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The regulatory uncertainly in India’s crypto industry has not deterred investors from buying digital currencies such as Bitcoin (BTC) and Ether (ETH). Recent data blockchain firm Chainalysis revealed that crypto investments grew by 19,900 percent in the past year.
The value of crypto holdings by Indian investors soared to $40 billion in just one year, according to a report by Bloomberg, which cited data from Chainalysis. The figure represents a staggering 19,900 percent increase from year-ago levels when total crypto investments were valued at only $200 million.
The number of Indians who buy and sell cryptos has risen to more than 15 million. For comparison, there are around 23 million American crypto traders and just 2.3 million traders in the U.K.
While Indian’s have been known for investing in gold, World Gold Council data revealed that Indians below the age of 34 are not as excited as their older counterparts when it comes to investing in precious metal. New crypto investors come from the 18-35 years old age bracket, suggesting that younger investors are now more drawn to cryptocurrencies than actual gold.
ZebPay co-founder Sandeep Goenka suggests that the ease of transacting in digital currencies compared to gold might be a factor in younger investors’ preference for digital assets. “They find it far easier to invest in crypto than gold because the process is very simple,” Goenka. “You go online, you can buy crypto, you don’t have to verify it, unlike gold.”
One investor revealed that the potential to realize quick returns is one of the reasons that convinced her to invest in crypto. “I’d rather put my money in crypto than gold,” 32-year-old entrepreneur Richi Sood said. “Crypto is more transparent than gold or property and returns are more in a short period of time.”
Since December 2020, Sood invested over 1 million rupees ($13,400) into Bitcoin(BTC), Ether (ETH), and Dogecoin. She was able to cash out a part of her crypto holding in February when BTC traded above $50,000 and even bought the dip during the recent pullback.
However, Sood admitted that investing in crypto is risky especially with rumors that the government might ban crypto trading. “I am flying blind,” she added. “I have a risk-taking appetite, so I’m willing to take a risk of a ban.”
