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Bitcoin becomes Indians dream investment

If the super cryptocurrency has made you worried, especially if you are an investor in digital coins such as Bitcoin or Ethereum, regain your composure, as there is a silver lining to the mayhem the crypto asset class witnessed last week.

Although the brief period of volatility has been generally characterized as a reversal (one Bitcoin is currently floating about $37,000, down from a record high of nearly $60,000 only a few weeks ago), market analysts believe that remaining invested and looking long-term is the best strategy for crypto investors in the nation.

India is embracing Bitcoin and other cryptocurrencies at a rapid rate. According to news, the nation currently has over one crore cryptocurrency holders, and the amount is rising daily due to the presence of many domestic cryptocurrency exchanges.

Through the Reserve Bank of India’s (RBI) reservations about cryptocurrencies, Indians are flocking to invest in what has been dubbed the 21st century’s most significant asset class.

According to Rahul Pagidipati, CEO of ZebPay, Indian investors are gaining an appreciation for Bitcoin as an asset class that should be included in every long-term portfolio.

“Indians hold fewer than 1% of all Bitcoin. Being left behind would put the Indian economy at a competitive disadvantage. In 2021, we anticipate that additional organizations and government officials may understand the critical need to close the Bitcoin divide,” Pagidipati said.

The RBI issued an order in April 2018 requiring financial institutions to cut links with entities or companies that trade with virtual currencies such as Bitcoin. However, the Supreme Court permitted banks to begin processing cryptocurrency deposits from traders and exchanges in March 2020, providing some relief to crypto investors.

Finance Minister Nirmala Sitharaman said in March that all cryptocurrency trading windows would remain open, providing additional relief to stakeholders.

Earlier this month, RBI Governor Shaktikanta Das said that the central bank has raised serious issues with the government about cryptocurrencies.

Among the uncertainty is the reality that although a 40% decline in the Bitcoin price from its all-time high seems drastic, it is common in many dynamic markets, including crypto, particularly after such a strong rally, according to industry participants.

“These corrections are mostly the result of profit-taking by short-term traders. Investors should prioritize schooling. Conduct research into the intrinsic valuation of Bitcoin, Ethereum, and other crypto-assets, much like you might until purchasing stocks,” said Avinash Shekhar, Co-CEO of ZebPay.

Buyers are aggressively amassing an increasing number of Bitcoins. This is the primary reason that has fueled the digital coin’s price rise.

According to Prabhu Ram, Head-Industry Intelligence Group, CMR, such uncertainty has been constant throughout the last decade and is consistent with crypto.

“While one might be worried in the long-term, the short-term outlook is optimistic. Bitcoin will continue to be a tiny but important part of investor portfolios in the future,” Ram told IANS.

According to industry insiders, India is a technological and economic powerhouse that will grow as a major player in crypto and blockchain adoption.

According to Sumit Gupta, CEO, and co-founder of cryptocurrency exchange CoinDCX, cryptocurrency has “now established itself as an unavoidable macro asset class for investments.”

“That would also result in a higher level of media recognition than ever before,” Gupta previously told IANS.

What do you think?

Written by Ankur J Kakoti

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