Future of Crypto in India

For the Indian middle class, gold has traditionally been seen as a safe haven commodity. The yellow metal has been a go-to option for many Indians, from wearing it as jewellery on special occasions to preserving it as an asset for future generations. Buying gold coins and jewelleries during auspicious festivals has been a long-standing tradition. Can gold, on the other hand, outperform other assets, particularly new-age cryptocurrencies, as an investment option?

Many Indian households save their gold purchases for celebrations like Diwali, which are considered fortunate. Gold has remained a safe haven against inflation because of its limited supply and high demand. However, Indians' attitudes toward investing and diversifying across asset classes have recently shifted dramatically. From the standpoint of an investor, leaving aside the religious and auspicious sentiments of gold, a new challenger to it as an asset class has emerged in the form of crypto and Bitcoin, which are being referred to as "new age gold". During this festival season, cryptocurrency has the potential to emerge as a new investment choice to fund the future. People are looking for alternate sources of money, the Internet is becoming more popular. Crypto is now seen as a viable alternative to traditional investment vehicles.

Cryptocurrency has recently acquired popularity, particularly among millennials, due to its high returns and ease of use. Cryptocurrencies have taken the financial world by storm in the last decade. Bitcoin prices reached a new high last month, surpassing the previous all-time high recorded earlier this year. Around 1.5 crore Indians have embraced cryptocurrency and invested nearly $10 billion in it. Last year, the global financial markets were hit hard by the Covid-19 epidemic, but the cryptocurrency market sailed through with its glamour and grandeur. During Covid-19's recovery era, Bitcoin was one of the fastest-growing asset classes. Over the same time span, the return on cryptocurrency was double that of gold.