India is witnessing a massive growth in cryptocurrency investments compared to last year as it crossed $40 billion.
Rapid growth in cryptocurrency compared to last year
According to Bloomberg ReportIndian investors now own $40 billion in virtual assets, a whopping $200 million a year ago.
Traditionally, precious metals like gold have been the best choice for Indian investors. However, young people are aware of the potential inherent in digital currency.
Currently, about 15 million Indians use it encryption, which is only 8 million less than the US figure of 23 million. It’s also well over 2.3 million in the UK
While the number isn’t impressive compared to the massive population of 1.3 billion, it’s still an astounding growth in a country where families own 25,000 tons of gold.
Not only the general public, but also the Indian government does not support cryptocurrencies. The Reserve Bank of India (RBI) has attempted to ban the trading of digital assets in the country several times in the past.
Related reading | How Polygon Became the Indian Tiger of Blockchain Platforms
However, last year, the Supreme Court overturned a policy established in 2018 under which banks cannot trade in digital assets.
Investments came in rushing as soon as this happened. Despite this, there is still uncertainty in the air about how the government will move forward with regards to cryptocurrencies.
Only 6 months ago the government proposed banning cryptocurrency trading. Despite all this, investments increased significantly according to the data by sequential analysis.
“I would rather put my money in cryptocurrencies than gold,” says Richie Sood, a young investor who has taken money in gold and put $13,400 in bitcoin, dogecoin, and ethereum in the past seven months.
Crypto is more transparent than gold or property and the returns are more in a short period of time.
However, due to concerns about regulation, many investors are still reluctant to put their money into digital currencies. Even many who have invested do not want to talk about it publicly because they fear that future regulations such as income taxes will be retroactive.
Bitcoin price and indian crypto market
The Indian market certainly has a lot of potential and it will be interesting to see how fast it can grow in the coming years.
China has about $160 billion around 4 times the investment that India has, and as it was evident last month, the Chinese market can significantly affect the price of bitcoin.
As Indian investments continue to grow, its market may also affect global prices. If such explosive growth continues in a huge population like India, cryptocurrencies are sure to see a benefit in the long run.
Immediately, BitcoinIts price is heading to around $34,000, up 5% in the past seven days.
BTC price rebounds after the low | Source: BTCUSD on TradingView