- About 36% of India’s rich individuals are pessimistic about the Indian economy.
- As per the report, almost half of the respondents aren’t knowledgable about cryptocurrency.
India’s wealthiest investors are seeking to boost their allocation to cryptocurrencies, as the nation is under a period of slow economic growth. Quartz – citing data from the Hurun Report – reported that around 36% of India’s high-net-worth individuals are pessimistic about the Indian economy over the next three years. This has compelled the investors to invest in safer and alternative assets such as real estate.
When it comes to future investment, a similar percentage of people have avoided taking risks altogether. However, 9% of wealthy Indians said that they would increase their allocation to cryptocurrencies over the next three years despite the desire for risk-off assets.
Apparently, nearly half of the respondents said they don’t have much idea about virtual currency. Amid those who knew about it, the largest group showed a preference to invest in Bitcoin (29.15%); the next 8.74% preferred Ethereum and 6.80% would like to invest in Ripple.
The Block’s Ryan Todd explained that the volatility of cryptocurrencies, including bitcoin, could prevent it from becoming a so-called safe-haven asset class. Todd wrote:
“Looking at average 30-day rolling volatility, bitcoin has seen an average 12.4% annualized 30-day volatility over the last five years, and currently sits just under 20%. Compare that to treasuries at ~.50%, and even the S&P 500 and gold at 2.5%, and you can see why there was a collective push-back on the notion that bitcoin offers ‘safety’.”
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