The Emergence of Cryptocurrency in India and Its Implications on Investments

Abstract

Investing in the unregulated cryptocurrencies has showed a rising tendency since 2020, despite uncertainty surrounding its future in India. There is no ban on the use of cryptocurrencies in India, nor is there any regulation governing their actual use. This uncertainty is disturbing Indian startups developing blockchain-based products. But this hasn't altered investors' positions in investing in cryptocurrencies; they continue to be positive. For longer-term investments, investors have historically employed fundamental analysis. By analyzing the underlying company's operations and the state of its industry or the overall economy, fundamental analysis seeks to find stocks with high growth potential at fair prices. The issue with conducting a fundamental analysis of cryptocurrencies is that they cannot be evaluated using the same criteria as conventional businesses. Therefore, the authors must focus on several frameworks. Finding good metrics is the first step in that approach. This chapter examines the emergence of cryptocurrency in India and its implications on investments.