{"id":572,"date":"2020-11-27T16:38:51","date_gmt":"2020-11-27T11:08:51","guid":{"rendered":"https:\/\/www.eqwires.com\/tutorials\/?p=572"},"modified":"2020-11-27T16:38:51","modified_gmt":"2020-11-27T11:08:51","slug":"indian-cryptocurrency-startups-victory-bigger-than-the-price-of-bitcoin","status":"publish","type":"post","link":"https:\/\/www.eqwires.com\/tutorials\/indian-cryptocurrency-startups-victory-bigger-than-the-price-of-bitcoin\/","title":{"rendered":"Indian cryptocurrency startups\u2019 victory bigger than the price of Bitcoin"},"content":{"rendered":"\n

With the speed cryptocurrency is emerging as the Millennial generation\u2019s alternative asset of choice in India, it\u2019s hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old startup, were arrested in late 2018. No, they hadn\u2019t pulled off a shady initial coin offering. Their \u201ccrime\u201d was that they put up a kiosk in a mall in Bangalore where customers could swap Bitcoin, Ether or Ripple for cash or vice versa. That was the whole point of Unocoin, their crypto token exchange. But the police were suspicious of the new-fangled \u201cATM.\u201d<\/p>\n\n\n\n

A lot has changed since then. Unocoin, which just raised financing from Tesla Inc.-backer Tim Draper\u2019s Draper Associates, is flourishing, together with other Indian blockchain ventures. India\u2019s share of person-to-person virtual-currency trading in Asia has surged to 33%, the same as in China, according to Oslo-based Arcane Research\u2019s analysis of volumes on Paxful and LocalBitcoins, the biggest platforms for transactions in the region.<\/p>\n\n\n\n

Some of this is no doubt due to the bubbly rise this year in Bitcoin, which recently came within $100 of its all-time high after surpassing $19,000 for the first time since 2017. Even after Thursday\u2019s wobble, prices have still more than doubled this year.<\/p>\n\n\n\n

But fundamental factors are also at play. Sending money to India in a tokenized form, and thus avoiding hefty bank charges, is becoming an option. Some customers of digital-asset exchanges, probably tech-savvy freelancers, receive tokens at regular intervals as payment for their work and convert them into rupees via their local bank accounts. Families in India are using the same channel to send money to students overseas.<\/p>\n\n\n\n

Having the world\u2019s largest diaspora \u2014 and more than $100 billion in two-way money flows last year \u2014 isn\u2019t the only thing. Prime Minister Narendra Modi\u2019s disastrous ban on 86% of the country\u2019s currency in November 2016 shook Indians\u2019 faith in fiat money. Add the fear of leaving spare cash in banks when three major deposit-taking institutions have crumbled in the past 15 months. No wonder Arcane expects Indian crypto volumes to overtake China\u2019s.<\/p>\n\n\n\n

The domestic asset management industry is also helping adoption of crypto \u2014 by its incompetence. Most large-cap fund managers have struggled to beat their benchmarks, especially in recent years. The Nifty 50 index has returned only about 2% annually in dollar terms over the past decade. Yet, as Bloomberg Intelligence\u2019s Gaurav Patankar and Morgan Barna have shown, lack of performance hasn\u2019t kept managers from pocketing high fees.<\/p>\n\n\n\n

Disgruntled younger savers are taking note, and dipping their toes in U.S. exchange-traded funds. At 1%, international allocation is still tiny, the Bloomberg Intelligence analysts say, but it\u2019s growing rapidly. Ditto for crypto-investing, even though holding a highly volatile digital asset over the long term isn\u2019t for the faint of heart. Only 600 of Unocoin\u2019s 1.2 million customers have started a systematic buying plan to invest (mostly) in Bitcoin. But 99.5% of them are sitting on profit, and must be bragging about it to their friends.<\/p>\n\n\n\n

