MUMBAI: If you had invested Rs 100,000 crore in Bitcoin a year ago, its value would have now been worth almost Rs 1.70 crore, even though it has fallen nearly 30% from its all-time high. By comparison, the same investment in sensex would have increased to around Rs 1.2 million.
Despite the extreme volatility and lack of regulation, more Indians are investing in cryptocurrencies. However, this trend is not only due to the potential for high returns. Some dabbled in cryptocurrencies to bet on blockchain technology, while others were attracted by well-designed trading apps. TOI spoke to young crypto investors to understand their goals, strategies and fears as 2022 continues to be uncertain.
Blockchain, a secure distributed ledger that enables encryption, has attracted the attention of many supporters. “My family faced some issues in land transfer. Blockchain can help solve these ledger management issues,” said a Bengaluru-based app developer. Cryptocurrency investors TOI spoke to did not wish to remain anonymous.
One law student said that for him, cryptocurrencies are more than an investment option. He says, “I like the focus on decentralization. Blockchain can solve so many problems in terms of redundancy and transparency.”
Investors are aware that cryptocurrencies are not allowed for payments. For them, it's simply a bet on future technology. However, they are careful about their financial exposure to cryptocurrencies in case a ban is announced. Many people said they only invest what they can afford to lose. The Bangalore-based app developer has invested less than Rs 100,000, while another investor has allocated just 5% of his portfolio to cryptocurrencies.
For others, it is difficult to ignore cryptocurrencies due to the ease of investment. “The technology that crypto exchanges have created for their UI/UX (user interface/user experience) makes trading so much easier for their users. It cannot be simplified,” the investor said.
A 26-year-old Gurgaon-based investor said he opened an account with the cryptocurrency exchange in May after seeing a TV commercial. “At first it was just for investment purposes. But once I started understanding the technology behind cryptocurrencies, I started investing more,” he said. This young man's investment of 300,000 rupees has increased his investment nearly three times.
Most investors have similar strategies. In other words, buy on the edge and sell only when necessary. However, crypto investors have no mechanism to resolve their grievances. “Banks continue to arbitrarily disable services to cryptocurrency exchanges. As a result, withdrawing funds is a nightmare,” the investor said. Lack of regulation and fear of bans have even led some Indians to shift their investments to foreign crypto exchanges. Blockchain proponents are also concerned about traps like “shitcoins” (a term used to describe cryptocurrencies without specific features or innovative qualities).
After a strong rally over the past two years, 2022 may not be a good year for Bitcoin. “Bitcoin is showing bearish trends in the short and medium term,” said Rajendra Agarwal, founder of Otas Investments.
For the latest information on encryption, please visit www.TimesDecrypt .com.
Expanding
Blockchain, a secure distributed ledger that enables encryption, has attracted the attention of many supporters. “My family faced some issues in land transfer. Blockchain can help solve these ledger management issues,” said a Bengaluru-based app developer. Cryptocurrency investors TOI spoke to did not wish to remain anonymous.
Expanding
One law student said that for him, cryptocurrencies are more than an investment option. He says, “I like the focus on decentralization. Blockchain can solve so many problems in terms of redundancy and transparency.”
Investors are aware that cryptocurrencies are not allowed for payments. For them, it's simply a bet on future technology. However, they are careful about their financial exposure to cryptocurrencies in case a ban is announced. Many people said they only invest what they can afford to lose. The Bangalore-based app developer has invested less than Rs 100,000, while another investor has allocated just 5% of his portfolio to cryptocurrencies.
For others, it is difficult to ignore cryptocurrencies due to the ease of investment. “The technology that crypto exchanges have created for their UI/UX (user interface/user experience) makes trading so much easier for their users. It cannot be simplified,” the investor said.
A 26-year-old Gurgaon-based investor said he opened an account with the cryptocurrency exchange in May after seeing a TV commercial. “At first it was just for investment purposes. But once I started understanding the technology behind cryptocurrencies, I started investing more,” he said. This young man's investment of 300,000 rupees has increased his investment nearly three times.
Most investors have similar strategies. In other words, buy on the edge and sell only when necessary. However, crypto investors have no mechanism to resolve their grievances. “Banks continue to arbitrarily disable services to cryptocurrency exchanges. As a result, withdrawing funds is a nightmare,” the investor said. Lack of regulation and fear of bans have even led some Indians to shift their investments to foreign crypto exchanges. Blockchain proponents are also concerned about traps like “shitcoins” (a term used to describe cryptocurrencies without specific features or innovative qualities).
After a strong rally over the past two years, 2022 may not be a good year for Bitcoin. “Bitcoin is showing bearish trends in the short and medium term,” said Rajendra Agarwal, founder of Otas Investments.
For the latest information on encryption, please visit www.TimesDecrypt .com.
