Finschool By 5paisa

Finschool

How Crypto Is Attracting Millenial – Is The Risk Worth It ?

How Crypto Is Attracting Millenial - Is The Risk Worth It ?

How Crypto Is Attracting Millenial – Is The Risk Worth It ?

The rapid increase in digitization in the past few years has created a ripe environment for digital currency. Almost half of the surveyed respondents said they would start or increase their investments in crypto currencies if there was more awareness about benefits of investing in them or if it was more widely accepted as a mode of payment.

The key driver for most urban Indians to invest in digital currencies is primarily the promise of high returns in a short time.  The other two top reasons to invest are high liquidity, through which one can easily buy and sell crypto currencies while  rest claim that their interest has piqued due to higher awareness of all the marketing information on crypto currencies via ads, social media etc.

But there are still various reasons that deter people from investing in crypto currencies. More than half of urban Indians find lack of government regulations on crypto currencies to be a key factor discouraging them from investing in them. Unlike many other emerging markets, the government in India is yet to issue a regulatory stance on this new asset class and it seems this will enhance people’s confidence in digital money.

The above two perspective are the ones which are in general, But among them will the Millennial accept crypto currency as an investment?

Who Are Millennial ?

MILLENIAL are persons reaching young adulthood in the early 21st century.

Millenials On  The Fence  About Cryptocurrency
  •        Fuelled by the hype and advertisements, young investors are flocking to cryptocurrency exchanges with dreams of earning quick profits, and  investors specifically think cryptocurrency can make them millionaire.

  •       Meanwhile, Prime Minister Narendra Modi said while flagging cryptocurrency as one of the areas where they should work together to “ensure it does not end up in the wrong hands” and “spoil our youth”.

  •       Speaking on “India’s technology evolution and revolution” during a virtual address at the inaugural Sydney Dialogue, Modi referred to the digital age that “is changing everything around us” and said it was “essential for democracies to work together” — from technology to supply chains. “Take cryptocurrency or bitcoin, for example. It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth,” Modi said.

Millennials Are Pulling Out India’s Crypto Industry Out Of The Shadows
  • In hundreds of India’s small cities and towns, a generation that has hardly had any experience with stocks and bonds is heading straight for Bitcoin, Ethereum, Cardano and Solana. The average age of the 11 million users of CoinSwitch Kuber, a Cryptocurrency trading app that didn’t exist 18 months ago, is 25, and 55% of them are from outside large metropolises like New Delhi or Mumbai.

  • Now trading is all very public, and highly visible. CoinSwitch Kuber has signed up a popular Bollywood youth icon for an ad campaign with the tagline, “Kucch toh badlega — something will change.

  • For CoinSwitch, which started out as an aggregator of best real-time prices for digital assets around the world, something already has. In 2018, the fledgling venture couldn’t play on its home turf because India’s monetary authority had instructed banks not to entertain customers who dealt in virtual currency. It was only in March last year that the Supreme Court overturned the ban. CoinSwitch, whose app was released in June, acquired 11 million customers in 16 months. Investors took notice of the start-up: It recently became the first in the country to raise money from Silicon Valley venture capitalist Andreessen Horowitz, at a valuation of $1.9 billion.

  • Having gone mainstream in such a short time, the industry itself is demanding to be regulated. “We’ve decided that we’ll show our faces,” says Ashish Singhal, one of CoinSwitch’s three cofounders. “Even if regulation harms our business in the short run, it’s better than being forced to operate in a gray area with little certainty and not much room for growth.”

Receding Risk For Crypto Industry
  • Fears of being outlawed have swirled since last year’s court order that gave the dying industry new life. But that risk is now receding. While Beijing last month announced, in most unequivocal terms, its resolve to root out all transactions in virtual currencies, the consensus opinion is that New Delhi will hesitate to take such an extreme step.

  • That’s partly because the relationship between private business and the state is different in India, where politicians need corporate donations to fight expensive elections, and citizens don’t like being told by the Bollywood stars promoting crypto.

  • Many more want to — the draw of crypto is now half as powerful as that of mutual funds, a product with which older generations has a far deeper familiarity. That offers a glimpse of what investor portfolios will look like in the future: A mix of digital assets and traditional financial products. Even without the reflected light of Bollywood stars, India’s crypto industry isn’t going dark again.

  • As per a survey report released last November by CoinDCX, another cryptocurrency exchange platform in India, 71 per cent of respondents below 35 years said they have invested in a cryptocurrency at least once.



Related Articles

India To Witness New Alliances

India To Witness New Alliances



Read More
NPCI JOINS HANDS WITH AGGREGATORS FOR TOKENIZATION

NPCI Joins Hands With Aggregators For Tokenization Facility



Read More
Rupay v/s Visa- India's Local Rival Raises Concerns for The US Giant

Rupay v/s Visa- India’s Local Rival Raises Concerns for The US Giant



Read More
How can Automation affect the economy (2)

How Can Automation Effect The Economy?



Read More
digital banks

Digital Banks – A New Era Rebooting Banks



Read More
Bad Banks Could Be The Much-Needed Vaccine To Check The Zooming NPA Crisis Amid Pandemic

Bad Banks Could Be The Much-Needed Vaccine To Check The Zooming NPA Crisis Amid Pandemic



Read More
Digital Rupee and cryptocurrency - Can They Coexist?

Can Digital Rupee and Cryptocurrency Co-exist?



Read More

Controlling Emotions While Trading



Read More
UPI transactions

UPI Transactions Cross $100bn Mark In October 2021



Read More
HOW CAN INVESTORS TAKE ADVANTAGE OF BUSINESS CYCLES

How Can Investors Take Advantage Of Business Cycles



Read More
cross border payments

What Are Cross Border Payments And How It Is Getting Revolutionised?



Read More
account aggregator network

What are Account Aggregators?



Read More
Why Rupee's Fall To 20-Month Low Should Not Worry You

Why Rupee’s Fall To 20-Month Low Should Not Worry You



Read More

Points to Remember Before Filing Your Tax Returns on Time



Read More
co-lending Model

Can Co-lending Models (CLM) Be The Future Lending In India?



Read More
SEBI GIVES A POSITIVE NOD FOR LUCRATIVE CHANGES TO IPOs

SEBI Gives A Positive Nod For Lucrative Changes To Preferential Issues



Read More
RBI retail

RBI Retail Direct Scheme- A Significant Milestone In Government Securities Market



Read More
NBFCs To Get Equally Treated As Banks Under Prompt Corrective Action By RBI

NBFCs To Get Equally Treated As Banks Under Prompt Corrective Action By RBI



Read More
FINANCIAL INCLUSION (2)

Financial Inclusion – Changing The Sector Together Brings Smiles For The Unbanked.



Read More
Is Neo-Banking The Future of Banking

Is Neo-Banking The Future Of Banking?



Read More
Tokenization

Tokenization – Can It Be A Future For Business Model Platforms?



Read More

Why A Balanced Advantage Fund Is A All Season Fund?



Read More