Crypto investments in India grew at breakneck speed over the past year, according to new figures.
Data from Chainalysis, reported by Bloomberg, suggests such purchases have surged from $200 million to $40 billion — that’s an increase of 19,900%.
All of this comes despite the Reserve Bank of India adopting a staunch anti-crypto stance, with reports continually circulating that a trading ban is on the cards.
The figures help reinforce the narrative that Bitcoin is being likened to “digital gold,” with research suggesting that millennials are far more likely to invest in cryptocurrencies than precious metals.
Richi Sood, a 32-year-old entrepreneur from India, has invested more than one million rupees into digital assets including Bitcoin, Dogecoin and Ether — borrowing some of the money from her father to do so. She was quoted by Bloomberg as saying:
“I’d rather put my money in crypto than gold. Crypto is more transparent than gold or property and returns are more in a short period of time.”
Why Crypto is Popular
Despite the fact it can be a rather volatile asset, crypto exchange operators in the country say their customers like the fact that purchasing Bitcoin can be far simpler than snapping up a bar of gold.
The surge in investments comes after India’s Supreme Court overturned controversial restrictions that had been imposed by the Reserve Bank of India. The measures had stopped banks from dealing with crypto exchanges — a move that made it impossible for many trading platforms to operate.
Regulatory issues haven’t gone away, and it is possible that the government will revisit curbing the use of cryptocurrencies at a later date.
This comes as China embarks on a crypto crackdown of its very own. As well as targeting miners, it has also been urging banks and payment platforms to stop facilitating transactions related to digital currencies.
Collectively, both countries are home to more than 2.7 billion people.