People respond differently to things. Some instantly follow the lead and rules, while others protest or silently forge against the impositions and guidelines. A similar situation appears to be happening in India, where a recent survey indicated that there are almost 115 million digital currency investors in the country. These investors have either invested or are planning to invest in digital currencies soon. A majority of these investors fall between the age group of 18 and 60.
Despite the noise of the residents of India about the excessive digital currency tax rate and the overall controlling stance of the government towards digital currencies and the data gathered by Kucoin narrates a different tale. The Cryptoverse India Report, which was published on August 23, also stated that more than 54% of people in India seek to invest even more in digital currencies over the next six months.
This reminds me of Mohit Kumar, a long-term investor of digital currencies in Delhi, who laughed when asked about the newly announced digital currency taxes back in February.
“Honestly, crypto did a backdoor entry in India through [Union] Budget 2022. And there is no going back now. I don’t care about the 30% slab as I am holding crypto for a long-term vision, and by that time, I am expecting a lot of changes in tax slabs, so let’s chill. The good thing is that it is not banned,” he had commented.
“I will still keep investing,” he told CoinGeek in February.
It is intriguing to note that the investment spree is still alive despite the steep decline in trading volumes, resulting in the migration of most digital currency exchanges abroad.
According to the Cryptoverse India report, 41% of survey respondents were not sure of which digital currencies they would like to invest in, while 37% expressed that they need help in managing their portfolios, 27% said they are unable to predict the market and the valuation of assets, and 21% lack an understanding of the fundamentals of digital currencies.
Why are Indians still investing in digital currency?
The survey reported that almost 56% of the respondents believe that digital currency represents the future of the finance industry, while 54% believed they would receive profitable returns in the long term, stating “crypto makes a great long-term investment avenue for them.” It also pointed out that 43% of Indians invest for short-term profits, whereas 24% are engaging in digital currencies believing it to be “hype for fun.”
The report statistics show that investors in India have an affinity toward digital currencies and that parts of this enormous population still need to be tapped into by the blockchain, aka the digital currency segment of fintech. Companies like Coinbase (NASDAQ: COIN) and WazirX bore the brunt of stringent actions of the Indian government, deservingly perhaps. Recently, the Indian Enforcement Directorate froze the bank account of a WazirX executive, followed by a raid conducted on his premises.
The Indian government has taken a tough stance on digital currencies due partly to the senseless trading of thousands of Ponzi coins. Clearly, there is still an appetite for investment in blockchain technologies. What India needs now is the right one to provide the value its citizens seek.
Watch: The BSV Global Blockchain Convention panel, Blockchain in Middle East & South Asia
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.