The cryptocurrency community mainly in India is going through an adrenaline rush as prominent names join the cryptocurrency space Home page. They are viewed as a good charm for the industry. The uber-rich individuals and leading corporates are doing so in the middle of rising volatility in the worldwide crypto-verse.
How are Uber-rich Indians buying crypto?
- Many wealthy individuals in India are joining the bandwagon of cryptocurrency as according to them cryptocurrency exchanges are offering them personalized services. Amid the increasing worldwide institutional adoption of crypto, an upward movement has been seen in crypto investments.
- The wealthiest population of India more likely will invest in Bitcoin compared to other cryptos as the high-net-worth people of the country believe digital assets are great investments.
- Real estate may be the preferred asset of investment for them; they are also a step ahead in crypto investment.
- In the next 3-4 years they will be investing in cryptocurrency and make it the fourth most preferred investment asset in the future.
- Bitcoin has a lot of followers than other cryptos.
- After this, Indian HNIs have shown interest in Ethereum and then Ripple.
- Only a few are keen to make other crypto investments.
- For investors Bitcoin has been the top digital asset for many years. It is preferred by those who are in search of long-term investment.
- When huge money began to enter the cryptocurrency space, Bitcoin was the initial stop before it got diversified into different assets.
- But now many altcoins have begun to become popular and Bitcoin may lose its hold as the top choice for a few investors.
- In a recent survey, it was seen that the uber-rich class does not favor Bitcoin as their main choice.
- Instead they chose an altcoin with a growth rivaling and surpassing Bitcoin since its emergence.
Uber-rich Indians come with mixed crypto investment feelings
- Investors in India are now clear about the stance of the government on cryptocurrency assets.
- Last year the scenario was different.
- These digital assets were hugely considered to be a negative investment area before the new cryptocurrency taxation law was proposed under the 2022 Finance Bill.
- Some individuals adopted the idea of cryptocurrency and place their money.
- But the majority kept themselves away from it.
- The main reason is a lack of proper understanding of the market of cryptocurrency which is now having more than 8000 different cryptos and tokens to select from.
- Crypto volatility is also another reason why people are staying away from it.
- For many investors it is a highly attractive prospect, individuals at large avoid crypto investment as they fear to lose their money fast.
- Many renowned personalities from the uber-rick class of India publicly voiced their opinions about crypto and other assets based on blockchain technology.
- According to some analysts the cryptocurrency market will collapse someday but it will never have any huge effect on the equity market.
What are Indian youths buying?
- Almost 20 % of the Indian ultra-high-net-worth individuals have started to invest in cryptocurrency assets from last year in the middle of rising crypto and NFT popularity.
- These individuals have USD 30 million or more net worth.
- According to a report almost 18% of these individuals globally own cryptos or tokens and 11 % of them have made investments in NFTs.
- 18 % of Indians of the uber-rich family have done crypto-asset investments.
- 10% have been invested in cryptos and 8% in NFTs.
- Last year cryptocurrency investments became mainstream.
- The growth of this sector caught everyone’s eyes.
- The crypto assets’ global value was USD 2.4 trillion at 2021’s end.
- Now over 8000 cryptos are in circulation for any investor to select from along with NFTs.
- Concerns related to security were the main reason for not investing in these digital assets.
- Even now the uber rick individuals are not aware of the market completely and thus are not fully confident to make proper investments.
- A significant concern is also volatility. However, it is a major attraction for various traders.
Many industry experts mentioned that within one year, a lot of wealthy investors have started considering Bitcoin as an important asset class. It means that they are viewing it as an investment for the long term. From 2017 cryptocurrency came a long way. People no longer view it as speculation. Serious investors having a risk appetite are seeing cryptocurrency as a store of value or future currency.
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