cryptocurrency It has gained attention as an asset class over the years and has gone mainstream on the back of its sharp rally, despite being renowned for its volatility and uncertainties around regulations in several countries, including India. Digital tokens move into the mainstream in 2021 as institutions and retail investors join the crypto market.
“Last year was an extraordinary year for the crypto industry. From raising millions of dollars for institutions to join crypto and invest in the space, to the rapidly growing NFT space. Ethereum has outperformed traditional markets as well as bitcoin last year. performed,” said Nischal Shetty, Founder, WazirX.
India became the second largest country in terms of crypto adoption, and looking at the current scope, experts believe that 2022 could arguably see India leading the world pack in getting utilities out of decentralized disruption, provided The government should adopt a progressive regulatory stance.
“The maker economy will see incredible innovation in the Web3 iteration that could explode as the ‘new renaissance of entrepreneurship’ only in 2022. We will also learn about popular DeFi-projects and, by March 2022, DeFi contracts with a combined value of $41 billion DeFi and the DAO community have benefited greatly from produce farming, which is quite popular on the DeFi platform,” Shetty said.
There is a potential for crypto adoption from regional markets in India and with the current trend, more Indians across all demographics are expected to join the crypto revolution.
Nischal said, “We will see new trends for crypto globally and in India in 2022 as we discuss the regulatory framework and clarify the ambiguity we face with regard to taxation and compliance directives by government officials.” may be given priority for this year.” Shetty, Founder, WazirX.
2021 was a big year for the crypto markets and many experts see the potential for greater acceptance by mainstream investors and companies in the new year.
Once an asset is regulated, it attracts a wider audience of investors. It comes with comprehensive investor education and acceptance that reduces the uncertainty around the asset class. According to Ashish Chanda, founder and CEO of Crystal, Kryptos could see this change in 2022, should the rules swing in their favor. Investors’ fears and concerns about the safety of investing in crypto.
On how investors should approach crypto investing this year, Chanda advised that risk management, not FOMO, should be the principle driving investment decisions on crypto.
“The two major pieces of advice here would be not to consider cryptocurrency as a substitute for gold because crypto has some of the properties of gold, it is limited in volume and its value is not affected by interest rate decisions. Also, given the volatile nature of crypto, one should not allocate more than 3-5%, investors’ allocation should be aligned with their risk appetite,” he suggested.
The Government of India has worked on preparing a bill to regulate cryptocurrencyWhich was expected to be introduced in Parliament in the winter session in November. Since it was not mentioned during this period, experts believe that the government may mention it in the February budget.
2021 was a big year for crypto around the world. El Salvador this year became the first country to make bitcoin legal tender, while the first exchange-traded fund tied to bitcoin futures also began trading.
“India cannot isolate itself from the cryptocurrency ecosystem. It is here to stay and is poised to change the concept of money globally. It is important for the government to allow, enable and encourage innovation in the space.” It is,” said Chanda.
According to market research firm Chainalysis, today, India already has around 15 million crypto investors, and is now the second largest country in the world when it comes to global crypto adoption.
“Even though crypto is evolving as an asset class, the true potential of crypto is much greater than that. We are seeing early signs of this globally and in India as More and more industries, including banking, healthcare and agriculture, are adopting blockchain, the technology that enables cryptocurrencies.
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