bitcoin

The COVID-19 pandemic has spurred a once-in-a-decade influx of more than expected new retail investors into India’s stock market. This has grabbed many eyeballs and has garnered attention too.

With excessive time and savings in their bank accounts, the Indian retail investors try to knack the benefits of profitability in the equities.

However, equities weren’t the only class of asset they are chasing. They also seem to have been minting money in terms of Bitcoin. As soon as the pandemic had hit the country, there was a huge surge of investors exploring the concept of blockchain technologies.

People tend to explore different cryptocurrency exchanges as well as Bitcoin exchange in India.

Impact of Lockdown

Those people who were sitting ideal at home owing to lockdown were exploring new skills and opportunities out there. Cryptos, in that case, emerged as one of the best options as well as the top performer.

The trading volumes shot up to over 1000% last year. Not only this, the user sign ups always grew about 4 to 5 times with new people doubling the sign up for months to come.

Different Cryptocurrency Platforms And The Raise

WazirX, which is one of the transparent Bitcoin exchanges in India, presently boasts about a million user accounts in India. The exchange boasts about 70% of its users, less than 34 years.

For getting another perspective, new Demat accounts were opened in India which almost grew 17% between April and November.

This is one of the fastest paces of the opening of new Demat accounts in the history of the capital market domain. Bitcoin and several other cryptocurrencies have had a profitable run since the global financial market shrunk in March 2020.

Bitcoin has grown close to 700% in price terms since April, Ethereum by 730%, and the popular Yearn Finance token by 32 times. Being the largest cryptocurrency, Bitcoin saw investors hitting a record near high at $42,000 on January 8 and then tumbling to a real low around $30,300. These price swings made nostalgic memories of Bitcoin’s 2017 bubble, followed by the insane collapse.

What Do Investors Need To Understand?

Sceptics have already warned investors not to go too deep into the crypto asset, as they are too volatile in terms of prediction. Also, the occurrence of the “Ponzi Scheme” is a major concern for investors to look upon.

But this time the point to be noted is that the profile of the investors trading in the Bitcoin exchange is quite different from the ones who participated in the breakout rally of Bitcoin in 2017.

Several crypto backers also stated that Bitcoin is fast maturing and converting into a hedge against dollar weakness along with the inflation risk, attracting long term investors.

In 2017, it was more about investors getting into trouble overnight. However, today, it is all about a mature set of investors who stayed back to explore the entire cycle.

Also Read: How to Set Up a Crypto Wallet

The pandemic along with the rally of cryptocurrencies had a prime role in rewarding interest to the investors. This seems to be one of the reasons why RBI was adamant to ban the use of trading of Bitcoin. Later on, SC lifted it with a question mark over the legality of the cryptos.

What Does The Future Hold?

While investors have embraced SC’s decision of lifting the ban. Some like Bitcoins have still associated challenges in terms of regulations along with allegations of money laundering.

At present, there is no formal regulation about the same. However, as per blockchain technology is concerned, the future seems to indulge in innovative technologies.

With the government’s stance being unclear, several cryptocurrencies platforms are taking steps for self-regulation through customer-centric protocols.

Therefore we can summarize that Indian investors are rightly infatuated with the rise of Bitcoin and are exploring ways for adopting this innovative technology for future benefits.

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I am Lara Slowik, I have done my bachelor’s in English literature, and further on I did my master’s in Medicine. My most preferred genre of writing is health and biotech, Entertainment. I have been writing from the past 6 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 2 years. I use to teach business and technical writing in a very famous university. However, most recently! i am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to nature. A part from all this I enjoy exploring the world and traveling makes me happy.

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