The crypto tech blockchain attracts young investors despite the risks

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If you had invested Rs 1 lakh in bitcoin a year ago, it would now have been worth almost Rs 1.7 lakh, despite a nearly 30% drop from its all-time high. By comparison, the same amount invested in sensex would have grown to around Rs 1.2 lakh.
An increasing number of Indians are investing in cryptocurrencies despite the extreme volatility and lack of regulation. But the trend isn’t just due to the prospect of high returns. Some have relied on cryptocurrencies to bet on blockchain technology, while other well-designed trading apps have attracted others. TOI spoke to young cryptocurrency investors to understand their goals, strategies and fears as uncertainties persist into 2022.
Blockchain, a secure and decentralized ledger that enables cryptocurrencies, has been the focus of many advocates. “My family faced several problems in relocating the land. The blockchain could help solve these log management problems, “said an app developer based in Bengaluru. The cryptocurrency investors TOI spoke to did not want to be named.
A law student said that cryptocurrencies were much more than an investment option to him. “I like its focus on decentralization. The blockchain can solve many problems in terms of duplication and transparency. ”
Investors are aware that cryptocurrencies will not be allowed for payments. For them, it is simply a bet on futuristic technology that governments cannot ignore. However, they are wary of their monetary exposure to cryptocurrencies in case a ban is announced. Many have said they only invest what they can afford to lose. The Bengaluru-based app developer invested less than Rs 1 lakh, while another investor only committed 5% of his portfolio to cryptocurrencies.
For others, cryptocurrencies are hard to ignore due to the ease of investing. “The technology that cryptocurrency exchanges have created for UI / UX (user interface / user experience) makes the transaction very easy for users. Even the largest banks are unable to simplify what appears on the screen when trading stocks, “said one investor.
A 26-year-old investor based in Gurgaon said he opened an account with a cryptocurrency exchange after seeing a TV commercial in May. “In the first place, it was only for investment. But once I began to understand the technology behind cryptocurrencies, I invested more, “he said. The young man, who works in his family business, saw his Rs 3 lakh investment grow nearly threefold in less than a year.
Most of these investors have similar strategies: buy on declines and sell only when needed. However, cryptocurrency investors do not have a complaint resolution mechanism. “Banks continue to arbitrarily disable services to cryptocurrency exchanges. As a result, depositing or withdrawing funds is a nightmare, “said one investor. Due to a lack of regulation and fears of a ban, some Indians have even shifted their investments to foreign cryptocurrency exchanges. Blockchain advocates are also worry about traps like “shitcoin,” a term used to refer to cryptocurrencies that don’t have a specified function or innovative quality.
While the past two years have seen strong rallies, 2022 may not be a good year for bitcoin. “On the technical charts, Bitcoin is showing a bearish trend in both the short and medium term,” said Rajendra Agarwal, technical analysis trainer and founder of Autus Investment.
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