Growth of cryptocurrency in india

For decades, investments were limited to assets such as real estate, gold, bank deposits and stocks. In recent years, a new asset class called cryptocurrency has been attracting attention. This newest asset form promises to bring huge returns to investors and disrupt monopoly technology ecosystems, and now everyone wants to be part of the action. Currently, the total global cryptocurrency market exceeds $2.12 trillion, with daily global trading volume exceeding $100 billion. But before deciding to dive in, it's best to better understand this investment opportunity. Most cryptocurrencies are backed by a technology called “blockchain,” which is the most influential innovation in recent years. Blockchain supports cryptocurrencies primarily in two ways:
It maintains a list (called a ledger) of all transactions of a particular cryptocurrency and helps to further "mint" that cryptocurrency based on predefined mathematical rules. While this process seems very simple, blockchain helps us do both without a trusted intermediary in between. This means that there is no central bank issuing these cryptocurrencies or securing the transactions, all done seamlessly on a digital ledger.

Believe it or not, it has become a global phenomenon over the past decade. Let's take a closer look at the impact of this technology on the Indian economy and the future plans and prospects of cryptocurrencies.

The history of cryptocurrencies and their development

Cryptocurrency first appeared in India around 2009 in the form of Bitcoin. The first commercial transaction took place in 2010, followed by the first cryptocurrency exchange in 2013. In recent years, it has gained great support and interest in India. According to industry estimates, India has between 15 and 20 million cryptocurrency investors with a total crypto holdings of around 410 crore rupees ($5.37 billion).

This growing popularity is driven by several factors, including India's global leadership in the growth of internet usage, the country's burgeoning technology industry, and tech-savvy millennials representing a crypto-friendly consumer segment. This is probably due to the following factors. Several blockchain-based games have emerged in recent years. These games offer players in Tier 2 and 3 cities the opportunity to earn millions of rupees every month simply by playing these games and unlocking rare items in these games. Another reason for the rise of cryptocurrencies is the huge transaction volume on peer-to-peer (P2P) platforms. It can also be transferred across borders without the need for a third party. Needless to say, most people see them as an alternative investment option to traditional investment options such as stock exchanges and mutual funds that will appreciate in value in the future.

India's role in the cryptocurrency market

India is particularly active in the cryptocurrency market. In fact, according to multiple research analyses, India has the highest number of cryptocurrency holders and ranks second in terms of adoption rate. Over 60% of her states in India have become crypto adopters, with over 15 million private investors. In addition, around 230 start-ups in this sector have a systematic presence in the country, offering numerous growth possibilities and opportunities.

India's tech ecosystem is teeming with starving entrepreneurs and a world-class talent pool by global standards. If the ecosystem continues to grow in the same direction as in recent years, India will be well positioned to become a world leader in this sector. For cryptocurrencies to gain traction and acceptance will require a concerted effort on the part of institutions and regulators to educate the public about the opportunities cryptocurrencies offer our country.