Bitcoin: India’s new gold? Insights on crypto market.

There has been a buzz around the crypto sphere of India with an increasing cryptocurrency investment and market boom. Despite the proposed ban of cryptocurrencies, the interest in the Indian crypto market had been growing ever since. Indian investors are recognized to consider gold as a store-of-value investment. However, this is likely to shift with the changing mindset of modern generations looking forward to investing in the crypto sphere. Can we consider gold as the next bitcoin? Let us find out in this article.

Bitcoin Boat Sails Smooth In The Indian Crypto Ocean 

Crypto investments are taking off in India since the last year. Digital currency is growing popular than ever before in the Indian province, which is traditionally home to the investors of heavy metals like gold. India happens to be one of the greatest investors of gold, heavy metals, precious stones, gemstones, and more. Of late, the Indian market has been witnessing a crypto boom in 2021. Private citizens owning more than 25000 tonnes of gold in India, Indian crypto investments increased from $200 million to around $40 billion in 2021. 

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The increase of investors in the Indian crypto market has been tremendous when it comes to restrictions. Lately, the Central Bank has bestowed what some consider an antagonistic behavior toward the digital asset class. The spurt in cryptocurrency investing is noteworthy and points that several young investors are shying away from conventional platforms. 

“Young entrepreneurs and active investors would put their money in a cryptocurrency other than gold. Recently, a 32-year-old Indian entrepreneur happened to put approximately $13000 into cryptocurrencies like Bitcoin, Dogecoin, Ether. She also happened to lend money from her parents to additionally continue with her investment in digital currency. Approximately 15 million Indians presently are in the business of investing or trading in cryptocurrency,” Raj Chowdhury, Managing Director of PayBitoPro, commented.

“In the upcoming days, the Indian market is going to witness a rapid boom in the digital assets market as the number now is approximately 8 million lesser than the United States. However, it is much more than the United Kingdom,” added Chowdhury.

Indian Gold Market Is Lagging Behind

With cryptocurrency taking over the Indian market, Indian gold demands stay sluggish because of the pandemic disruptions since the last year. But, as per analysts, there is a chance of recovery highly anticipated this year. As of now, the gold demand is still sluggish. But, as the lockdown continues to ease, we hope to see some interest. Although, the onset of monsoon has already arrived. 

The current forecast highlights that rains are likely to be 101% concerning the long-term average. It should point to a solid harvest this season, hence leading to robust gold demand. 60% of the population and 40% of the working population are farmers, and they depend on this sector for their income. Gold happens to be one of the initial purchases made by farmers, and there is likely to be a pent-up demand when the adverse situation goes back to normal. 

Future Of Crypto Regulations In India 

Cryptocurrency is pretty much transparent than property or gold, and returns happen to be much more in a short time. One of the obstacles hindering wider crypto adoption is regulatory skepticism. In 2020, the Supreme Court nullified a 2018 rule outlawing cryptocurrency trading through banking entities, ending in a trading surge. However, officials show no indications of adopting cryptocurrencies. The central bank of the nation says that it has “significant concerns” about the asset class.  

The future of cryptocurrency regulation in India is uncertain as the government does not happen to say much on this topic after proposing a crypto trading ban in March. But, when it comes to Indian investors and traders, they are born with a risk-taking appetite; therefore, they seem to be willing to take the crypto ban risk as well. 

Winding Up

The growth of the crypto industry in India is extending from the 18-35-year-old group. As per the latest World Gold Council data, Indian adults below age 34 possess less appetite concerning gold as compared to older consumers. 

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“They find investing in crypto far easier than gold as the process is simpler,” said Raj Chowdhury, who is the Managing Director and founder of PayBitoPro and spent years serving the crypto industry in interviews on crypto regulation.

Over time, everyone is going to adopt cryptocurrency in the nation. Presently, the entire scenario is tough with regulation, but with time, people are going to understand its importance and have crypto overpower other markets as well. It will not take much for bitcoin to be the next Indian gold.