Indians have used gold as a source of wealth preservation for over three thousand years. It is a culture where the metal has deep roots, according to Bloomberg.
Like gold, it is likely that the reason crypto assets have a particular traction in Emerging Market countries is the fear of currency depreciation. However, it is more than likely that a speculative frenzy is contributing to this novel interest.
Young Indians interest in crypto dwarfs the US, with 23 million traders of these assets compared to just 2.3 million in the US. It is unclear if in the short term this will be a good trade. The Indian government is uncertain how to address this, with some bans in place;
However, the growth in interest could be beneficial for the country in the long term, as Blockchain technologies seem ideally suited to reforming emerging market systems, by empowering their citizens via decentralisation.
This will certainly be an interesting trend to follow.
See the Bloomberg article (limited free articles, then subscription based) here:
If you need an expert witness in blockchain, crypto investing or other aspects of finance then contact us and we will be delighted to help.