Gold losing its Shine, While Young Indian Investors Join the Ongoing Crypto Hype
Crypto investment in India – a country with more than 25,000 tonnes of gold – increased from about $200 million to $40 billion last year, a huge increase in demand among young investors, the report said Bloomberg.
According to the report, the growth of crypto in India comes from the age of 18-35 years. The latest World Gold Council data show that Indian adults under the age of 34 have less appetite for gold while compared to older consumers.
CoinGecko data show that the daily trading volume of the four largest crypto exchanges in India has increased from $10.6 million to $102 since last year.
“It is easier for them to invest in crypto than gold because the process is much easier,” said Sandeep Goenka, co-founder, and regulator of ZebPay, which has spent years representing the industry in negotiations with the government. “You go online, you can buy crypto, unlike gold you don’t have to check it.”
Traditionally, gold has been a safe haven to store money in the event of a recession. This time is no different. The price of the excellent yellow metal in the risk-to-reward ratio has risen sharply since March.
For starters, Mukherjee warned that India does not yet have clear restrictions on cryptocurrencies and may face regulatory challenges, including a previous blanket ban.
The report said that more transparency and creativity were the reason for investors to lean towards cryptocurrencies.
Despite regulatory uncertainty in the country, enthusiasm for crypto has increased. The Reserve Bank of India has recently clarified that the Supreme Court has blocked the 2018 attempt to ban banks from participating in transactions related to cryptocurrency. Legislators are currently reviewing the country’s crypto-related regulations and would soon reach a good conclusion.
Related: RBI Notification On Virtual Currencies Hint Of Cryptocurrency Future In India?
However, the authorities are not showing signs of accepting cryptocurrencies. The country’s central bank said it had “big concerns” about the asset class, and six months ago the Indian government proposed banning the trading of digital currencies – but remained silent on the matter.
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