There\u2019s one dampener: regulation. Nobody wants a return to 2018, when the Reserve Bank, the monetary authority, instructed banks not to entertain customers who dealt in virtual currency. The draconian approach nearly strangled India\u2019s blockchain revolution. The action against Unocoin\u2019s kiosk in Bangalore was like the heavy hand of the state crashing down on a kids\u2019 lemonade stand. If folks in India\u2019s technology capital couldn\u2019t pay cash to buy digital tokens, then the asset was effectively being banned nationwide.<\/p>\n\n\n\n

In hindsight, the founders\u2019 ordeal with the police proved to be a blessing in disguise. Young entrepreneurs joined together, went to the Supreme Court in New Delhi and got the RBI\u2019s direction to banks declared unconstitutional. That was in March. Already, the exchange has seen a fivefold jump in trading, averaging $150,000 a day, from $30,000 before the court\u2019s verdict. Of late, trading is much higher, thanks to the rally in Bitcoin prices. Larger bourses such as CoinDCX were witnessing daily volumes of almost $700,000, when I last checked.<\/p>\n\n\n\n

The players are urging the government to bring digital assets under the existing money-laundering law, which will give the industry legitimacy. The next step would be to regulate the tokens as money or securities, depending on their use.<\/p>\n\n\n\n

India\u2019s phlegmatic bureaucracy may wonder if this is all a craze. Perhaps not. It isn\u2019t even unique to Indian Millennial and Generation Z consumers. Wringing the global banking industry dry of its exorbitant fees, and putting more purchasing power in people\u2019s hands after the Covid-19 pandemic, will be a worldwide goal. In their study titled, \u201cWhat We Must Do to Rebuild,\u201d Deutsche Bank AG economists are advising companies and policy makers to design alternatives to credit cards and \u201cremove middleman fees.\u201d In the short run, conventional fintech will help, but in the longer term, major economies will all do this by replacing cash with their own central bank digital currencies.<\/p>\n\n\n\n

That\u2019s when older consumers will join in. If they don\u2019t, they\u2019ll get get stuck, and not just figuratively. Automatically triggered crypto \u201csmart contracts\u201c will make it possible for self-driving cars to switch lanes faster than others. Commuters will be continuously paying one another in official digital currencies \u2014 or in stablecoins like Facebook Inc.\u2019s proposed Libra, private tokens whose values are fixed against fiat money.<\/p>\n\n\n\n

The Indian Millennials have read the tea leaves right.<\/p>\n\n\n\n

Eqwires Research Analyst<\/strong><\/h2>\n\n\n\n

Top-notch SEBI registered research analyst<\/a><\/strong><\/p>\n\n\n\n

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company<\/strong><\/a><\/p>\n\n\n\n

