Teenagers in India are becoming the world’s newest cryptocurrency fans.
India Has Had a Weird Relationship with Crypto
India has had a very up and down relationship with digital currency. In the year 2018, for example, the nation’s central bank decided that crypto companies could not get access to bank accounts, and that standard financial institutions would not be permitted to work with any firm that delved in bitcoin or blockchain technology.
After two years, however, the ruling was labeled unconstitutional, and the ban came to a sudden end. From there, it was believed that India would be the next big crypto trading haven, and for a while, it certainly was… Until the Indian Parliament announced that it was suddenly looking into a full crypto ban that would ultimately bring an end to trading and many other digital currency-related activities.
Despite all these issues, the younger crowds of India have grown rather fond of bitcoin and its digital counterparts and have become the latest generations to become big digital currency investors. In 2021 alone, residents of India have plunked down approximately $6.6 billion into digital currencies. This is up from the already impressive $923 million recorded in 2020.
It seems that many of these younger investors are drawn to the fact that while volatile, cryptocurrencies can ultimately lead to one garnering huge profits and rewards. In addition, they say that crypto investing is a great way to beat the boredom that has stemmed from being locked in thanks to the ongoing coronavirus pandemic.
Hashir Hussain is a 17-year-old student from Kolkata. In a recent interview, he talks about why he’s so attracted to the world of crypto as of late:
As an investor, I think cryptocurrencies are a good way to exponentially grow your wealth. High volatility is a risk factor, but the profitability is a great plus.
As it turns out, many cryptocurrency exchanges based in India do not allow traders to engage in digital currency activity if they are less than 18 years of age. Many teenagers are finding ways to get by this rule by utilizing the credentials of their parents. Hussain is one of those people, stating:
I saw that the blockchain system is convenient and futuristic. It’s better to invest at an early age in new innovations.
A Little Goes In, a Lot Comes Out
Another big attraction is that many of these exchanges allow one to invest very little. This way, traders can experience less risk and thus garner more for the money they put in. Prabh Simran is a 19-year-old medical student based in Punjab. He recently stated that some of the trades he’s engaged in have brought him “1,000 percent returns.” He says:
Bank deposits hardly give us five percent in a year. I made sure my parents believed in cryptocurrency via small initial investments. Obviously, they’re liking the gains.