After China's stance towards crypto, India seems to have gained the attention of global players, both in terms of investment and mining. Also, as per the latest report, India has the highest number of Cryptocurrency owners in the world at over 100 million.
But are these the only factors behind the global acceptance of cryptocurrency? Well, not even by a long shot. The growing popularity of crypto does take the financial benefits into account but that's just the tip of the iceberg. With investors flooding in to empower leading crypto exchanges like CoinSwitch Kuber , there have to be other explanations for this unprecedented rise in crypto approval.
The subjective nature of virtual money
Did you Know?
RBI is working towards a ‘phased introduction’ of the digital rupee. The digital rupee will likely coexist with cash and digital forms of payments.
Plainly put, the underlining crypto tech, i.e., the blockchain-specific public ledger is a potential market disruptor when it comes to changing the way traditional payment setup works. While this is one of the primary reasons for crypto's worldwide acceptance, there are 5 key participants that further strengthen the case for this new breed of currency.
Benefits to merchants and consumers
Right now, crypto is a hot favourite in the retail space, riding on the perks of P2P payments and secure transactions. Despite the price volatility, top merchants are letting consumers pay using Bitcoins and even Altcoins, owing to the transactional safety in play. With consumers getting access to inventive crypto-related services in the future, the acceptance is only expected to move forward, from here.
Change in the existing financial mindset
Despite people still dependent on banks, there has been a state of unrest when it comes to dealing with intermediation. Banks store your money and are in charge of it unless you want to make purchases. Cryptocurrencies are slowly making the space more autonomous by cutting out middlemen that are in control of your hard-earned money. Even though this concept is still in its infancy, it holds a lot of definitive promise.
A haven for tech developers
Skilled developers are relentlessly contributing to the crypto mining space, whilst strategizing newer ways to make the process less energy-intensive in time. In addition to that, new crypto players are showing up each day with better transactional speeds, improved software development setup, and the ability to generate blocks quicker.
Influx of investors
Well, it's time that we reiterate the confidence that people have in the crypto space, especially when it comes to investing big and going long. But you should realize that people aren't paying for a particular company or standard value. Instead, it is the inherent valuation of the existing technology that is driving investors in droves.
Do not let China's stringent stance generalize worldwide regulations towards cryptocurrencies. Despite the odd aberrations, the entire global machinery seems quite optimistic with El Salvador being the first country to declare Bitcoin as a legal tender. There have been other heartening instances similar to this, making crypto stand taller in a space that has otherwise been a bit hostile towards new entrants.
Cryptocurrencies and the diversity around
Money is just money, right! While this holds true for the fiats, crypto players are invested in populating the virtual space with diverse, tech-backed options. The underlying technology associated with a given crypto player determines its value in the long run, without bias or relative effects.
For instance, Ethereum as an inventive blockchain platform with an affinity towards smart contracts is the reason behind the massive surge in the prices of Ether, the relevant cryptocurrency.
Crypto for the institutional players
One of the major global acceptance drivers for cryptocurrency has to be the interest shown by the institutional players. As revealed by Binance CEO, Changpeng Zhao, institutional investors have significantly flooded the crypto arena, thereby pushing the prices higher for once. Once the prices reached new highs, by breaking multiple resistance zones, people started putting their trust on the uptrend, thereby leading to continuous up move and amplified acceptance.
Still onboard with the sentimental play!
Despite cryptocurrencies being trusted worldwide, albeit, in patches, the space is still prone to sentimental moves and manipulation. However, in 2021, big players have learnt to weather off momentary storms and only respond incrementally to the good news, thereby replicating the stabler stock market, in terms of sustainability.
Substantiating this fact is the ATH (all-time high) made by Bitcoin once Tesla announced a $1.5 billion investment in the same, which is roughly 8% of the company's cash holdings.
How sweet is crypto space brewing in India?
After China's stance towards crypto, India seems to have gained the attention of global players, both in terms of investment and mining. Also, as per the latest report, India has the highest number of Cryptocurrency owners in the world at over 100 million .
While the space is still in a state of limbo, considering the massive population and the 5th highest crypto adoption rate of 7.3%, crypto enthusiasts are taking heart from the Supreme Court's verdict that reversed RBI's ban on the crypto trade way back in 2018.
In 2021, we are about to witness a major crypto renaissance with retail firms and eCommerce slowly accepting Bitcoin payments, celebrities like Dinesh Karthik foraying into the NFT space, and the evolution of Indian crypto unicorns like CoinSwitch Kuber . While cryptocurrencies still have a long way to go before being untrusted as valued and go-to investment and technical instruments, 2021 till now has been nothing but promising for this space. Also, with India picking up the baton, in terms of driving the next leg of the crypto up move, the global acceptance is expected to spread out more evenly over time.
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