info@eqwires.com<\/strong><\/a><\/p>\n\n\n\n

Call: +91 9624421555 \/ +91 9624461555<\/em><\/strong><\/p>\n\n\n\n

www.eqwires.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

With the speed cryptocurrency is emerging as the Millennial generation\u2019s alternative asset of choice in India, it\u2019s hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old startup, were arrested in late 2018. No, they hadn\u2019t pulled off a shady initial coin offering. Their \u201ccrime\u201d was that they put up a kiosk in a mall in Bangalore … Continue reading “Indian cryptocurrency startups\u2019 victory bigger than the price of Bitcoin”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":573,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[201,172,136,138,134,164,217,139,140,106,272,266,98,72,97,184,73,268,135,137,133,104,141,161,160,159,74,210,75,158,166,228,227,103,254,102,224,257,101,105,165,76,77,78,79,247,215,216,174,80,81,99,218,82,183,168,167,170,251,83,84,85,86,87,108,88,202,155,154,273,89,100,90,91,92,93,94,95,236,255,232,231,250,96,3,260,252,248,249,107,192,220,275,223,156,157,246,238,207,177,176,175],"tags":[4,5,267,6,200,7,12,116,19,149,147,173,145,14,118,11,150,153,265,120,9,271,190,191,13,188,18,8,185,10,17,269,148,151,146,15,16,122,144,162,23,41,25,24,27,21,194,50,229,226,124,33,253,126,225,119,20,258,28,49,127,121,230,125,115,22,113,29,52,123,131,245,213,26,182,111,130,31,62,34,30,42,219,57,112,186,169,56,171,64,132,206,59,53,264,128,43,242,237,51,110,32,187,35,55,44,270,196,47,37,195,45,39,36,40,203,38,143,152,129,142,46,48,63,67,60,61,65,234,71,235,54,256,117,233,68,193,241,205,261,263,209,262,243,244,240,66,204,70,109,259,221,274,222,163,69,58,239,208,114,178,181,179,180],"class_list":["post-572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accurate-stock-tips-provider-in-india","category-best-advisory-service-provider-for-beginners","category-best-bank-nifty-future-calls","category-best-bank-nifty-options-tips-provider","category-best-bank-nifty-trading-tips-provider","category-best-equity-advisory-services-in-india","category-best-ethical-investment-advisor-in-india","category-best-index-future-services","category-best-index-options-services","category-best-intraday-call-provider","category-best-intraday-jackpot-calls","category-best-intraday-research-company","category-best-intraday-tips-for-tomorrow","category-best-intraday-tips-provider-in-india","category-best-intraday-tips-site","category-best-intraday-tips-website-in-india","category-best-investment-advisor-in-india","category-best-jackpot-tips-provider","category-best-nifty-future-calls","category-best-nifty-options-tips-provider","category-best-nifty-trading-tips-provider","category-best-options-tips-provider-in-india","category-best-options-trading-tips-provider-in-india","category-best-performing-pms-in-india","category-best-pms-in-india","category-best-portfolio-management-services-in-india","category-best-sebi-registered-advisory-company","category-best-sebi-registered-investment-advisor","category-best-sebi-registered-investment","category-best-sebi-registered-research-analyst","category-best-sebi-registered-stock-tips-provider","category-best-share-market-advisor-in-india","category-best-share-market-advisory-company-in-india","category-best-share-market-consultants-in-india","category-best-share-market-tips","category-best-share-market-tips-provider-in-india","category-best-share-tips-provider-in-india","category-best-stock-advisor","category-best-stock-market-advisory-services-in-india","category-best-stock-market-tips-provider-service","category-best-stock-tips-provider-in-india","category-business","category-commodity-market","category-currency","category-equity-market","category-equity-research-analyst","category-ethical-sebi-registered-investment-advisor","category-ethical-sebi-registered-research-analyst","category-fact-about-operator-based-calls","category-fii-based-calls","category-foreign-markets","category-free-intraday-stock-tips-for-tomorrow","category-genuine-intraday-tips-provider","category-genuine-stocks-tips-provider","category-how-can-i-make-profit-in-intraday-trading","category-how-to-earn-profit-from-intraday-trading","category-how-to-invest-in-stock-market","category-how-to-make-profit-in-intraday-trading-in-share-market","category-intraday-tips","category-intraday-trading-tips","category-intraday-trading-tips-strategies","category-investment-adviser","category-investments","category-it-industry","category-jackpot-intraday-tips","category-most-accurate-stock-tips-provider","category-most-successful-intraday-strategy","category-most-successful-intraday-tips-provider","category-most-successful-stock-advisor-in-india","category-most-successful-stock-advisors-in-india","category-news","category-nifty-intraday-trading-tips","category-nse-fo","category-operator-based-calls","category-politics","category-portfolio-management-services","category-promotions","category-sebi-registered-advisory-company","category-sebi-registered-advisory-company-in-india","category-sebi-registered-best-investment-advisory","category-sebi-registered-investment-advisor","category-sebi-registered-research-analyst","category-share-market-tips","category-stock-market","category-stock-market-basics","category-stock-market-expert-in-india","category-stock-market-tips","category-stock-market-tips-india","category-stock-tips","category-sureshot-tips-provider","category-top-10-advisory-company","category-top-10-i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