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What is the Future of the Cryptocurrency Market in India?

Aug 9,2022 | Business Services

Cryptocurrency is an encrypted and decentralized virtual currency. It is used to protect money transfers, monitor the development of additional units, and significant transfer of assets as a medium of exchange with data encryption. Usually, cryptocurrencies are not issued or maintained by the countries’ central authorities or other financial institutions. There are two types of cryptocurrencies – public and private. Bitcoin, Ripple, Altcoin and Ethereum are some of the popular forms of cryptocurrencies that are transacted in India.

India is one of the leading markets for cryptocurrency exchange in Asia, with the second-highest adoption rate in the world. On the Global Crypto Adoption Index, India’s index score was 0.37 in 2021, after Vietnam, which had the highest adoption index score of 1. Cryptocurrency adoption grew by 586% in India during 2020 – 2021. At present, the country has around 15 million people who hold cryptocurrency assets.

During the projected timeline, Bitcoin is expected to have the highest market share. Cryptocurrency market in India is driven by increasing demand for trade, compliance-free transfer, and simplicity of cross-border payments. The strong growth in the cryptocurrency market is driven by the expectation that Bitcoin will be "digital gold" and that blockchain-based tokens will reshape industries.

Some of the variables that increase consumer growth globally are low ownership costs, safer, and increased efficiency. Moreover, it is further expected that minimum exchange rates, interest rates, or charges for all international transactions will fuel the cryptocurrency market over the forecast period. Increased adoption of bitcoins in developing countries, greater investment in blockchain technology, and increased demand for secure international-border transactions are alleged to provide favourable prospects for advances in the cryptocurrency industry.

Many new retail investors invested in cryptocurrency platforms after the government lifted the ban on crypto transactions following the Supreme Court’s intervention. Cryptocurrency user subscriptions from tier II and III towns grew by 2000% from January 2020 to January 2021. The pandemic followed by lockdowns led to economic problems in the country. People started to look for ways to augment their incomes, trading being one of them. At present, cryptocurrency is one of India’s fastest growing sectors and has immense earning opportunities for people. The investment in cryptocurrency has increased by 612% from April 2020 to May 2021. The cryptocurrency market in the country witnessed exponential growth since the onslaught of the pandemic.

The market research analysis presented by Bharatbook, has surveyed the Cryptocurrency companies, and industry experts on this industry, involving the revenue, demand, product type, recent developments and plans, industry trends, drivers, challenges, obstacles, and potential risks. The report will enable the user to understand and gain insights into the current and forecast market situation.

To get more insights on the market, we recommend visiting Cryptocurrency market in India