Cryptocurrency is not that popular in India but the Urban Population are now more interested in the digital currency. A new study by the YouGov says that cryptocurrencies as an asset class have generated a fair amount of awareness as well as purchase intention amongst urban Indians.
The YouGov says that a third of the 1000 polled (overall close to 60 percent) said they are very likely to consider investing in the digital currency in 2021, However, the survey found that almost a fourth of all respondents (about 23 per cent) are unsure about investing in the online currency. It said that investing in virtual coins is more popular among younger generations such as millennials (64 per cent) and Gen Z (62 per cent) as compared to the Gen X (55 per cent) respondents.
Among the cryptocurrencies available, 50 per cent of the respondents said they preferred Bitcoin. Dogecoin followed this with 31 per cent preference. Meanwhile 30 per cent preferred Ethereum. Other popular digital coins are BCH, Litecoin, USD coin, TRON and Binance. The YouGov said that Wazir X emerged as the most popular platform choice among Indians. One in five people surveyed said that they are likely to invest through this. About one in seven are likely to use CoinSwitch Kuber (13per cent) or Coinbase (11 percent).
The Survey said that the key driver for most urban Indians to invest in online currencies is because of the promise of high returns in a short time. Other reason is high liquidity, through which one can easily buy and sell cryptocurrencies in case of need (48 per cent). About 51 per cent of the urban Indians find lack of government regulations on cryptocurrencies to be a key factor discouraging them from investing in them. The government is yet to issue a regulatory stance on this new asset class. Once done, it would enhance people’s confidence in digital money
Moreover, Urban population find lack of information and cyber threats related with digital currency. However, price volatility (39 per cent) and lack of an inherent value (35 per cent) of cryptocurrencies are less of a concern as compared to the other factors.
MOTIVATION TO INVEST
Many of the participants in the survey pointed out that increasing awareness about investment apps for crypto trading might encourage online currency.