdings of around 41 thousand crore rupees ($5.37 billion). 
This growing popularity has been attributed to several factors, including India leading the world in terms of growth in adoption of the internet, and the country’s burgeoning tech industry along with tech-savvy millennials providing the right consumer segment for cryptocurrencies. Several blockchain based games have emerged in recent years. These games offer gamers from tier 2 and 3 cities to earn lakhs of rupees every month by just playing those games and unlocking rare items in these games. Another contributor to the increase in cryptocurrency is huge transaction volumes on peer-to-peer (P2P) platforms. They also can be transferred across borders without having to go through any third-party institutions. Needless to say, most people see them as an alternate investment opportunity to the traditional ones like stock exchange and mutual funds with value increase in the future.
India’s Role in the Crypto Market
India has been particularly active in the cryptocurrency market. In fact, according to several research analyses, India is home to the highest number of crypto owners and second in terms of adoption rate. More than 60 per cent of states in India are emerging as CryptoTech adopters, with over 15 million retail investors. Additionally, there is a strong institutional presence in the country, with nearly 230 start-ups in this space, presenting plenty of growth potential and opportunities. 
The Indian tech ecosystem is buzzing with hungry entrepreneurs and a top tier talent pool, even from a global standpoint. If the ecosystem continues to grow in the same direction as the past few years, India is well positioned to be a global leader in this space.
For cryptocurrencies to gain ground and acceptance, a concerted effort on the part of institutions and regulators alike is needed to educate the public at large regarding the opportunities it offers to our country. Thankfully, many institutions have already undertaken this task and are making good progress. 
What is the Government Doing to Regulate Cryptocurrencies?
In India, the government is taking a cautious yet determined approach to regulating cryptocurrency. The Reserve Bank of India (RBI) has issued warnings against the risks associated with virtual currencies and has urged people to exercise caution before investing in them. However, the government also recognizes the potential benefits that cryptocurrencies could have for the country’s economy. 
The finance minister has also introduced ‘Digital Rupee’, based on blockchain technology with the aim of reducing the country’s dependency on the traditional cash system. While announcing their plans to launch a digital currency, the government also imposed taxes on virtual assets at 30 per cent which although high, paves a path towards recognition of cryptocurrencies as an asset class.
What are the Future Opportunities for Cryptocurrency?
Cryptocurrencies are slowly but surely gaining ground in India. Millennials from tier-2 and tier-3 cities are jumping onto the crypto bandwagon. Although men have ruled this space, women’s participation in crypto trading has grown by over 1000% in recent years. 66% of all users are still below 35 years of age, which shows the higher adoption rate of crypto among the youth of the country. 
Gen Z and millennials are big investors in this space and will continue to be due to the skepticism towards banks and financial institutions, the thrill of volatility, and the availability of digital technology and digital sources of information. P2P platforms have contributed to the substantial adoption of cryptocurrency by the tech-savvy generation. Growing mainstream acceptance of cryptocurrency will also fuel future penetration into more niche segments of the population.
Although there is still uncertainty about regulations, the government has shown signs of recognizing the potential of cryptocurrencies. Crypto definitely seems to be the future.
But is it safe to trust this technology to power billions of dollars worth of transactions? 
{{C_D}}
{{{short}}} {{#more}} Read More {{/more}}
Views expressed above are the author’s own.
RIP secularism. Let’s try a Hindu democratic republic of India (T&C apply)
Mosques + Temples = Mosples: Controversies like Gyanvapi can be avoided if Hindus and Muslims together celebrate their conjoined past
The making of new India: Union home minister, writing on eight years of Modi government, argues the country is stronger & better-respected
For J&K peace: Targeted killings can only be countered through full resumption of political process. Hold assembly polls soon
Eight years later, taking a measure of Moditva
Pawar of the ‘past’ versus Pawar of the ‘present’
Why Kashmiri Pandits should be investing in life beyond Kashmir
Choose sides: China-Russia military exercise near Quad meet heralds a new Cold War
The Aryan lesson: Cops can’t defame, courts must follow evidence
Price of wrong price strategy: Growth is low, inflation is high and GoI is doing RBI’s job – potential recipe for crisis
Interested in blogging for timesofindia.com? We will be happy to have you on board as a blogger, if you have the knack for writing. Just drop in a mail at [email protected] with a brief bio and we will get in touch with you.
Swaminomics
City City Bang Bang
The Underage Optimist,TOI Edit Page
Chennai Talkies
Copyright © 2022 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service

source


Leave a Comment

Your email address will not be published.