Future of Cryptocurrency in India

Cryptocurrency is becoming more of an investment asset class. Its concept is more of a medium of exchange and can provide good returns over time. However, its technical details are still very limited.

Cryptos are decentralized digital currencies that are operated through a network of users. They are not controlled by a central authority and can be created as open-source software.

What makes Cryptos Valuable?

A look at the chart of Bitcoin shows that it has been going through a vigorous period of time and is not showing signs of decline. Its potential to become a mainstream asset is bound to grow significantly in the near future. Despite the various bubbles that Bitcoin has experienced in the past, it is still the most valuable asset in the crypto market. Its scarcity is the reason why the price is so high. Due to the nature of cryptocurrencies, it is not possible to print, issue, or circulate them like bank notes. Also, due to their scarcity, they are harder to generate than gold and silver coins.

At that moment, the point where Bitcoin can no longer be mined or produced without breaking its supply constraints would have reached. Its total supply capacity has already reached 89 percent. There is no new bitcoin in 2040 due to the technological limitations of the machines that could mine it. Since its computational power is equivalent to that of a small country, it would be very difficult to generate new coins.

Cryptocurrency: The New Gold

Due to Bitcoin's increasing scarcity, it became the new gold. Its scarcity has caused gold to become less attractive to cryptocurrencies. As digital currencies and commodities become more prevalent, gold is becoming less relevant. Instead, digital assets and currencies are becoming more practical and mainstream. The supply of gold determines the value of the US dollar. The same goes for cryptos, whose value is determined by the power of computation.

Although gold has higher safety and legal requirements, it is still considered a safer alternative to cryptocurrencies. It also offers better transparency and more accessible to common masses. As governments around the world tighten their regulations on digital currencies, their security is bound to improve. Although gold and cryptocurrencies have their pros and cons, both are still considered to be risky investments. There are many reasons why investors should avoid both gold and cryptocurrencies.

Should you invest? 

India is keen to adopt cryptocurrencies, but with enough caution to ensure their safety and avoid potential misuse. With banks gradually loosening their restrictions, the country is gradually moving towards becoming a major player in the global crypto market. Without proper knowledge of the market, you cannot guarantee a high return. Even in gold, a high return is not possible without proper market awareness. Nothing stops you from winning when you have the proper information and the proper timing. This is especially true in the case of cryptocurrency!