Is Cryptocurrency Trading in India Witnessing Jump During Lockdown?
The entire world is struggling due to the Covid-19 outbreak but nothing remains shut forever. Ever since the supreme court lifted the RBI ban, the Indian crypto market has been rebuilding.
What’s the impact of the lockdown on cryptocurrency trading? Is it witnessing a boom? The Digital currency has seen a spike in the number of people trading and also signups have increased greatly since the lockdown.What’s making cryptocurrency witness a boom in the Indian market?
Though the economy takes a beating, the crypto-exchanges business takes a boom. The platforms see a big jump in trading volumes and here are a few reasons suggested by experts:
- With traditional share markets and assets taking a beating over worries about the pandemic, investors are finding refuge in virtual currencies.
- Since cryptocurrency trading is online, there is much lesser risk of the pandemic affecting this and people are finding this as an alternate asset class.
-As people have more time on hand these days, they’re spending it researching about different investment methods and coming across crypto-relates news and articles.
-Along with the lifting of the restrictions by the supreme court, the lockdown has also pushed people to find alternative trading options.
-The virtual currency as an asset class has outperformed others like bonds, stocks, and commodities since the pandemic inflicted pain on economics.
-As Bitcoin is a non-correlated, decentralised asset class, it does not get affected by any geopolitical, economic, or pandemic situations.
Most companies dealing in cryptocurrencies and Blockchain are not directly impacted by the pandemic situations or lockdown. This is what makes these platforms withstand the slowdown triggered by the pandemic.Need for Regulatory Clarity
A lack of clarity on regulations and risks associated with virtual currencies remains a prime concern. While the supreme court allowed banks to provide virtual currency services, the Centre has not been able to figure out how to manage this segment and regulate virtual trading.
Though people are finding cryptocurrency an alluring investment option, they don’t know what the future holds for them as things aren’t clear yet. Without guidelines on regulations, it might be difficult for companies, big or small, to launch enterprise use cases for digital assets.
More will be the clarity, more players and exchanges will come and invest in India.
What do you think of increases the crypto trade volume? Let us know in the comment box…
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