Should you invest in cryptocurrencies rather than gold this Diwali?

Connect with us

Diwali festival is nearing and Indian citizens are already in preparation. In this festival, Indians plan to invest in physical assets whose value typically increases in the future like houses or so-called gold. But, investment pools have become vast and diverse with each passing time. Market-related instruments like stocks, mutual funds, SIPs, and ETFs among others have also gained popularity. That being said, the demand for cryptocurrencies has also gained momentum as investors’ appetite accelerates in this market. Cryptocurrencies are digital or virtual form of currency that utilises cryptography for secure transactions.

In recent times, cryptocurrencies have opened many job opportunities, unique and wide investment platforms, rise in startups, and further strengthening of the blockchain industry worldwide. They are often referred to as new-age investment schemes. Many companies and countries are warming up to cryptocurrencies. In Q2 of 2022, as per Chainalysis data, Vietnam, the Philippines, Ukraine, India, the US, Pakistan, Brazil, Thailand, Russia, and China are among the top 10 countries for cryptocurrency adoption globally.

But just like every market-related instrument, cryptocurrencies also have their risks. Some of these are — high sentimental driven, sensitive to cyber threats, deeply volatile, have no regulatory backups, and lack clarity.

So, should you invest in cryptocurrencies this Diwali with your bonuses? During this festival, citizens receive monetary and other forms of gifts from their friends and families. While many companies give bonuses to their employees.

Abhijit Shukla – CEO & founder of Tarality & Revolution Games said, “In India, there is a culture of purchasing gold during occasions and festivals with the rationale that it can serve as a hedge during financial crisis. Traditionally, before Diwali, people have stuck to buying precious metals like gold. However, with technology making investments convenient and more transparent, tech-savvy urban young population are investing in crypto and Bitcoin, which are being seen as the new gold, or the digital gold of today.”

Shukla added further, “Crypto has the ability to emerge as the best investment option in the festival season to fund the future. This can be attributed to people looking for alternative sources of investment, growing Internet penetration, and people losing interest in the traditional financial ecosystem. People are now recognizing crypto as an alternative to traditional investment mediums. Millennials believe that these traits combined with global availability and high liquidity make it ideal for storing wealth for longer durations, believing the value will escalate over time.”

As per CoinMarketCap data, currently, there are 21,254 cryptocurrencies traded on 526 exchanges. The numbers have risen significantly in past few years.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Leave a Reply

Your email address will not be published. Required fields are marked *