Bitcoin is a digital currency that operates on a decentralized platform without the need for a central bank or government. It is a virtual currency that uses cryptography to secure its transactions, and its decentralized nature makes it a popular choice for those who want to avoid the restrictions imposed by traditional financial institutions. In India, the use of Bitcoin has been a topic of debate for quite some time, and there has been confusion regarding the legality and the amount of Bitcoin in the country.
The Reserve Bank of India (RBI) had previously issued a circular in 2018, which prohibited banks and other financial institutions from dealing with cryptocurrency transactions. However, in March 2020, the Supreme Court of India overturned the ban imposed by the RBI, stating that it was unconstitutional. Since then, there has been a steady increase in the number of people in India investing in Bitcoin.
According to Coin Dance, a website that tracks Bitcoin trading volumes in different countries, India is among the top 10 countries in terms of Bitcoin trading volumes. As of July 2021, the weekly trading volume of Bitcoin in India was around $4.4 million, which is a significant increase from the previous year.
In terms of the total amount of Bitcoin in India, it is difficult to estimate the exact number, as Bitcoin transactions are anonymous and decentralized. However, it is estimated that around 1.5 million Indians hold Bitcoin, and the total value of Bitcoin in India is around $1.5 billion.
The increasing popularity of Bitcoin in India can be attributed to several factors. Firstly, the pandemic has led to an increase in online transactions and the need for contactless payments. Bitcoin, being a digital currency, provides a convenient and secure way to make transactions without the need for physical contact.
Secondly, the Indian economy has been struggling in recent years, with high inflation rates, a weak currency, and a lack of job opportunities. Bitcoin provides an alternative investment option, which many Indians see as a way to protect their wealth against inflation and currency depreciation.
Lastly, the increasing awareness and education about Bitcoin and its benefits have also contributed to its popularity in India. There are several online communities, forums, and social media groups dedicated to Bitcoin, where people can learn more about it and share their experiences.
In conclusion, the amount of Bitcoin in India is difficult to estimate, but it is clear that the digital currency is gaining popularity in the country. The overturning of the RBI ban and the increase in online transactions have contributed to the growth of Bitcoin in India. With more education and awareness, it is likely that the number of people investing in Bitcoin will continue to increase in the coming years. However, it is important to note that Bitcoin is a highly volatile and speculative asset, and investors should exercise caution and do their due diligence before investing in it.