Posted November 04, 2019 07:50:33India’s new cryptocurrency market is set to reach $500 million by the end of 2019, according to the latest research by the New Delhi-based market research company Mintel.
The company, which tracks cryptocurrency markets worldwide, says the new market was created to fill the gap left by the closure of Indian exchange Exmo last year.
The report said that by 2021, India will become the third largest market for cryptocurrencies in the world, after China and South Korea.
“We believe that this will lead to significant growth in the Indian market, which is currently dominated by small players and institutional investors,” Mintel chief economist Ashish Kumar told CNBC.
Mintel says India has the world’s largest cryptocurrency market with a market cap of $8.4 billion.
The country’s cryptocurrency market reached a peak of $2.7 billion in 2017.
The market is now expected to reach more than $2 billion by the year 2020.
The company says that it will likely take about three years to grow to $1.2 billion.
The New Delhi based market research firm, Mintel, says India’s bitcoin market reached $5.8 billion in 2016 and the Indian cryptocurrency market will reach $5 billion by 2020.
The startup said that India has a relatively small population and a lack of knowledge about cryptocurrencies.
However, the country’s biggest cryptocurrency, bitcoin, has become a popular choice for young people and people in developing countries who have limited internet access.
According to Mintel’s report, bitcoin is the most traded cryptocurrency in India, followed by ethereum, litecoin, and dogecoin.
“It is very easy to move crypto between exchanges,” said Ashish.
“I believe that by 2020, India’s crypto market will surpass China and Korea.”
The startup, which focuses on the emerging technology, said that the country will have more than 2,000 cryptocurrencies in circulation by 2020-2021.
Mortgage brokers and homebuyers are likely to be among the first to start trading bitcoin in India as they are among the most likely to get loans, said Ashif Nandy, CEO of the startup.