I hope all of you are aware that crypto platform Wazirx just crossed Zerodha! (in terms of active clients). I still canât believe how that happened. Then I saw another post (look at the pic below).
7.3% of Indians are in the crypto world, this is higher that the stock market itself. Only 4.3% of Indians invest in the stock markets. The later has just doubled this in no time.
Stock markets are here for centuries where as crypto is something new and itâs kind of alegal (neither legal nor illegal). It has no proper clarification⌠Itâs totally decentralized so there is no regulations. 3rd parties can misuse clients, even in such an event, no one can go fight for it. If a broker/exchange goes on the wrong side, you loose everything. Unless you have your cryptos in cold storage. But still think of all the cash balance you have etc. Itâs a grey area with no proper guidelines and prone to unpredictable events.
Also cryptos are highly volatile.
My question is, why did Indians choose crypto over stock market. Stock market has been here for centuries and itâs also well guided & itâs set in a proper way etc. So, basically itâs not a new thing here, unpredictable events can be prevented upto a certain extent. USA is in 4th place (in terms of population) but over 50% of them invest in stock markets.
What happened in India ? Why did people choose crypto universe over stock markets ? What exactly happened here ?
I request all of you to share your opinions on this topic.
I donât think that the 10 crore number, of people holding crypto in India, is right. It seems like a propaganda of sorts to create a sense of how large Crypto has become given that some regulations around it are expected by the Government. If it seems quite large, the Govt canât really take much tougher actions.
Considering the kind of advertising money that is going into Crypto, potentially there could be 10 crore Indians who have downloaded the app. But canât see how almost 10% of India has made an investment into it.
I donât think the propaganda of âmore than 10 crore crypto holdersâ is going to have any effect on the governmentâs decision to clamp down on it. It may fool others into joining in based on a false sense of security in numbers, though.
My personal view is that this is more of a propaganda and to create a feeling of FOMO so more will join.
I would have agreed if the number was equal to or less than the number of investors in stock market, but having a number greater than stock market investors is something I cant believe especially in crypto. I do understand that we have many who will jump into things just because of a promise to earn higher returns, but getting into crypto require a little more knowledge and understanding (I think).
The general perception of Indians is to save and prefer real estate and fixed deposit. Corona pandemic and low interest rate on FD was one of the results for massive increase in numbers of stock market investors. With this psyche, I strongly believe these numbers of 7.3% of Indians in Crypto as against 4.3% in stock market is propoganda
Honestly they can get these crazy returns in stock market itself especially in derivatives like options.
Oh. All the best! When did you enter the crypto world ? @Lalit_Kishor
this can be true as well, I believe that many rich guys and big institutions are manipulating cryptos, the way it moves is ridiculous. Around may and sep all cryptos crashed as if it was all pre planned. Itâs all over within seconds, at the same time innocent traders who have positions automatically get liquidated and also will get a margin call. I heard that cryptos also have derivatives. This liquidation also further narrows down the fall. The trigger is some one or something manipulative. There was also a big discussion on the internet where a billionaire was mentioned for manipulation.(only on the internet)
This might be true, it makes the people who have not tried crypto feel like âoh! 10 crore indians are investing there, so it might be safe and I can try tooâ
This is also possible @nithin but lets think the other way, who ever has the idea of this propaganda or whoever has this intention. 7.3% and 10 crore is hard to believe. At the same time, do you think the one who has these intention publish ridiculous data ? Like, they will be smarter, there is something else behind this that we are not yet aware. Like imagine, Why will someone post ridiculous numbers when no one is ready to believe it ? This is even higher than stock market itself. Why would someone do this when they know that this is un-believable data ? There is something else inside. What can they achieve by this data when all of us donât believe the info ? Whoever has this intention, is not dumb. (just my view) What do you think about this ?
This is 100% true.
Do not compare rupee with crypto @ZeroIndian Even when 500 rupees is gone, we do have have other notes. Also it is an internal problem. But crypto is decentralized. When it gets bigger and bigger it is like âToo big to fallâ. So, donât compare rupee with crypto.
