Why are cryptocurrencies so popular in India?
The demand and popularity for cryptocurrencies have grown steadily In India and here are some of the reasons why cryptocurrencies are so popular:
1. No Human Involvement
Cryptocurrencies are great and most preferable for online international transactions without any glitch whatsoever. Since it is a digital currency that is decentralized, there wouldn't be any need to go through any government body when participating in any international financial transaction.
It fosters any business interaction without the interference of any government body, which has been one of the issues some businesses face when they go international.
With cryptocurrency, all of the worries of being denied access to some funding due to government regulations, do not apply. This has made it a kind of currency to be reckoned with all over the world.
2. Ease of use and transparency
In the monetary markets, cryptocurrency has identical dynamics as equities. Since the costs of cryptocurrencies are also being traded within the market, there may be a possibility for humans to make investments and have interaction in arbitrage as they make use of blockchain technology. This is because it gives better returns compared to different investments, making a lot of people tap into the advantages of crypto.
Its usefulness has birthed different startups and has made different companies to develop software programs for the blockchain for use in this digital age. This has delivered and encouraged recognition and acceptance of crypto in the digital society.
3. Secured transaction
Many professionals identify cryptocurrencies and the blockchain as truly unhackable. Since cryptocurrency runs on what we call the blockchain, one of the majorly acknowledged blessings of cryptocurrency is the prevention of fee scam, as data is available to everyone, encouraging transparency.
With a shared ledger, it fosters immunity to any sort of tampering; all data shared is accurate and updated each second. This reduces any possibility to duplicate fraud. Furthermore, as soon as affirmation is finished on a cryptocurrency transfer, the transaction may not be reversed, unlike credit cards wherein there are hacks attached.
This is a safety measure in opposition to fraud, which shows that there is proper management of transactions without any third-party interference and manipulation. Not to omit that, it does protect the identity of the person making the transaction, which further justifies the fact that it is unhackable.
4. Speed of transaction
Cryptocurrency has been verified to be a very fast means of transaction, as fast as light. It can also do multiple transactions at a time without any mix-up whatsoever. For this reason, people have adopted this method of transaction, as it makes the business move as quickly as possible.
The rise in acceptance of cryptocurrency has been ground-breaking, and it keeps soaring as the best means of transaction in this digital age. This has given rise to conclusions that it is the future of currency, which is currently growing, and will most likely be so. However, there have been different debates about the rules and criteria governing the operations of this "unique" kind of currency.
Are cryptocurrencies legal in India?
As cryptocurrency's usefulness kept rising in China and spreading through all of Asia, India, as a country, has been actively using it as one of the major means of the online transaction. Just when the acceptance of cryptocurrency was peaking in the country, India's federal government planned to ban trading in this currency.
The Reserve Bank of India (RBI) is specifically worried about investors' protection. It is worried about the anonymity of cryptocurrency transactions and the lack of intrinsic values of the currency, as they are not backed by assets.
This might allow for a new level of scamming and internet fraud, the government feels. Moreover, as more transactions keep happening in the country and internationally, there can be more use cases that can boost cryptocurrency's intrinsic value.
While the RBI banned commercial banks from servicing to crypto traders and exchanges in 2018, India's Supreme Court overruled the ban in march 2020 after much solicitation, and it happened just when the coronavirus pandemic hit the world.
During this period, most parts of India were faced with lockdown and movement restriction. This is a sense that fostered the sharp growth in the use of cryptocurrency in the country again.
Crypto exchange
Crypto exchange was reported to have grown over 10 times as it used to be giving a 47% growth for Q1 2020. More so, the United States-based crypto market exchange liaised with that of India, giving access to crypto-to-crypto conversion and trading services from April. A lot of investors found safety in digital currency as traditional assets declined due to the coronavirus pandemic.
Regardless of all of this growth, in June 2020, the government reconsidered banning cryptocurrencies based on a report that was moved by the finance ministry for inter-ministerial consultation. However, the crypto exchange executives reverted that cryptocurrencies can be regulated as commodities, and the nation will suffer rivals from business, traders, and enthusiasts based on their constitutional rights.
Top 10 cryptocurrencies by market capitalization
