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Gauraf Dahake
People’s investment habits have changed 360 degrees during the pandemic. As more and more people work from home, we’ve found that many expenses have been cut and additional disposable income is on hand. At the same time, there has been a boom in fintech companies striving to make investment easier for their customers. Investors were also attracted by the conversations about cryptocurrencies and their strong track record as a return on investment. The Indian crypto exchange platform saw an increase in the number of signups during this period, along with a significant increase in trading volume.
2022- Crypto Winter
After the pandemic, people started to go back to work, a recession hit, and many people were laid off. Both the industry and technology have been profitable, but 2022 has been, as the experts rightly called it, a harsh winter for cryptocurrencies. Some have fallen more than 60%. This was made worse by the collapse of his FTX, the world’s largest cryptocurrency exchange. There have been several other exchanges that have followed lawsuits, such as BlockFi, which filed for bankruptcy after regulatory investigations. , made investors skeptical of the deal. The Reserve Bank of India is also very cautious about cryptocurrencies and aggressive in denying their legality. Cryptocurrencies have always been a means of potentially endangering macroeconomic and financial stability has been regarded as
In India, cryptocurrencies are traded as an asset class, not as fiat currency. The year started with the announcement of his 30% tax and 1% of his TDS on people’s cryptocurrency investment portfolios. This not only led to a decrease in trading volume on Indian cryptocurrency exchange platforms, but also subsequently increased trading volume on forex platforms. This was done to avoid taxation and traceability previously mandated in his KYC on Indian exchange platforms.
The season of virtual currency change
What most people tend to overlook is the fact that cryptocurrencies have always been a volatile asset class. Nevertheless, they have always shown excellent returns over the long term. Market trends show that at recent highs, a single bitcoin is worth more than $64,000, and below $0.10 in the early days. Far from being traded.
Back to basics, cryptocurrencies are a product of blockchain technology, a highly innovative technology driving the Industrial Revolution 4.0. Countries around the world, including India, have developed Central Bank Digital Currencies (CBDC) using the same blockchain technology as crypto. The main difference between them is that CBDC is a conceptualized, regulated and alternative to fiat currency whereas crypto is a decentralized and decentralized asset class.
Despite the cautious attitude towards investing in cryptocurrencies following the bankruptcy of a major international exchange, investor confidence remains high. A decline in value has been seen as an opportunity to invest more. The only remaining question is how to integrate cryptography into current systems. On the business side, cryptocurrency remains one of the hottest industries for startups and companies, especially in India with its large tech-savvy audience.
Almost all crypto exchange platforms in India are doing well in terms of business despite all the uncertainties.
Expectations from 2023
2023 will be a turning point for cryptocurrencies globally, and especially for India. We believe India will become a potential leader in cryptocurrency regulation as the Ministry of Finance has been very vocal about international cooperation on its regulation. With India leading her G20, there has already been some discussion about the scope of industry recognition and regulation. The potential of the ecosystem is fully realized only when there is regulation for centralized crypto players. This tends to be exploited by those who control them.
The industry also calls for increased innovation and adoption of decentralized infrastructure to provide more transparent and secure methods of transactions and management of digital assets. With all this and much more going on, the next year definitely looks promising for crypto enthusiasts who have continued to show their faith and cynics who still question their own viability .
The author is the CEO of Bitbns
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