According to reports, Bitcoin trading requests rose by more than four times in India over the last few days, following the news that global autonomous car maker Tesla had invested $1.5 billion into Bitcoin. This news announcement was what sent the price of the token soaring beyond $40,000, and it seems to have been the trigger for increased demand in India as well.
Another important part of this announcement was that Tesla will also begin accepting cryptocurrencies as a payment method in the near future. This means that a major global currency is backing and believing in the potential of cryptocurrencies, and its founder Elon Musk has already publicly stated his approval of cryptocurrencies multiple times, mainly on Twitter. Thus, it is perhaps no surprise that more and more people are looking to enter the crypto space, but this is not a new phenomenon.
This has been a trend that has been accelerating since the beginning of last year, while it has also been impacted by the increasing adoption of crypto and blockchain in various sectors. We are seeing sectors as diverse as shipping, gaming, storage, data analysis and construction, to name just a handful, which see crypto and blockchain as the technology of the future which can help improve operations and increase profits. One such example comes from the online gambling space, especially in India.
India has an extremely young population, which has been the catalyst behind the increased demand for crypto in the country, as well as the growth of sectors such as gaming and online gambling. Additionally, more and more people now have access to smartphones and cheap internet plans, which has been a huge factor in this as well. Any Indian casino site would now be getting many thousands of more visitors than at the start of 2020, and this trend is only set to continue and increase, as people who logged on during the pandemic, looking for a source of entertainment, have now largely become fans and will look to continue playing on these sites.
This wave of online content, as well as a greater willingness to try out new forms of investment, have been two of the biggest factors for Indians moving towards crypto. In fact, this increase in demand has caught exchanges by surprise, with many of them, such as WazirX for example, struggling to cope and therefore seeing delays for customers looking to buy crypto in India.
This increase in investment is also coming on the back of recent news that the Indian government is actually looking to ban crypto trading in the country, which would be a huge blow to the industry, and would actually encourage illegal trading and activities. The solution surely has to be to regulate this industry well, and provide enough options for users and investors, rather than imposing a blanket ban on the sector.
India’s young population is rapidly looking for new ways to earn money, and cryptocurrencies offer a great alternative in this regard. However, the government needs to support this and ensure that regulation is enacted to protect investors, while encouraging the growth of the sector.
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