Keep your nerves if the mega cryptocurrency has made you anxious because there is a silver lining to the chaos the crypto asset class endured last week.
Keep your nerves if the mega cryptocurrency has made you nervous, especially if you are an investor in digital coins like Bitcoin or Ethereum. There is a silver lining in the crypto asset class’s recent chaos.
Although the recent period of volatility has been widely interpreted as a course correction (one Bitcoin is currently floating around $37,000 after hitting a record high of nearly $60,000 only a few weeks ago), industry experts believe that remaining invested and thinking long-term is the best strategy for crypto investors in the nation.
Bitcoin and other cryptocurrencies are becoming more common in India. According to estimates, the country now has over one crore crypto investors, and the number is steadily increasing every day, thanks to the presence of several domestic crypto exchanges.
Despite the Reserve Bank of India’s (RBI) reservations about cryptocurrencies, Indians are flocking to the digital coins, which are being hailed as the most critical asset class of the twenty-first century.
The Reserve Bank of India (RBI) directed financial institutions to cut ties with individuals or companies trading in virtual currencies like Bitcoin in April 2018. The Supreme Court, however, permitted banks to continue managing cryptocurrency transactions from traders and exchanges in March 2020, providing relief to crypto investors.
Finance Minister Nirmala Sitharaman announced in March that all cryptocurrency trading windows would remain open, providing additional relief to stakeholders.
RBI Governor Shaktikanta Das said earlier this month that the central bank has expressed serious concerns to the government about cryptocurrency.
Among the uncertainties is the fact that, while a 40% drop in the price of Bitcoin from its all-time high seems drastic, it is common in many volatile markets, including crypto, particularly after such a large rally, according to industry experts.
“Short-term traders are mostly to blame for such corrections. First and foremost, investors should put their money into education. Research the underlying value of Bitcoin, Ethereum, and other crypto assets in the same way you would before buying stocks in a business “Avinash Shekhar, ZebPay’s Co-CEO, said.
India, according to key industry players, is a tech and economic powerhouse that will emerge as a major player in crypto and blockchain adoption.
Cryptocurrency has “now listed itself as a macro asset class for investments that can’t be ignored,” according to Sumit Gupta, CEO and co-founder of cryptocurrency exchange CoinDCX.
Gupta told IANS, “It will lead to greater mainstream acceptance than ever before.”
