What is the best cryptocurrency to invest in India? Today, if you ask this question to even a school kid, Bitcoin (BTC) is most likely to be their answer!
In fact, 2021 has been the year, when Indians are most informed about the benefits of investing in cryptocurrency. Concurrently, it’s the year, when bitcoin has reached its record height.
Bitcoin’s dominance is noticeable across all crypto trading exchanges and the world has seen its record high in recent times. Bitcoin holds 63.80% of the cryptocurrency market share. Its circulating supply equals 18,623,718 BTC and market capitalization $860,300,336,419. The graph plots the adoption or trading worth of bitcoin, Ethereum and other popular cryptocurrencies.
Its strong positioning can be further understood by the fact that despite the post-COVID economic shutdown, it maintained the growth momentum.
Given below is the year-on-year price of bitcoin, gold, and stock (S&P) for the last 10 years. Gold and stock are no match for the growth of bitcoin. The price of bitcoin gives even the real estate sector a run for its money.
Declining Bank Interest Rate
While bank interest rates do not stand any close to bitcoin, gold or stock prices, it deserves the mention because the decline in the banking interest rate is pushing conservative people also to invest in cryptocurrency. Banks have dropped their interest rates on all deposit instruments from FD to savings. The chart below displays the latest interest rates offered by top banks for tenures ranging from 7 days to 10 years as of February 2021. In India, bitcoin has gained the attention of not just Generation X, Y and Z but also of older generations.
Leading exchanges like PCEX Member are not just backed by strong liquidity, but also provide a military-grade secure trading exchange for their customers. PCEX Member applies a 5-layer security model which leaves out just 1 in a billion chances or practically zero of your account being compromised. Besides, there are a number of available cold wallet options at bargain prices available in the market. Read more ways to secure your cryptocurrency investment.
The Interest of Businesses and Institutional Investors
Bitcoin is no more limited to individuals. Institutions like Tesla, Microstrategy, Square, the payments company, Huboi exchange, and many other global firms are rallying, endorsing, and investing in crypto. Tesla is soon going to start accepting payments in bitcoin.
Many medium and small entities (for example, GoChoice India, Cynere India) have also adopted it as the payment system, meaning, they allow consumers to buy products or services using bitcoin or other cryptos. Check Spendabit to know what items you can buy for bitcoins. On BitcoinWide, discover businesses that accept bitcoin as payment.
Of the projected $23.3 billion blockchain market by 2023, Statista believes that 60% to be dominated by the financial sector alone. While this doesn’t directly support the participation of institutions like banks and hedge funds into the crypto market but, yes, it’s an indirect acceptance of the underlying technology.
Despite the passage of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 on January 29, 2021 in the lower house of the parliament, proponents of cryptocurrency and bitcoin are leaving no stone unturned to legitimize and regulate it in the larger public interest. The government in India needs to take lessons from their developed counterparts.
Independent law firm Khaitan & Company and CREBACO have proposed a draft Bill and detailed regulations for the Indian crypto industry to all government departments concerned. They have also circulated copies of the bill to all MPs to help them realize the potential of cryptocurrency.
How Much Do You Need to Spend to Buy Bitcoin in India?
The current value of bitcoin equals INR33,841,15. By the time you read this post, it may be a different figure because of the volatility involved. In India, the bitcoin’s price has surged from around Rs 28 lakh to about Rs 35 lakh in the last couple of days after the announcement of Tesla Chief Elon Musk’s USD1.5 billion investment; the price was pegged at about Rs 22 lakh on January 27.
The graph below captures the change in price from 2014 to 2021. In the past two years, there has been an exponential rise in the price of bitcoin and investors are keeping their fingers crossed.
Where Can You Trade in Bitcoin in India at the Lowest Rate?
PCEX Member is the answer. Invest & trade-in bitcoin anywhere, anytime at a transaction fee at 0.3%. This is a flat rate applicable across spot, futures, and options trading. It maintains high liquidity, provides a user-friendly interface, fast, secure, and convenient platform to exchange your digital assets. On the top, it accepts INR as fiat, unlike other exchanges where you buy in USD and incur an additional exchange fee.