The rise in popularity of bitcoin appears to be unstoppable. Now, research reveals that Indian investors have adopted cryptocurrencies as well. According to a new report by Chain analysis, India's cryptocurrency explosion has resulted in a massive increase in the number of users. According to the research, India had the world's second-highest number of cryptocurrency users in 2021. India is second only to Vietnam in terms of bitcoin users, according to the survey, which was published in 2021.
Aside from the increase in cryptocurrency users, the industry research firm's analysis showed that the country's crypto market increased by 641 percent last year. While Pakistan ranks third in terms of cryptocurrency users after Vietnam and India, it has had the highest growth, with a 711 percent increase. "While India, Vietnam, and Pakistan all have significant levels of grassroots cryptocurrency acceptance, they're quite different in terms of the raw transaction value," according to the survey.
"Tons of Indian developers, fund analysts, and independent freelancers working for abroad clients have started wanting to be paid in cryptocurrencies," said Krishna Sriram, Managing Director of Quantstamp, according to the story.
The growth in bitcoin usage coincides with Finance Minister Nirmala Sitharaman's announcement that the government will soon provide clarity on the formalization of cryptocurrencies. Virtual digital assets will be taxed, according to the government's budget for 2022-23.
Source: Bitcoin Price History Chart (Last 60 Days)
Cryptocurrency timeline in India:
2013: - Unocoin, a cryptocurrency exchange, has launched, allowing Indians to buy and sell Bitcoin. Bitcoin rises from $100 to $1,000 in the same year. In the lack of a backing asset or reserves, the RBI releases a recommendation against cryptocurrencies, cautioning the public against using virtual currencies and stating that their prices are a "matter of speculation."
2014 -2016: - Even when multiple new exchanges open in India, the price of the cryptocurrency stays basically sideways. Following demonetization, exchanges have seen an increase in users.
2017: - The price of bitcoin has risen dramatically from a low of around $2,500 to a high of nearly $20,000. According to Google Trends, interest in bitcoin has increased 20-fold. However, the regulatory cloud surrounding cryptocurrencies is darkening, with the RBI and the Finance Ministry issuing warnings to the public. Cryptocurrencies are compared to ponzi scams by the Finance Ministry. A committee with members from FinMin, RBI, and SEBI has been constituted to investigate the asset's regulation. The Supreme Court has received two petitions opposing the usage of cryptocurrency.
2018: - WazirX begins operations, later to be acquired by Binance and become India's largest cryptocurrency exchange. The Reserve Bank of India (RBI) issued a circular prohibiting any financial firms from interacting with any cryptocurrency-related entity, thus banning the asset class in India.
2020: - The RBI's ban is overturned by the Supreme Court. Following the COVID-19 lockdown, global interest in cryptocurrencies surged, and prices begin to rise after an initial correction. By the end of the year, Bitcoin will have risen from around USD 3,700 to approximately USD 30,000.
2021: - Prices nearly double once more, with Bitcoin reaching over $64,000 before halving. Banks send warnings to customers about bitcoin, citing the RBI's 2018 circular. In light of the Supreme Court's decision, the central bank claims that its circular is no longer valid.