Zerodha founder Nitin Kamath said that the demand for cryptocurrencies has increased so much that even the government is forced to maintain the status quo. After the regulation comes, the interest of investors in this will increase manifold.
The worst part of trading is that not every trader can make money from the market.
Nitin Kamath, founder of Zerodha, India’s highest-paid boss and one of the brokers who rocked the brokerage world, said cryptocurrencies have the potential to shake up online brokerages and stock exchanges. He said that the business of exchange and brokerage is now saturating. The reason for this is that the scope of product and pricing has become limited. Right now there are about 1 million traders who trade in the market on a daily basis and its business is based on this.
He said that there is no rule of negative brokerage in the business of brokerage and it is also not allowed by regulation. Negative brokerage means, when the brokerage firm starts giving place to take money from traders for trading. He said that the worst thing about trading is that not every trader can make money from the market.
Fundamental information does not make sense in cryptocurrencies
He said that there are many such benefits associated with cryptocurrencies. It has high leverage, high volatility and the market is open for 24 hours. Fundamental and technical know-how doesn’t make any sense in the world of cryptocurrencies like the stock market. It is completely based on sentiment. Despite this, the asset under management of Coinbase is $ 180 billion, while the AUM of Robinhood Crypto is about $ 12 billion.
This market is still very small in India
Talking about India, the cryptocurrency market is still very small. The situation which was in the US regarding cryptocurrencies a few years ago is today in India. There is no concrete regulation in India regarding this yet. In such a situation, no regulated body is making cryptocurrency available on its platform.
India ranks second in cryptocurrency acceptance
Talking about the status of cryptocurrencies in India, it is second in the world in terms of acceptability. India came second in the 2021 Global Crypto Adoption Index. In this matter, he has left behind countries like China, America and England. Domestic cryptocurrency exchange CoinSwitch Kuber has more than 10 million registered users, while active users there are close to 7 million.
Monthly transaction of more than 15 thousand crores
Transactions are being done on CoinSwitch Kuber from 4000 small and big cities of the country and every month about 15138 crore transactions are being done. 75 percent of these users are 24 years old. 55 percent of the users are from Tier-2 and Tier-3 cities like Patna, Karnal, Ghaziabad.
Government is also bringing law
This is the reason why the government is now coming up with a cryptocurrency bill to regulate cryptocurrencies. It is believed that cryptocurrencies will get the status of a commodity in India and all the rules ranging from tax will be according to that. When the government comes with a concrete policy regarding this, then the confidence of the investors will increase towards it. In such a situation, retail investors, entrepreneurs, venture capitalists who are still afraid, they will openly invest in it. This will give strength to the traders and they will be attracted towards it. This will hurt the broking industry a lot.
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