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Kolkata: As the prices of cryptocurrency zooms in the US, thanks to the promise of US President Donald Trump to turn his country into the global crypto powerhouse, a silent cheer is spreading among wealthy Indians many of whom are increasingly risking their wealth in this fast appreciating asset, reports have stated. In 2024, India was identified as the top country to invest in cryptocurrencies for the second consecutive year with more and more people ignored the government's disapproval of the risky and potentially dangerous asset to invest in it.
A report from blockchain analytics company Chainalysis scanned adoption trends across 151 countries and it showed India emerging as the top performer in usage of centralised exchange and decentralised finance assets in the period from June 2023 to July 2024.
“India has also got a fairly wide spread level of adoption across different assets of crypto despite restrictions, implying new participants to crypto would have been participating via services that were not banned,” Eric Jardine, research lead at Chainalysis, had told the media last year.
As crypto currencies have surged following the election of Donald Trump to the White House, more and more rich Indians have embraced cryptocurrency faster, reports show. "Over the last 6 months, we're seeing clear momentum from HNIs and family offices who are now allocating a portion of their portfolios to digital assets," Atul Ahluwalia, vice-president, HNI & institutional investments at CoinSwitch, was quoted in the media as saying.
And that's not without reason. Let's consider the surge in Bitcoin prices. It crossed $121,000-mark for the first time on July 14. It multiplied the wealth of investors by 103% in the past one year. Ethereum and Solana surged too. Just to put things in order, Bitcoin price levels have zoomed an 1,414% in the past five years. Analysts are optimistic on the long-term outlook of cryptocurrency.
With Trump now beginning to deliver on his promise to make the US the crypto powerhouse in the world, US lawmakers will be discussing three legislations to make the cryptocurrency world run smoothly. This week has been dubbed as the crypto week in the US.
Compared to the adrenaline rush in crypto, the Indian stock market benchmark indices have crawled. Nifty have risen by about 2.5%. The US indices such as Nasdaq composite have only inched up by 12.5% and S&P500 by 11.3% in the same time when Bitcoin have risen by almost 100%.
The Indian government has adopted a tough stance against cryptocurrencies. In late 2023, the Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges in December 2023 for not adhering to the Indian rules. The Indian government and Reserve Bank of India discourage investments in crypto assets and maintain that these might be used for money laundering as well as for funding terrorist and subversive activity.
(Disclaimer: (Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.))
