The cryptocurrency market caps to a net worth over $10 Bn, as per the recent industry estimates. We are, at present, on the verge of a new global economic boom with millennials taking the lead. Millennials in India, unlike their foreign counterparts, are taught to save and invest money since childhood. This traditional teaching has ensued in them being keen on investing money in the right commodities. Today, they have a new commodity to invest in – Bitcoin.
Bitcoins are a digital currency, made by computers, whose prices are validated through a public ledger.
Indian millennials being wiser and more tech-savvy than their previous generations will benefit more from bitcoins. Famed finance guru, Dennis Gartman referred bitcoin to be the ‘Millennial Answer to Gold’. He opined that it is difficult for a person with limited knowledge of the traditional market to adapt the idea and mechanism of free markets. The new generation knows how this virtual gold can be the new store of value and can be the answer to their investment demands.
Bitcoin Versus Gold Assets
Gold can sometimes be cumbersome to store and unsuitable for small transactions. The gold bullion might not be easy to keep away for any tax evading organisation. Even if they are outside the banking system, they are still vulnerable to any theft if kept at great values. This is where bitcoins has turned tables to become a better and safer mode of payments. They are much simpler for storage, trading and transfers.
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Despite this difference, there is a big similarity between this virtual gold and physical gold. Both of them exist outside the regular banking system.
In India, every month, bitcoin wallets are adding more than 100,000 users, most of which comprises a blend of investors. Traditional investors are seeking new ventures for making the most of their money, while the millennials (from the age range of 18-35) are interested to experiment with this avenue. These are the ones, who are trying their best to decode the world of bitcoins. This blend has widened the horizons for everyone in a virtual space.
The tremendous growth of technology and increased understanding of the layman of how blockchain technology works has instilled confidence in users. The current price of a bitcoin is INR 52,700 in Indian markets and $715 worldwide. Famous American venture capital investor, Tim Draper predicts this price to grow up to 10000$ by 2018.
This explains why a whole lot of investors have developed interest in bitcoins. They believe it to a better and futuristic way of saving and investing money. The Indian millennials, who are working within or outside the Indian geographies, have clarity on this system.
With the current demonetisation of Indian currency and other such unpredictable moves, the Indian millennial has agreed on digital assets being the future of investment. The industry is witnessing unseen milestones and it’s safe to assume that bitcoins could be the next ‘virtual gold’ which we can look up to.