India's Millennial Population Stocking Up On Bitcoin despite Proposed Ban

It is Bitcoin season again as the digital asset has recorded record growth over the last 12 months growing over 700% in value. The last time Bitcoin was able to create such a buzz was in 2017 when the cryptocurrency enjoyed a bull run reaching highs of around $20,000, only to crash and burn a few months later resulting in massive losses for its devotees.

The value of Bitcoin had, since then, been in recovery mode when it managed to pick up again last year amidst the Covid-19 pandemic. From the beginning till the end of last year, the value of Bitcoin accelerated by about 3.2%. India was no different as the lockdown inspired many people to dive deep into the sea of cryptocurrencies. In fact, by the end of last year, Indian Bitcoin trades accounted for about $60 million every day.

The availability of trading platforms and tools has also aided many Indian millennials to take up Bitcoin and other cryptocurrencies with hopes of making profits on a daily basis. These platforms use advanced technologies and powerful algorithms to generate trading signals. This tells traders when to invest and sell or even do it on your behalf with the auto-trading option. These have become a safe haven for you, novice investors guiding them to take only calculated risks.

However, several of these trading platforms have been unveiled to be swindle schemes. Hence, it's best to select reputed and well-known platforms, such as the Bitcoin formula. It is also recommended to do some research before you make your investment in Bitcoin with the chosen platform, for example, you could check out the bitcoin formula review to ensure it is legit and proceed accordingly.

Apart from that, another reason for the surging popularity and price of Bitcoin was the Supreme Court weighing away the circular of 2018 presented by the Reserve Bank of India to ban cryptocurrencies in the country.

These factors altogether fueled the crypto frenzy in India that was becoming even more intense. In fact, from March of last year, the daily average trading volumes of different cryptocurrencies have been up by 500%.

However, once again, the government of India proposed a cryptocurrency bill in the national budget for the current financial year that aimed at restricting the use of private cryptocurrencies in India. This caused quite the uproar among crypto investors, traders, and exchanges spreading uncertainty about the future of crypto in India.

According to the new bill, the cryptocurrency ban would be placed on its buying, selling, holding, minting, etc, and would also be banned to be used as a legal tender. Such activities would be considered to be an offense that could result in a fine and even imprisonment for up to 10 years. Not just that but, any holding of cryptocurrencies by Indians needs to be declared and disposed of within 90 days of the passing of the Act.

The country of India has a population of about 1.4 billion people which is the largest in the world after China. And a significant part of this population is predominantly young and tech-savvy. As a matter of fact, lately, it has actually been the hub for several major tech projects over the world. This indicates that India could potentially become one of the largest crypto economies in the world if it desired and worked towards such a narrative.

The younger population despite the looming threat of a proposed crypto ban has been embracing crypto with many millennial investors and traders holding this digital gold in times of economic uncertainty.

In fact, many young Indians view Bitcoin as a better and more lucrative investment than gold. They are, thus, turning towards crypto for alternative and easier ways of earning money.

The Bottom Line

India has risen up to be the second-largest Bitcoin holding nation in Asia right after China. Hence, banning Bitcoin and other cryptocurrencies could surely result in turmoil for the investors and exchanges and affect crypto values. However, even if such a ban takes place, the food news is that it would only be on private currencies rather than blockchain technology. Thus, there would still be potential for further opportunities and developments in this space.