India is lagging behind in the Bitcoin race. With 19 million of the total 21 million Bitcoins already mined, the nation’s prospects are dim. The United States leads with approximately 198,109 BTC worth around $20.67 billion. Bhutan is not far behind, holding 11,055 BTC valued at $1.15 billion. In stark contrast, Jetking, India’s only public Bitcoin holder, boasts a mere 12 BTC worth $1.2 million. With only 2 million BTC left, Indian entities face a challenging road ahead.
Bitcoin trading numbers reveal the disparity. As of January 19, Bitcoin’s trading volume in Indian Rupees (INR) was around ₹8.57 crore, while in USDT, it hit approximately $2 billion. These figures raise questions about India’s position in the global Bitcoin market. Sidharth Sogani Jain, CEO of Blue Aster Capital, emphasized that getting accurate data on India’s Bitcoin holdings is tough. Most data is based on assumptions, and exchanges often hold the Bitcoin, not the individual investors.
“India does not rank among the nations with significant Bitcoin ownership due to a lack of regulation,” Jain stated. Sumit Gupta, Co-founder of CoinDCX, echoed this sentiment. He pointed out that countries like Bhutan, Abu Dhabi, and Japan have leveraged their unique advantages to build substantial Bitcoin reserves. Bhutan utilizes its abundant hydropower, while Abu Dhabi benefits from low energy costs.
Despite the challenges, India boasts one of the highest retail crypto adoption rates globally. However, the absence of clear regulations stifles further investment. Gupta argued that a robust regulatory framework could unlock significant institutional participation. This would position India to become a Web3 superpower, aligning with global trends in Bitcoin reserves.
Experts like Rahul Pagidipati, CEO of ZebPay, warn of a potential Bitcoin gap. He previously estimated that Indians own less than one percent of the world’s Bitcoins. As countries move towards recognizing Bitcoin as a reserve asset, India risks falling behind.
Pranav Agarwal, Head of Investors at Foundership, believes it’s not too late for India. He advocates for the government to purchase Bitcoin and create regulations that allow individuals and companies to invest. He suggests viewing Bitcoin as a strategic national reserve.
However, Bitcoin commerce remains a distant dream. Agarwal noted that current capital controls hinder free movement of capital across borders. Ashish Singhal, Co-founder of Coinswitch, believes that cryptocurrency is mainly an investment asset in India rather than a medium for commerce.
In summary, while India may have missed some opportunities in the Bitcoin arena, it still has a chance to catch up. With the right regulations, the country could harness the potential of this digital currency and secure its place in the global market.
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