Anticipated Number of Crypto Users in India in the Next Five Years

Crypto users in India in the next 5 years: What to Expect?

It is expected that the number of crypto users in India will get bigger than all other big countries like the US, UK, Russia, and Japan this year. By the end of 2023, India is projected to have more than 20 million crypto users.

The prominent reason for this growth in India is that people are turning to cryptocurrencies as a better investment option since they find the traditional banking system to be inconsistent and non-profitable.

As per data from the previous year, 45% of Indian crypto investors lie between the ages of 18 and 25, while 34% of users fall between the ages of 26 and 35.

Setting the stage for the crypto market in India

The crypto market in India is gradually taking shape, despite regulatory challenges.

Once the government comes up with regulations on cryptocurrency, it will play a major role in shaping the future of cryptocurrencies in the country. This ongoing journey promises to bring both opportunities and uncertainties to the Indian crypto market.

Despite the non-supportive role played by the Indian government, more than 15 million users in India are investing in cryptocurrencies.

Key statistics and trends

The revenue in the crypto market is expected to reach $222.7 million, roughly, in 2023. Bitcoin is the most popular cryptocurrency in India, with around 12.12% of investment going towards it.

After Bitcoin, people also invest in DOGE (11.54%), Ethereum (9.43%), Shiba Inu (6.92%), and Polygon (4.3%). It's worth noting that Dogecoin and Shiba Inu are meme coins that are influenced by internet jokes, and they tend to stay more volatile than others.

The Phenomenal Growth of Crypto Enthusiasts in India

As per some reports, the crypto community in India experienced a remarkable fourfold surge between 2017 and 2020, catapulting the user base from 4.8 million to an impressive 17.8 million. There has been a terrific rise in crypto users of more than 760% between 2017 and 2022.

In the wake of the COVID-19 pandemic, an astonishing 60 million Indians ventured into the world of cryptocurrencies between 2020 and 2021, propelling the total number of users to a staggering 77.6 million.

In the span of 2023 to 2027, a projected surge of nearly 60% is anticipated, pushing the user count to an estimated 50 million.

The user penetration will be around 14.52% in 2023, and it is expected to rise to 22.37% in 2027.

The most followed crypto is Bitcoin, and here’s how Bitcoin performed in the past five years. Over the past five years, we have seen some remarkable fluctuations in Bitcoin’s price. Starting at $3,709.4 in 2018, it surged to $7,196.4 in 2019, then skyrocketed to $28,949.4 in 2020. 2021 witnessed a peak at $46,219.5, but in 2022, it corrected to $16,537.4. As of now, in 2023, it hovers around $35,228.3, illustrating Bitcoin's volatile yet potentially rewarding journey.

Analyzing the Overlap and Distinctiveness of DEMAT and Crypto Users in India

The count of demat accounts in India has surged to 12.7 crore, which is a substantial increase of 26 percent. This growth can be attributed to the enticing returns offered by the equity markets and the simplified account opening procedure.

Over the past five years, the total number of Demat (DMAT) accounts in India has witnessed a remarkable upward trajectory. In 2018, there were 359 lakh accounts, which saw a substantial increase to 409 lakh in 2019.

The year 2020 marked an even more significant surge, with the number of accounts reaching 551 lakh, driven by growing interest in stock market investments. In 2021, there was a noteworthy spike to 738 lakh accounts as investors continued to flock to the equity markets.

However, in 2022, there was a noticeable dip to 101 lakh, possibly reflecting a period of consolidation. As of 2023, the trend has resumed its upward trajectory, with the total number of DEMAT accounts standing at 126 lakh, underscoring the enduring popularity of stock market participation in India.

However, most DEMAT account holders invest in the stock market for the long run to get prominent returns. Investors are often advised to go for a long-term approach in the stock market due to the stable return and potential for wealth accumulation over time.

On the other hand, crypto market volatility demands different strategies; it can yield substantial returns and is also prone to sudden downturns.

Understanding the crypto market's volatility and how you can build a fortune overnight

The volatility of the crypto market distinguishes it from other traditional financial markets. Investors have to face different consequences due to the sudden price fluctuations. However, this instability also presents the opportunity for substantial gains.

For those willing to embrace the risks associated with crypto market volatility, there are opportunities to build a fortune relatively quickly. Some investors have achieved overnight success through strategies like day trading, where they capitalize on short-term price movements by buying low and selling high within the same day.

Others have benefited from the initial coin offerings (ICOs) of new cryptocurrencies, participating early in promising projects that later skyrocketed in value.

Legal and regulatory compliance could pose obstacles

It is expected that the user base could rise to 50 million in India by 2027. But it never seems straightforward because of the unclear actions of the Indian government in the crypto industry.

India has already imposed a 30% tax and 1% TDS on crypto gains, which is having a massive impact on crypto users. Crypto adoption is accelerating, and the government can impose strict regulations, which may hinder user growth.

With the quick adoption of cryptocurrencies, risks, and scams are also rising. They are creating a big hassle for users to invest in crypto because there are no laws and regulations in India to address security concerns.

In the future, the growth of the cryptocurrency user base will also depend on how soon the Indian government can enact appropriate laws for user protection.

Conclusion

Apart from all this information, numerous factors are responsible for impacting the number of total crypto users. Recently, India, under the leadership of the G20, submitted an article where some issues like crypto regulations were discussed. Such developments can make India the world leader in the crypto space.

It is expected that the Indian government could implement crypto regulations in the country, which could be a positive sign for the country’s crypto investors.