From round $7,000 on January 1, 2020 to round $17,000 on November 27, 2020, bitcoin has surged through the Covid-19 pandemic. Within the final two month, bitcoin has seen a steep rise – from $10,665 on September 25, 2020 to $19,028 on November 25, 2020 earlier than falling to round $17,000 degree.
However what makes folks take the refuge in cryptocurrency through the pandemic?
“Within the pandemic, many Indians have misplaced jobs, and this has led them to put money into cryptocurrency to earn aspect earnings. Furthermore, numerous new professions have emerged on this area – persons are changing into merchants, technical analysts, or crypto influencers. Many assist their family and friends to put money into crypto as a result of not everybody understands crypto. There are numerous crypto use circumstances which have emerged in India, and have affected Indians in a optimistic manner,” mentioned Nischal Shetty, CEO, WazirX.
“Rising worth of Bitcoin additionally creates a optimistic sentiment, and has pushed retail traders to leap in,” he added.
The most recent surge pushed bitcoins near the best degree of $19,783 that it achieved in late 2017.
However in case the rupee additionally depreciates, will the value of bitcoin see the shoot up from 2017?
“Through the pandemic, some huge cash printing has occurred globally resulting in inflation. The inventory markets have additionally been very shaky. Folks know that inventory market situations depend upon corporations which have, once more, been affected by the pandemic. So folks transfer their cash to make sure that its worth is kind of conserved in a deflationary asset like gold within the conventional system, or Bitcoin within the digital system. Bitcoin has a restricted provide, and is seen as a retailer of worth,” mentioned Shetty.
Offering his opinion on whether or not traders ought to encash or maintain their investments in cryptocurrencies in India at this excessive degree, Shetty mentioned, “What I’m seeing is, folks are actually taking discover of crypto. Lots of people who had purchased crypto in 2017 at excessive charges, and held it it all through, are getting activated, and everybody about what they need to do – maintain it or promote it. There’s confusion out there, and we’ll know extra when it stabilises a bit. In case of bitcoin, 60-70 per cent of traders maintain it as a long-term funding, a small proportion of them holds it for medium time period, and a really small proportion holds it for brief time period.”