Bitcoin has had a volatile trading history since its creation in 2009. The first price hike occurred in November 2013 when one bitcoin was trading at around $1,124. Four years later, in late 2017, the virtual currency touched record highs of approximately $20,000. On 19th April 2021, it recorded a new high of Rs 50,40,806. The cryptocurrency has also surpassed gold in the past and is expected to be the go-to reserve asset solution.
India is increasingly adopting bitcoin, blockchain, and cryptocurrency on the whole. The country triumphs of being the highest remittance market as it grew to $100 billion in 2015. This makes it one of the thriving markets for cryptocurrencies.
The country possesses the world’s largest IT population and is also one of the growing smartphone markets. As a byproduct, e-commerce players and online payments are also rapidly growing. This has also led to the increased awareness levels and curiosity about cryptocurrencies. E-commerce players might increasingly adopt cryptocurrency as their payment gateways.
Understanding the potential of the growing market, Indian investors have been increasingly showing interest in funding the cryptocurrency markets, especially in bitcoin. While a small part of the sales volume is from short-term traders who are seeking instant profits, the trend is primarily driven by long-term investors who have understood the value of the cryptocurrency and want to own it for years and even decades to reap optimal benefits.
Bitcoin is one of the most recognized cryptocurrencies and is preferred owing to its reliability, credibility, and feasibility features. It offers various benefits of being a decentralized, digital, and impossible-to-forge kind of currency which has led to industry experts terming it ‘Money 2.0’.
Presently, the cryptocurrency market is still in its primary stages and it was just recently that the market exhibited tremendous growth and reached $2 trillion, with bitcoin accounting for over 50% of the cryptocurrency market, as reported by CNBC.
Indian investors are increasingly allocating a separate place for cryptocurrency investment in their portfolios. They keep an eye on the market and hence invest all the more considering it to be one of the most protected and suitable investment options. The domestic investor community has often expressed its desire for having a proper regulation and framework for full-fledged working of cryptocurrency in India.
It was in 2010 when bitcoin received a cash value for the first time when a customer swapped 10,000 bitcoin for two pizzas. Eventually, other currencies were introduced and the market flourished in the subsequent years. Ever since then, it started gaining popularity and while it did experience a few dips, the market has been proliferating to the extent that it will be the ideal investment choice and will be preferred over gold in the coming times.
While the pandemic disrupted our lives last year, it did upturn the cryptocurrency market as well. Prices experienced a dip but the distressed times didn’t last too long and it eventually turned out to be a boon for cryptocurrency industry. The market started growing during lockdown and presently, despite all uncertainties, the sector is booming.
In March 2020, the Supreme Court removed restrictions imposed by RBI on the usage of cryptocurrencies. This gave the crypto market a fresh boost in India. While the markets were upturned, many investors resorted to cryptocurrency amid lockdown.
Even though the cryptocurrency market faces various challenges in its growth trajectory, investor interest seems to be strengthening with time.
There have been a lot of queries, ifs & buts concerning cryptocurrencies and their viability in the Indian market. Considering it is a volatile and ever-evolving sector, predicting what will happen next is indeed tough. While new investors are keen to know about the right time to invest and the possible futuristic benefits of doing so, considering the present growth of the market, it seems to be a good option investment per se and its future, for now, seems promising.
(Sathvik Vishwanath is Co-Founder & CEO of Unocoin. Views are his own)