Volatile but lucrative, Bitcoin becomes the Indian dream investment

If mega cryptocurrency has left you nervous, especially if you are an investor in digital coins like Bitcoin or Ethereum, keep your nerves because there is a silver lining in the chaos that the crypto asset class has experienced. last week.

While the short period of volatility has been widely touted as a course correction (a Bitcoin is currently hovering around $ 37,000 after hitting a record high of nearly $ 60,000 just a few weeks ago), industry experts believe that stay invested and think long – term is the rule of thumb for crypto investors in the country.

India is increasingly adopting Bitcoin and other cryptocurrencies. According to reports, the country currently has over a crore of crypto investors, and the number is growing dramatically every day with several national crypto exchanges operating in the country.

Although the Reserve Bank of India (RBI) is wary of cryptocurrencies, Indians are rushing to invest in digital coins, touted as the most important asset class of the 21st century.

According to Rahul Pagidipati, CEO of ZebPay, Indian investors are learning to view Bitcoin as an asset class belonging to all long-term portfolios.

“Indians own less than 1% of Bitcoin in the world. Being left behind will create a strategic disadvantage for the Indian economy. In 2021, we expect more institutions and government officials to recognize that we need to. bridging the Bitcoin divide, ”Pagidipati said.

In April 2018, the RBI ordered financial institutions to form close ties with individuals or companies dealing in virtual currency such as Bitcoin. However, in March 2020, the Supreme Court allowed banks to continue processing cryptocurrency transactions from traders and exchanges, giving crypto investors a break.

In March of this year, Finance Minister Nirmala Sitharaman said that all windows on cryptocurrency will not be closed, which will provide further relief to stakeholders.

Earlier this month, RBI Governor Shaktikanta Das said the central bank had reported major concerns about the cryptocurrency to the government.

Amid the uncertainties, there’s the fact that a 40% drop in Bitcoin’s price from its all-time high seems dramatic, but is normal in many volatile markets, including crypto, especially after such a big rally, say industry players.

“Such corrections are mainly due to short-term traders taking profits. Investors should invest in education first. Research the underlying value of Bitcoin, Ethereum and other crypto assets like you might. consult a company’s information before buying shares, ”said Avinash Shekhar, Co-CEO of ZebPay.

Buyers are accumulating more and more Bitcoins aggressively. This is the driving factor that has propelled the growth in the price of the digital coin.

According to Prabhu Ram, Head-Industry Intelligence Group, CMR, looking back over the past decade, such volatility is consistent and comparable to that of crypto.

“While in the short term one can feel concerned, the long term view is positive. Going forward, Bitcoin will continue to remain a small but important investment in the investor portfolio,” Ram told IANS.

Major industry players believe India is a technological and economic powerhouse that will emerge as a key player in crypto and blockchain adoption.

According to Sumit Gupta, CEO and co-founder of cryptocurrency exchange CoinDCX, cryptocurrency has “now classified itself as a macro-asset class for investments that cannot be ignored.”

“It will lead to greater mainstream acceptance than ever before,” Gupta told IANS.

(Nishant Arora can be contacted at [email protected])


na / sdr

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Previous How Income Inequality Became a Big Issue Among Asian Americans
Next Cyprus-Egypt cabinets to meet jointly soon, foreign minister says