This does make sense, but at the same time, whoever is behind this is not dumb to post some data that Indians wonât believe. There is no impact when we donât believe it.
(read the whole post) and Iâm not telling that I believe this data, Iâm just thinking other way. (Apologies for a long reply)
@nithin one thing I fail to understand if crypto are alternative to traditional currency why is it treated like an asset class with comparison to equity or gold?
thatâs cool @Lalit_Kishor Just curious to ask these questions to you, Do you trust your broker / exchange ? ,
As there are no proper regulations, do you have cold storage for your cryptos ? and finally which application/broker do you use ?
The reason is that, atleast for Bitcoin, there is a hard upper limit to the number of bitcoins that can be created. After that no more coins can be created.
So people think that since it will be scarce, itâs value will only go up. Same logic was used by DeBeers when they bought up the entire diamond supply, to artificially make diamonds dearer. Restricted supply = inflated value.
Also, since no government can dilute the value of bitcoin, itâs value will go up against currencies. Somewhere on this site only I read that 100 years ago, 1 rupee was equivalent to 13 dollars, now 75 rupees are equivalent to 1 dollar. Therefore people think bitcoin is a hedge against currency depreciation.
Also, bitcoin has become pretty expensive to use as a normal currency (txn costs, time taken, fluctuations in value, etc), so people use it as a âbuy and holdâ, rather than transact with it.
If Bitcoin is used as buy and hold rather than being a replacement to currency then itâs entire purpose for which it is created in first place is lost
True. But the entire crypto space is evolving and trying to find itâs place in the financial world as a legitimate player⌠we donât know where it will actually landâŚ
Also, they have forked Bitcoin into Bitcoin Cash, etc precicely to increase throughput and reduce transaction costs. Iâm sure others coins may have better transaction costs, etcâŚ
But as things stand right now, Bitcoin enthusiasts are trying to position it as a âstore of valueâ because, as a currency alternative, itâs a direct threat to all the reserve banks of the world, and may lead to bans worldwideâŚ
One thing which I fail to understand is that what is the advantage of using Bitcoin as alternative to currency issued by reserve banks ,what I want to buy online i can transact by debit card or other digital method so why I will use a highly fluctuating Bitcoin.
as I earlier said itâs speculation (at least what i think), broker i use wazirx & Binance, i donât care what my broker does as long i get to make good bucks.
My understanding w.r.t Cryptoâs is this - They are here to stay, but not exactly in the form and function currently they are. Itâs like 80âs Internet, nobody exactly knows why it exists but want a slice of it anyway. âShitcoinsâ or Cryptoâs which serve no real world purpose other than âstorage of valueâ (Doge, Shiba Inu etc.,.) will be the first to burst. Bitcoin also comes under this definition, but may take longer or could scrap through and go the goldâs way due to its popularity (Search = Google, Photocopy = Xerox, Blockchain = Bitcoin) you get the drift. Read about Theta Network and its business. It is one such rare example of Blockchain having a real world purpose, where it acts as a decentralized server for streaming videos thereby the downtime is virtually zero. There are many such genuine projects which are very interesting, you got to know where to look. This is the budding of web3, its too big to comprehend. Blockchains are a medium of transaction not the asset itself, then you may ask what is the values & graphs we see in each coin everyday, well it is the way people getting paid for renting their resources, hence the volatility. In web3 it will be impossible to get stuff done and not get paid for it as one is the effect and another is the cause. No free lunches nor a freak employer who doesnât pay. Future will see Blockchain businesses listing on exchanges. Blockchains are not a competition for Stocks, both can and will co-exist.
this can be true as well, I believe that many rich guys and big institutions are manipulating cryptos, the way it moves is ridiculous. Around may and sep all cryptos crashed as if it was all pre planned. Itâs all over within seconds, at the same time innocent traders who have positions automatically get liquidated and also will get a margin call. I heard that cryptos also have derivatives. This liquidation also further narrows down the fall. The trigger is some one or something manipulative. There was also a big discussion on the internet where a billionaire was mentioned for manipulation.(only on the internet)