If you had invested Rs 100,000 in Bitcoin a year ago, its value would have been close to Rs 1,700,000 today, 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.
More Indians are investing in cryptocurrencies despite extreme volatility and lack of funds regulationHowever, this trend is not only due to the promise of high profits. some people cryptocurrency bet on blockchain technologya well-designed trading app has attracted others. TOI spoke to a young cryptocurrency investor 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. “I like the focus on decentralization. Blockchain can solve so many problems in terms of duplication and transparency.”
Investors are aware that cryptocurrencies are not allowed for payments. To them, it's simply a bet on future technology that governments can't ignore. However, they are careful about their financial exposure to cryptocurrencies, just in case. Prohibited It 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 crypto exchanges have created for their UI/UX (user interface/user experience) makes it so much easier for users to trade. Even the big banks are simplifying what they see on screen when trading stocks. “We can't change it,” 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, working in his family business, saw his Rs 300,000 investment almost triple in less than a year.
Most of these investors have a similar strategy of buying on the push and selling only when necessary. However, crypto investors have no mechanism to resolve their grievances. “Banks continue to arbitrarily disable services to cryptocurrency exchanges, making depositing and withdrawing funds 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. “On the technical charts, Bitcoin shows a bearish trend in both the short and medium term,” said Rajendra Agarwal, technical analysis trainer and founder of Otus Investments.
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