If you are wondering, what is cryptocurrency? Why its demand is rising? How is India rising in crypto space? You have landed on the right page. In this article, we will help you answer all these questions.
Learning of the Blog
- Cryptocurrency- A Buzzword
- Why the World Is Going Crazy About Cryptocurrency
- Rise of Cryptocurrency in India
- Concluding Lines: Cryptocurrency- A Boom
Cryptocurrency- A Buzzword
The advent of cryptocurrencies has taken the world by storm and revolutionized the financial industry. Since 2009, unique cryptocurrencies have evolved and popped up worldwide, and India is no more an exception.
Cryptocurrencies are digital currencies (virtual currencies)which uses encryption techniques to regulate the generation and transfer of funds. Unlike traditional fiat currencies, cryptocurrency makes it nearly impossible to counterfeit or double-spend. Few define cryptocurrency as secure units of exchange for online transactions for e-commerce usage.
As the world is going crazy about cryptocurrencies, India is no more an exception. Amid coronavirus pandemic, several crypto startups are looking forward to adopting cryptocurrency.
Companies like ZPX, Incrypt, and Unocoin, are also lining up their expansion plans in crypto space.
As cryptocurrency is a huge buzzword all across the globe, it is gradually increasing the demands for cryptocurrency experts and cryptocurrency traders.
Why the World Is Going Crazy About Cryptocurrency
Cryptocurrency, a virtual currency, is used in all kinds of exchanges and transactions for e-commerce purposes. It is rapidly gaining the public eye due to various reasons.
- Decentralized: Digital currencies are decentralized in nature, thanks to blockchain technology, which allows individuals to make secure transactions and have full control over their data without involving any third party. Further, such currencies are Pseudonymous, meaning identities are not linked with accounts or transactions.
- Faster Settlement: Ease of use and faster settlements is one of the prime reasons for its high demand. Transactions can be propagated instantly and get confirmed in a couple of minutes.
- Permissionless: Unlike traditional systems, there is no central authority/intermediary that can prevent you from exchanging cryptocurrencies.
- Irreversible: Digital currency transactions are completely irreversible, meaning they can’t be reversed once confirmed.
- Secure: Cryptocurrency funds can only be transferred by the owner of the private key. Moreover, they are even fraud-proof as all the identities of owners (coin-owners) are encrypted to assure the legitimacy of record-keeping.
Rise of Cryptocurrency in India
In March 2020 (almost after two years), India’s central bank, the Reserve Bank of India (RBI), finally confirmed no longer a banking ban on crypto industries, including crypto exchanges, companies, or traders. The RBI replied on May 22, saying, ‘As, on a date, no such prohibition exists.’
Founders of cryptocurrency startups are confident about this type of currency in India and believe that the government won’t impose other bans. Since then, various startups are coming forward in this direction. Lockdown can be seen as a notable factor for the growth in volumes. Multiple retail investors and even new players have entered into cryptocurrency trading market during this phase.
Ajeet Khurana, former head of the Blockchain and Cryptocurrency Committee of the IAMAI and former CEO of Zebpay, mentioned that during the lockdown, many people are trading more, adding “Trading volumes are quite robust. Daily crypto trading volume in India maybe be $10-$30 million.”
Nischal Shetty, Founder, and CEO, WazirX, also stated that “At WazirX, we have seen three to four times increase in sign-ups. These are new entrants. Trading volumes have increased 400 percent in the last few months.”
Cryptocurrency exchange CoinDCX has launched ‘DCX Learn,’ a blockchain-based educational platform to spread the crypto education movement. The firm’s CEO and co-founder Sumit Gupta stated that “With the potential to accelerate financial inclusion in India and opening gateways to new forms of investing, cryptocurrencies can benefit everyone. However, for Indians to take full advantage of crypto, we need to lay the groundwork through appropriate education. With DCX Learn, we want to arm users with the knowledge necessary to navigate crypto markets.”
According to Sumit, “DCX Learn will be vitally important in achieving our goal of onboarding 50 million Indian crypto users.” On June 1, CoinSwitch launched an Indian rupee cryptocurrency exchange mobile application and named it ‘Kuber,’ exclusively for the Indian market that supports over 100 cryptocurrencies for users to buy, sell, and trade digital assets with the INR.
Ashish Singhal, co-founder & CEO, CoinSwitch, stated that “by providing a simplified and accessible route into crypto through a cellular software, CoinSwitch Kuber can drive crypto adoption in India.”
Paxful, a worldwide peer-to-peer bitcoin market, expanded India’s operations to faucet into the technology of financially-independent Indians.
Ray Youssef, co-founder & CEO, Paxful, mentioned that “The Indian market holds nice potential and significance for the way forward for the crypto-economy. We’re actively focusing our efforts on bringing cryptocurrency to the plenty throughout the nation.”
Concluding Lines: Cryptocurrency- A Boom
It is important to note that cryptocurrencies are a rising component in today’s digital economy. By enabling payments secretly between two parties, without any government interference, cryptocurrencies are becoming popular. This is why tech giants and even startups are adopting this concept, and crypto trading is becoming popular.
But above all, it should be remembered that to start trading with cryptocurrencies, one should learn about the strategies for making optimal trading decisions in the bustling crypto market. If you want to familiarize yourself with the ins and outs of cryptocurrency trading, sign up flor Blockchain Council.