Why are people afraid to invest in cryptocurrency in India?

In the past few decades, we have seen many changes in technology. Today, the internet is a major part of our lives and we are most of our time attached to the screens of our mobile phones. 

Even in terms of banking, we have seen an upgrade in transaction processes with the introduction of mobile banking facilities. Not only the processes, but the paper money itself is evolving with a new form of digital currency called cryptocurrency. 

Despite the advantages of cryptocurrency, it has not been widely accepted and used in the mainstream as people are afraid to invest in them, especially in India. So why people are afraid to invest in cryptocurrency in India. 

Here are 3 reasons why people in India are afraid to invest in cryptocurrency in India:

1. People Don’t Understand It: 

People generally fear what they don’t understand. Once you understand the subject and learn how it works, you may not fear it anymore. The same goes for cryptocurrency. In simple terms, cryptocurrency is a digital asset protected by encryption that can be used in financial transactions.

2. It Isn’t Legal Tender: 

Cryptocurrency is currently not classified as actual legal tender by the Indian Government which is why people fear investing in cryptocurrency in India. 

Another reason people are afraid to invest in cryptocurrency is that not all countries presently accept it. However, many countries are gradually agreeing to accept it. Even though the government doesn’t back it, we as people can invest in it as it holds value.

3. Fluctuations in Value of Cryptocurrency

Even when some people know what cryptocurrency is, people fear investing in Cryptocurrency, knowing that it may lose its value. There is no denying that we have seen ups and downs in crypto value in the market for investors over the past few years. But even though it has seen sharp increases and dramatic falls, it is here to stay.

The reason it may continue to stay is that the transactions made using cryptocurrency are more secure than the government-backed legal tender. It is impossible to forge, hack, or steal cryptocurrency. Those advantages of digital currency are just why it was created and why it will stick around.

We have definitely seen some great changes in technology in the past two decades, and cryptocurrency exchange is one of them. People should not fear it, but rather learn about it and embrace its use.