As India’s Supreme Court lifted the ban on cryptocurrencies, the industry has observed an unusual boom. The ban was forced by the country’s central bank, the Reserve Bank of India. According to many experts, India Is Going To Become The Next Major Focus For Bitcoin and other cryptocurrencies.
India has been in the news for forcing the world’s biggest ‘COVID-19 Lockdown’. Nearly 1.3 billion people placed under total curfew for around sixty days. However, also though all financial activity came to a virtual standstill, the crypto business went into overdrive.
In this article, we will look at some aspects of why cryptocurrencies are going to boom in India. We will also look at whether India has what it takes to emerge as the next crypto hotspot in the world.
India: The Coronavirus Pandemic and the Bitcoin Boom
In March 2020, the Supreme Court of India sought the central bank to the task and lifted the ban over cryptocurrencies. This lifted the ban on crypto banks, markets, and trading platforms. Post the lifting of the ban, anyone in India was legally authorized to buy, sell, or trade-in various cryptocurrencies.
It is safe to say that Bitcoin is the most inquired after and traded crypto in India. Analysts and experts feel that this is whereby it is going to be for the next few years. When the ban was lifted, the Coronavirus lockdown occurred.
While most businesses and industries stopped to a crashing halt, the crypto exchanges saw record numbers. According to the CEO of India’s supervising crypto exchange, trading rates increased by over 870%!
Experts feel that the lockdown gave people the time to read up on crypto and do their analysis. They also feel that the financial crash of the stock market affected the investing frenzy. People saw their hard-earned investments disgrace because of the lockdown. This made them look for alternative avenues of investment.
Why Indians want to invest in Cryptocurrencies like Bitcoin
The Government of India has strict laws to prevent Indian retail investors to trade stocks on global businesses. For example, if you are a person in India who wants to buy stocks or shares of American organizations on the NYSE, you cannot do the same.
Likewise, retail investments in Indian corporations is also severely regulated. The lifting of the ban on cryptocurrencies is the first event retail investors have to mesh with a truly global financial currency.
This is one major purpose why as soon as the ban was lifted; the country saw a crypto boom of varieties. Many Indians, who had chosen up early stocks in Bitcoin in late March, were able to duplicate and treble their profits within a small period. The Bitcoin Bull Run started in late April and early May.
News spread fast and many Indians who were earlier skeptical saw the doubling and trebling happen in presence of their eyes. This made them want a piece of the action. With a falling stock market and the lifting of the ban, it was only natural to dump one in favor of the other.
Is India an isolated incident of the booming Cryptocurrency Industry?
In a recently published report, it was found that nearly 5% of the UK’s entire population owns or at some point has owned crypto. Bitcoin continues to be the ideal here as well. According to the FCA, UK’s Financial Regulator, nearly 2.6 million people in the UK have engaged with cryptocurrencies at some level.
The report also found that the knowledge and awareness of cryptocurrencies have also significantly improved. For example, as compared to 58% of people who had not heard of crypto before the number has now reduced to 27%!