Indian cryptocurrency boom: The incredible 2021 chart

Indian cryptocurrency investors are far more exuberant in 2021 than their global counterparts, new data has revealed.

Asia Markets has analysed statistics from Google trends, which shows Indians are searching the term ‘cryptocurrency’ far more often this year than they did during the bull run of 2017.

It is an indication that as China turns its back on cryptocurrencies, India is stepping in to fill the void it leaves behind.

Here’s the chart:

Indian cryptocurrency
Data obtained from Google trends.

Compare India’s graph to those of other countries around the world, and you’ll see this is not a shared phenomenon.

In the United States, ‘cryptocurrency’ searches have increased in 2021, but not to levels higher than in 2017:

Indian cryptocurrency
Data obtained from Google trends.

And here’s what the picture looks like globally:

Indian cryptocurrency

So why are Indian cryptocurrency investors leading the world in such a significant way? Well, there are several possible reasons:

Indian cryptocurrency investors want freedom from poverty

In a country where around 84 million people live in extreme poverty, the lure of large returns can be difficult to resist at the best of times, but 2021 has presented an entirely new ball game.

Covid-19 has hit India as hard as any country in the world, and the nation’s economy has not escaped unharmed.

It is entirely feasible that the resulting financial pressures are forcing an increasing number of Indians to take higher risks in the search for life-changing (or perhaps in some cases ‘life-saving’) profits.

Indian cryptocurrency investors enjoying softer regulations

India’s central bank banned cryptocurrencies for a brief period in 2018, but is now sitting on the fence.

Government officials have been quoted as saying they prefer a “framework” for regulating the market and has recently resisted calls for a hardline stance.

It would be fair to say the regulatory environment is more crypto-friendly than it was during the bull run of 2017, potentially accounting for some of the increased demand for crypto this time around.

Source: Twitter

India’s unique advantages

Amid claims cryptocurrencies are headed for an enormous end-of-year rally, Indian cryptocurrency investors could be best positioned to cash in.

The people of China, for example, will be hampered by their country’s ban on cryptocurrencies, while the United States is still very much focussed on the so-called ‘Web-2,’ on which it has built several world-leading businesses.

“Indians don’t have an investment in the web2 past (and) don’t have a ban on the web3 future,” said prominent entrepreneur Balaji Srinivasan.

“Could be a recipe to do well.”

But a the same time, Indians who’ve taken the plunge in the emerging asset class also face losing what little money they have if and when the market takes a turn.

Let’s hope the “cryptocurrency” Google search results are explaining both the risks and rewards.

Indian cryptocurrency report shows nation leading the world

A 2021 report from blockchain research form ‘Chainalysis’ shows Vietnam and India are the leading countries in terms of cryptocurrency adoption.

Chainalysis used three different metrics to rate countries for the 2021 index. They were:

  • The total value of crypto received by a country
  • Crypto exchanged by non-professional cryptocurrency investors, and;
  • ‘Peer-to-peer’ exchange-traded volume.

Kim Grauer, head of research at Chainalysis, says the estimates given in the report are likely to be the best in terms of country-specific cryptocurrency data.

“Vietnam is strong across the board. India is strong in total value received, Pakistan is strong in P2P marketplaces and they’re at the top three of our index,” Grauer said.

Indian cryptocurrency outlook for 2022

At the time of publication, the cryptocurrency market is hot. Potentially over-heated.

What 2022 holds will depend on the trajectory of prices and investor sentiment, but one thing is guaranteed – if the market continues to surge, Indian cryptocurrency investors will be at the forefront.