There is indeed a growing demand for cryptocurrency. While Bitcoin was the first to mark its entry into the global market, today there are more than 14000 cryptos available globally. Blockchain technology is the primary advantage. Cryptos make use of cryptography encryption making every transaction secure. The decentralized finance model is another key advantage. There are no regulatory agencies monitoring user transactions. Lack of intervention by central banks, regulatory agencies makes this investment lucrative.
With decentralized finance, let us look at other key benefits of crypto investments.
Equal benefits to merchants and clients - Many retailers are now accepting cryptocurrencies in exchange for their goods and services using the crypto genius official site. Despite market fluctuations and price volatility, there is increased acceptance of crypto payments.
Eliminate third-party intervention – every transaction undertaken through the traditional banking system is monitored. Central banks and regulatory agencies can always trace back your transaction history. But, this third-party intervention is eliminated with crypto payments. No bank and intermediary agency is tracing your transactions.
New development opportunities for tech enthusiasts – With a large amount of data mining, it is necessary to adopt less energy-consuming solutions. The growing crypto market will pave way for technology enthusiasts to find alternate ways to reduce energy consumption.
As of 2021, there are more than 300 million crypto users across the globe. The total market capitalization of cryptos is at $2 trillion.
Crypto investments in India
Cryptocurrencies have always been a hot topic for discussion in the Indian market. According to a recent study, there are more than 10 crore crypto investors in India. These metrics put India ahead of all other leading countries. Despite growth in investments, there are no regulations on crypto investment. The government recently announced crypto investments will document as an asset class. There will be a 30% tax levied on crypto investments from the current fiscal year.
Along with India, let us look at the other 4 countries that top the list on crypto investments.
USA
The USA ranks second in crypto investment. This will give you a fair idea of the accessibility of cryptos in the US market. There are no regulations or financial authorities monitoring crypto transactions. But, the government has clarified that buying and selling of cryptos are legal in the country. Every state government needs to develop its protocols to track crypto transactions. In the US, cryptocurrencies are classified as commodities, property assets, or securities.
Russia
Approximately, 1.74 crore investors have their funds floating in cryptocurrency. As of date, Russia occupies the third position in overall investment. But, last Tuesday Russia announced the country will not accept cryptos as a legal medium of exchange. There is a complete ban on crypto payments and mining activity in Russia. Actions shall be initiated against citizens found violating the order.
Nigeria
In 2021, Nigeria banned the use of cryptocurrencies. But, this ban was followed by the launch of their native crypto eNaira. Nigeria is the second country to launch its cryptocurrency. There is no ban on other cryptocurrencies in Nigeria. But, transactions on altcoins other than eNaira are unregulated.
Brazil
Brazil is last in the list of top 4 countries with the highest volume of crypto investments. As of date, there are more than 10 million investors in crypto. This is higher as compared to the total stock holdings. Brazilians have invested $16 billion in US stocks. But, the total investment in crypto is %50 billion as of November 2021. The total investment has tripled in the past years. Many exchanges have entered the Brazilian market. These exchanges make buying and selling coins and tokens easy.
Many brands have been accepting crypto investments. This is another reason for the growing demand for cryptos. Besides bitcoins, there are other altcoins as well that have entered the market in the past 05 years. Cryptos are now available from as low as $0.002 to $40000 per coin.
Other than brands, industries also now accept crypto payments. Ranging from gaming, luxury, retail to banking every industry now accepts crypto payments. This makes payments easier. Unlike traditional currency, there is no intervention by any third-party agency. This makes your transactions secure.