Cryptocurrency business increased amidst RBI concerns, investors attracted by high returns
The trading volume of cryptocurrencies in the country has increased more than 18 times in a year, while its user base has also crossed 10 million.
How will the cryptocurrency market next year
In November, the governor of the Reserve Bank of India had talked about banning cryptocurrency. According to the Reserve Bank, cryptocurrency is a big risk. However, on the contrary, the cryptocurrency business is flourishing in India and the exchanges associated with it are recording manifold volumes. In fact, investors are drawn towards it due to the high returns available in cryptocurrency. Even if the Reserve Bank has an opinion on this.
What is the Reserve Bank’s opinion on Cryptocurrencies
In early December, the RBI told its board that cryptocurrencies should be completely banned. The second concern is to trace its prices and transactions. Apart from this, there will also be a risk for countries like India to manage its foreign exchange, because these money can be withdrawn through digital currency. There will be no need to withdraw in the form of dollars for this. Sharp fluctuations in its prices are also a big concern.
How was the cryptocurrency business in India in 2021
Only last month, the country’s largest crypto exchange WazirX reported that the trading volume of cryptocurrencies through the exchange has increased by more than 18 times in a year. Along with this, there has been a sharp jump in user signups on the exchange and the user base has increased to 10 million. According to the news, the trading volume of WazirX has increased to the level of $ 43 billion. That is, during the year, the buy and sell deals of this value were done through the exchange. This is an increase of 1735 percent compared to 2020. Most of the transactions on the exchange were done in bitcoin. Along with this, a large number of deals are also being done in Tether (USDT), Shiba, Dodgecoin, WazirX Token, Matic.
How did CryptoKitties perform?
In the year 2021, bitcoin had reached new levels of $ 65,000. However, the price continued to fluctuate sharply during the year. At present, bitcoin is below the level of 50 thousand dollars. Supporters of bitcoin are of the opinion that in the coming times, its prices may see stability. In fact, Tesla has started accepting payments in bitcoin. Along with this, it has been recognized in El Salvador. In such a situation, in the year 2022, payment from bitcoin is expected to be recognized in more places. Ethereum’s performance in the year 2021 has been the best. Ethereum has benefited due to its Defi, NFT, Ethereum 2.0, Smart Contracts and Metaverse. Ethereum is quite popular in crypto currency due to faster transactions than bitcoin. At present, Ethereum is below the level of $ 4 thousand. In many reports, Ethereum is estimated to reach 6 thousand dollars by the end of 2022. In the year 2021, Tether has been recognized for its stable performance against other cryptocurrencies. The currency has been performing consistently since the year 2017.
How much was the return in the year
| cryptocurrency | 1 January 2021 | 31 December 2021 | Growth |
| Bitcoin | $29,290 | $47,798.65 | 63% |
| ether | $730.30 | $3,795.88 | 419% |
| Dogecoin | $0.0056 | $0.175341 | 3030% |
What can be the new developments in 2022
If you look at the opinions and reports of experts regarding cryptocurrency, then most believe that in the year 2022, there may be more approval from governments regarding cryptocurrency transactions, although its pace may be more or less in different countries. The picture regarding cryptocurrency in India will be more clear and from the Reserve Bank to the government can find a way between a complete ban to permission with conditions. In fact, the government wants a solution to the security concerns regarding cryptocurrency. Hopefully 2022 can show many directions on this.
At the same time, if foreign experts are to be believed, after Tesla, many more companies can recognize payments in major cryptocurrencies. At the same time, crypto can get legal recognition in some other countries this year as well.
In the year 2022 also, there can be a lot of volatility in the currency. Some reports have given estimates of bitcoin reaching one lakh dollars. However, it has been clearly stated in most of the reports that there are many types of risks in the estimates of crypto currency, in which the government will get to see the effect of the move the most.
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