The Rise of Cryptocurrency in 2024: What You Need to Know
Cryptocurrency presents itself as an undeniably volatile investment, fraught with numerous challenges. It is imperative for prospective investors to exercise prudence, notwithstanding the growing enthusiasm from financial influencers. Prior to delving into the realm of cryptocurrency or augmenting one’s existing portfolio, it is essential to seek informed financial counsel and to invest only what one can afford to lose.
The global cryptocurrency market has captured significant attention, boasting a market capitalization exceeding $2.5 trillion and reaching a record high of $73,750 in Bitcoin market capitalization on Mar. 14, 2024. Projections suggest that the market is poised to reach $6.6 billion in 2024, with an estimated annual growth rate, culminating in a projected total of $6.4 billion by 2025. Furthermore, it is anticipated that the number of cryptocurrency users will ascend to 107.30 million by 2025, with a user penetration rate of 7.41% in 2024, predicted to rise to 7.35% by 2025.
Taking India into specific consideration, cryptocurrency investment has experienced a notable upsurge, particularly evidenced by a substantial 300% increase in female involvement in Bitcoin and other cryptocurrency investments between June 2023 and Jan. 2024. This has resulted in approximately one in five customers being female, with the majority falling within the 18 to 34-year-old age bracket. These shifting trends, in conjunction with regulatory amendments, render it arduous to precisely quantify the number of Indian users affected.
In the domain of cryptocurrency regulation and taxation in India, the Reserve Bank of India (RBI) prohibited banks from collaborating with cryptocurrency exchanges in 2018. While this embargo was uplifted in 2020, there have been reports suggesting that the Indian government may reenact regulations to prohibit cryptocurrency mining, trading, or possession as personal assets.
The tax policies implemented by the Indian government have resulted in approximately five million cryptocurrency traders relocating their transactions offshore, potentially causing a loss of $420 million in government revenue since the taxation on digital assets was introduced in July 2022.
Regarding the foremost cryptocurrency market players in India, prominent exchanges such as WazirX, CoinDCX, and Zebpay have experienced a substantial surge in trading volumes, with combined trading volumes exceeding $584 million in Mar. 2024. Furthermore, the acclaimed crypto investment platform CoinSwitch witnessed a significant surge in trade volumes from Jan. to Feb. 2024, followed by a staggering surge in March of the same year.
As for the favored crypto assets in India, Dogecoin emerged as the most popular cryptocurrency in 2023, representing 11% of the total invested value, followed by Bitcoin at 8.5% and Ethereum at 6.4%. The crypto market has witnessed a noteworthy increase in deposits and total transactions, along with a surge in new sign-ups.
In conclusion, the cryptocurrency market has demonstrated a persistent state of evolution, both on a global scale and within India. It is imperative for prospective investors to remain abreast of the latest trends, regulations, and market statistics when contemplating entry into the realm of cryptocurrency investment. Empowered with the requisite knowledge and guidance, investors can navigate this intricate landscape and possibly find success in the crypto market.
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