It looks like the uncertainty and the regulatory talks of a crypto ban have little affected Indian crypto investors. Indians, popular as one of the biggest holders of Gold and now happily giving up their obsession for the yellow metal to buy more Bitcoin and Gold.
It is clear that Bitcoin, the digital gold, is emerging as a popular choice among next-generation investors. Well, we all know how Bitcoin offers better liquidity in comparison to holding and storing physical Gold.
Over the last year, the total investment exposure to digital assets from Indian investors has grown from $200 million to now at $40 billion, reports Bloomberg citing data from Chainalysis. This is a staggering 200% growth and comes despite all the crypto hostility from the government and the central bank.
The publication cites a story of a 32-year-old lady entrepreneur Rich Sood who liquidated her Gold assets worth 1 million INR and moved it to crypto. Sood reportedly invested that amount in Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).
Navigating through the boom and bust cycles this year, Sood cashed out some of her crypto holdings in February when BTC went above $50,000 and bought once again amid the recent correction. Speaking to Bloomberg, Sood said:
“I’d rather put my money in crypto than gold. Crypto is more transparent than gold or property and returns are more in a short period of time.”
Navigating Through the Crypto Ban Barriers
One of the biggest barriers that Indian crypto investors could be facing is the possibility of a China-like blanket ban. The government and the RBI have hinted several times about their discomfort with digital assets, however, there’s been no specific action so far.
This looming uncertainty from lawmakers has served as a barrier to entry for many Indian investors sitting on the edge. “I am flying blind,” said Sood. “I have a risk-taking appetite, so I’m willing to take a risk of a ban.”
On the other hand, the growing adoption of digital assets by Indians shows their willingness to take risks. A majority of these Indian crypto investors come from the age group of 18-35. Sandeep Goenka, who co-founded ZebPay told Bloomberg that the easy liquidity that crypto offers over Gold is more attractive to Indian investors.
Moreover, several Indian investors are playing the crypto game silently with the regulatory uncertainly. An unnamed banker said that, with no proper tax rules for crypto in India, he’s willing to play the crypto game without much noise and avoid the taxmen at his doors.
The post Indians Are Happily Giving Up their Gold Obsession for Bitcoin (BTC) & Crypto appeared first on Coingape.
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