From gold to crypto, Indians seem to be changing preferences

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The cryptocurrency space in India has witnessed a revolution over the past two years. Despite regulatory ambiguity and extreme volatility, millions of Indians prefer to invest in cryptocurrencies rather than gold. Almost 15 million Indians have invested in cryptocurrencies.

According to a statement from Chainalysis, “In India, where households own more than 25,000 tonnes of gold, crypto investments have grown from around $ 923 million in April 2020 to nearly $ 6.6 billion in May 2021. “. This represents an increase of almost 612% in the number of cryptocurrency users in our country. India’s largest crypto platform, CoinSwitch Kuber, has onboarded nearly 6 million active users since its inception in June 2020. A shift in mindset

This massive surge in cryptocurrency growth is set against a backdrop of ambiguity. While the future is still uncertain for digital currencies, the government is starting to realize that technology could be far more important than the economy of the currency itself.

Earlier in 2018, just as the crypto fire was lit in the country, the government delayed it by introducing a blanket ban on banks preventing them from facilitating crypto transactions. This stemmed from the fear that crypto anonymity would give way to fraud and underworld activity.

However, in May 2020, the Supreme Court overturned the ban saying there was no reason to place such a ban on cryptocurrencies.

With this statement, the cryptocurrency spark was rekindled among Indians. Weeks after the RBI’s blanket ban was lifted, Indian investors rushed to make the most of their wasted time. Since then, the volumes of traders and exchanges have seen a drastic increase month after month.

ET Spotlight Special The Virtual Boom Amid Regulatory Uncertainty As equivocation and resentment against cryptocurrencies fades in India’s largest cryptocurrency – Bitcoin, is quickly becoming a favorite for Indians who have always been known to be ardent investors in gold. Indians are now catching up to the 23 million crypto users in the United States and well beyond the 2.3 million crypto users in the United Kingdom. Experts say the growth of cryptocurrencies in a country like India is fueled significantly by young people between the ages of 18 and 35. most of whom are first-time investors.

International organizations are hiring young back-end engineers as more entrepreneurs accept cryptocurrency payments as it makes the whole international transaction process much easier and less time consuming.

Older people and women are also entering Another development in the Indian crypto space is that the elderly and women are also entering this very volatile market.

Ashish Singhal, CEO and Founder of CoinSwitch Kuber, the world’s largest cryptocurrency platform, said: “Seniors, too, are becoming more tech savvy and don’t see anything strange about allocating their money. savings to assets via swipes on their phones in an effort to diversify their investment mix.

He added, saying: “What is interesting is that their activity corresponds to young people.” CoinSwitch Kuber has seen an almost 35% increase in the number of investors over 45 in recent months.

The crypto space in India now includes over 15% female investors. Data suggests that in the past year alone, the number of female investors has increased by nearly 1,400% across all markets. However, it should be noted that this positive increase in female crypto users is not only centered in India and is spreading across the world in stronger economies such as the United States.

New impetus for the crypto industry Not only are retail investors interested in a slice of the Indian crypto pie, but many foreign funds are flocking to the newly established cryptocurrency platforms being set up in India .

CoinSwitch Kuber is one of the few crypto exchanges operating in India. Recently, in a Series B round, the startup raised $ 25 million from a reputable VC named Tiger Global for a valuation of $ 500 million.

Industry estimates indicate that India may hold a potential investor base of 10 crore and more as cryptocurrencies become more lucrative.

AND Spotlight Special An alternative to gold? Gold has always been the most popular investment in India. However, data from the World Gold Council suggests that adults under 34 are less attracted to gold than older, more traditional Indians.

While the Indian cryptocurrency market is still a fragment compared to its holdings of gold, it is clear that its popularity is increasing in the subcontinent. According to CoinGecko, the four largest cryptocurrency platforms in India, including CoinSwitch Kuber, have seen their daily transaction volume jump from $ 10.6 million a year ago to $ 102 million today.

The growing adoption of cryptocurrencies is another sign that the Indian mindset on investing is rapidly shifting from very conservative to more open to new markets and opportunities.

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