Gen Z to lead the surge of cryptocurrency in India
Autored by Ramalingam Subramanian, Head of Brand & Communications, CoinDCX
The crippling of the Indian economy’s burgeoning strides owing to the Sars Cov 2 pandemic this decade has resulted in positive posturing by the government towards bitcoins, blockchains and cryptocurrency. Market sentiments are on an upswing after pragmatism shown by the Indian Finance Minister after the 2018 Reserve Bank of India’s rule banning trading in cryptocurrency which was later overturned by the Apex Court.
The RBI is expected to test waters into the ‘crypto-world' with its own digital asset expected on the blockchain network. A policy on the anvil by the North Block will encourage investors to make a beeline for digital currencies as it will bring in ‘structure’ and ‘processes’ for the same. This would also open new channels for conducting business rather than venturing through the fiat money route which is time-consuming and involves several third parties.
Sectoral boost for India’s Fintech
Developed nations who had misconceptions on trading in cryptocurrencies like Bitcoins, Litecoin, Ethereum, etc. have set aside their apprehensions and have taken progressive steps towards incorporating them through legislation. This has led to an increase in Fintech companies’ on-boarding these digital assets in their portfolios along with entrepreneurs and individual investors who have been handsomely trading in cryptocurrencies. The Indian government, too, aided with the Fintech boom, is optimistic to let the sector find its roots and showed receptiveness to changing norms of trading and investing in the industry.
Cryto asset enthusiasts such as Elon Musk-CEO of SpaceX & Tesla, Jeffrey Bezos-Founder, CEO & President Amazon, Sam Bankman-Fried - the wealthiest billionaire in the cryptocurrency world, the Winklevoss brothers, among others have all tasted humungous profits in their tryst with these currencies and it’s about time, India meets its tryst with destiny sooner to book profit margins.
Upswing for exchanges, New-age investors
India’s will have to ensure that its newfound fling with cryptocurrencies and blockchain assets stays put and its growth remains robust while it builds a foundation with strong legislation entrusting its investors to opt for highly traded currencies like Bitcoins in its systems. Exchanges like CoinDCX, CoinSwitch Kuber, etc. have created a frugal digital infrastructure to usher a new stream of Gen Z investors who are slated to contribute immensely over the next couple of decades. Known to be the dominant risk-takers and who are not swarmed by conventional wisdom in parking their money in government or low-lying securities – the millennials or ‘Gen Z’ are expected to be the ones to be opting for several digital currencies.
Gen Z are programmed digitally and have been known to be embracing everything digital from grocery purchases to buying investments through applications which is devoid of tedious paperwork. The spurt in the increase in the valuations of several cryptocurrencies and its easier processing into fiat currency has also led to the upheaval among the current lot in acknowledging its true valuation.
A huge fillip has been given to the entrepreneurial sector which has attracted major investments through Bitcoins by venture capitalists and FIIs recently, which are aided by its democratized fabric and fast-paced transaction mode.
Among the major cryptocurrencies, Bitcoin’s valuations have skyrocketed, toppling even gold by a huge margin, making it among the numero uno choices for investments. This will lure millennials who are looking for quick returns on their investment and bring about a change in our government's conventional thinking. The profit booking on crypto assets especially Bitcoins and Ethereum has made it a fiercely competitive currency and Gen Z has started to take notice of this.
Beyond an asset but a mean of exchange
There is a huge growing misconception that cryptocurrencies are expensive and out of the reach of the common man. In fact, these currencies are designed for their far-reaching outreach and not restricted to an elite group of individuals or organisations. More so, many chains of restaurants or superstores are crypto-enabled and open to transact business in bitcoins targeting ‘Gen Z’ who is scouting for a change from fluctuating currencies that have monopolised the market for decades. Gen Z has begun treating cryto currencies not only as a means of investments but also for commonly transacting day-to-day business to make it versatile for faster and wider acceptability.
With the acceptance of cryptocurrencies for day-to-day transactions both by business and the current generation only strengthens the notion that crypto currencies are here to stay.
DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.