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Sunday, November 28, 2021

Crypto over gold on Dhanteras? Why GenZ and millennials are thinking different

The allure of digital assets on Dhanteras is drawing many fence sitters towards crypto. GenZ and Millenials are willing to “Think Different” on Dhanteras. For them, it's crypto over gold.

Written by Mehab Qureshi | Pune |
Updated: November 2, 2021 7:57:15 am
A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. (REUTERS)

“Gold has given around 158 percent returns since 2010. This investment, if compared to Bitcoin, has grossly underperformed— with the cryptocurrency giving an annual return of more than 230 percent,” Ritesh Kalvellu, 25, a crypto investor tells indianexpress.com. And he isn’t the only one who is convinced that crypto shines brighter than gold, which has traditionally enjoyed a strong status in India, especially during Dhanteras and Diwali.

According to a new report by Crypto Research and Intelligence Business (CREBACO), so far around 15 million Indians have embraced crypto and invested close to 10 billion dollars in crypto assets. And this time, the allure of digital assets on Dhanteras is drawing many fence-sitters towards crypto. For many GenZ and millennial investors, it is crypto over gold this Dhanteras.

“Gold is preferred as the safest form of investment due to its tangible form and aesthetic value. While it is right to say that gold could be a safer investment, but cryptocurrency can make you rich,” points out Sathvik Garud, 29, who is picking cryptocurrency during Dhanteras given higher returns.

It is worth noting that crypto exchanges have added to the digital coin craze by tapping Bollywood stars, including Amitabh Bachchan and Ranveer Singh, to lure young investors ahead of Dhanteras.

Garud points out that with big names promoting crypto assets, it helps push crypto into the mainstream and, particularly in Bachchan’s case, adds a measure of respectability.

According to Aliasgar Merchant, who is Developer Relations Engineer at Tendermint and a crypto expert, the increasing popularity of cryptocurrencies and a past record of a lot of them providing sound returns is now tilting the scales of balance in their favour, especially among those below 35 years of age who are more comfortable taking risks.

“What is attracting people towards digital currencies is the fact that one can buy even a fraction of the crypto. Even if someone commits to investing an amount like a thousand rupees every month, they will have a great alternate portfolio over a period of twenty years,” he explained.

But experts also say that for those looking to invest in this festive season, it is best to stick with the known options. According to Hitesh Malviya, founder of itsblockchain.com, Bitcoin and Ethereum are the safer investment options as both of these are the top two listed cryptocurrencies, and have recorded over 40 percent gains since last month.

“These assets have the potential to provide 100 to 200 percent returns to investors in the next few months,” he added.

Meanwhile, Sharat Chandra, an emerging tech evangelist, and a crypto expert recommended that investors should add “Solana and Polygon tokens in their portfolio as these tokens are fuelling the DeFi (decentralised finance), NFT, and play to earn gaming ecosystem.”

“Buying crypto on Diwali might light up your festivities if you get the allocation right. With the approval of Bitcoin ETFs and entry of institutional players, the volatility will be reduced significantly in the coming days, ” he added.

But there are some who caution that perhaps cryptocurrency might not be the best investment for Diwali. After all, investing in gold has always been associated with a sense of security, which is not yet there with cryptocurrency given the digital volatility.

“Dhanteras is celebrated to bring home materials like jewellery and utensils for good luck. In the case of cryptocurrency, you can’t be assured if you’re bringing home good luck or something worthless. Currently, we aren’t even sure of the legal definition of the term cryptocurrency in India and there is no structure to its dealings,” Ashish Katariya, 26, a crypto investor points out. It should be noted that dealing in crypto isn’t deemed illegal yet.

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