The year 2019, i.e. pre-covid era, was a tough time for the industry, especially for the Indian market. The year started with the ripple effect of the draft seeking to ban cryptocurrency and related activities. The unwillingness of central banks to provide financial services to Virtual currency platforms impacted the access to crypto for investors and tested the faith of crypto-preneurs and investors. But these were the times when the industry reach & its foundation was gradually getting stronger. The year 2019 triggered debates & discussions around the crypto industry and pushed it further to the global agenda.
Moving on to the onset of pandemic, the year 2020 crippled most economies and the worst impact was observed in developing countries. Due to pandemic-driven circumstances, online payment grew unparalleled and the demand for cryptos boomed. The concept of CBDC made it to the agendas of central banks worldwide. The Bitcoin price jumped over 300% from jan to dec 2020. The year 2020 brought the crypto industry’s charm back, especially for the Indian market. On 4th March 2020 Supreme court of India struck down the blanket ban on crypto imposed by RBI and unleashed the potential of the crypto industry in India.
The year 2021 has contributed significantly to the growth of crypto industry. The global crypto adoption rate jumped over 880% (as per the Global crypto adoption Index 2021). El Salvador became the first country in the world to accept Bitcoin as legal tender. India also gained traction globally by having more than 2 crore crypto investors & securing 2nd rank in the GCAI (Global crypto adoption index) 2021. The innovative use cases of crypto and technologies that complement cryptocurrencies like Metaverse, Web 3.0, NFTs etc., opened a new dimension to explore & innovate. The industry growth in 2021 has gained the trust of institutional investors, and the inflow of investment reached 9.3$ billion, viz. 36% higher than the previous year.
Post covid, the crypto industry evolved differently than in previous years. Most of the govts worldwide are working out to understand crypto & roll out the regulatory frameworks. Indian govt brought crypto under the tax ambit by categorising them as virtual digital assets. Steadily, we are progressing towards the greater acceptance & adoption of cryptocurrencies.
The market is gradually moving towards maturity. After the Terra debacle wiped off 840$ million from the market, the investors became more cautious about crypto investments. More people are inclined to read & understand the fundamentals of crypto instead of speculative trading. For the first time in the history of the World Economic Forum, crypto firms occupied the main streets in Davos, and the demand for a fair regulatory framework for the crypto industry was discussed among the WEF 2022 main agendas. The Crypto industry is no more an outsider, it has already started to become mainstream.