New Industries are on the Rise as Cryptos Get Accepted in India
The prices of the world’s foremost cryptocurrency, Bitcoin, surged past the USD 11,000 mark on August 18. It is a splendid recovery for the digital cash as it reached a low of USD 5000 in March 2020. At this point, the Bitcoin is trading at USD 11,851. The COVID-19 pandemic had pummeled the financial assets across the world, and even the cryptocurrencies were not spared.
Thankfully, the crypto world had staged a fantastic rebound, and in countries like India, there had been a renewed interest in cryptocurrency. The Supreme Court of India, in March, gave a verdict that reversed the complete ban on cryptocurrencies imposed by the Reserve Bank of India (RBI) in 2018. This ruling led to a magical revival and renewed interest in the cryptocurrency industry in the country.
There is a lot of positive vibe surrounding Bitcoin right now. As the prices are steadily growing up, many holders are returning to the scene, and the traders have increased trading activities to earn profits. The constant rise in Bitcoin price has caused an increase in the price of other altcoins. There is also a massive jump in the trading volume. The trading volume had doubled from USD 8.14 million in March to USD 16.26 million in July. All trading was carried out on two asset trading platforms – LocalBitcoins (Finland) and Paxful (US). Before the Supreme Court ruling, the platforms were only used by those living abroad, but now even resident Indians are allowed to trade.
The homegrown trading platforms WazirX and CoinDCX are enjoying monthly trading volumes of USD 12 million. Many people would consider abysmal as the trading volume in significant crypto exchanges across the world is not less than USD 100 million, at least. But, the silver lining is that the figures indicate the return of the local investors. CoinDCX is doing good as it has managed to attract investments from BainCapital (US). Till May, it has raised USD 5.5 million.
In another piece of encouraging news, the Binance of Malta, the largest crypto exchange network in the world, took over WazirX in November 2019. The systems of the two exchanges have been interconnected seamlessly. It means that the users can log into each other’s platforms and carry out trading. Among the new crypto exchanges, TradeHorn Exchange & BitPolo Technologies deserve special mention. Both are based out of Bengaluru, and their main aim is to get hold of the newbies in the crypto asset market.
The next few months are crucial as one of the draft bills with the present Indian Government has a provision for bringing in a complete ban on cryptocurrencies. However, such a decision, if taken, will not go down well with the power IT industry of the country. The IT firm’s fight against such policies is natural as the most prominent IT company in India, TCS, has introduced a cryptocurrency trading platform in July, and another IT biggie, Infosys, supports a blockchain-based technology.