Crypto Challenges Gold Dominance in India as Adoption Reaches Near-Record Levels
India's cryptocurrency adoption has reached nearly 100 million users in just over a decade, posing a challenge to gold's long-standing dominance. According to CoinDCX co-founder Sumit Gupta, approximately 700 million Indian adults (75%) own gold, while around 97.5 million (10.2%) hold crypto.
The shift is attributed to the widespread availability of smartphones, low-cost mobile data, and local crypto exchange applications, as well as the easing of regulatory restrictions. The RBI's banking restrictions on crypto services were lifted by the Supreme Court in 2020.
While gold remains a significant cultural and perceived safe-haven asset, investing in crypto can offer less friction for digitally native younger investors. However, the value of Indian households' gold holdings is estimated to be around $3.9 trillion, roughly four times household equity holdings and twice bank deposits, highlighting the disparity between the two assets.
Crypto adoption could reshape India's investment landscape, but it's unlikely to displace gold soon. For Indian investors, the choice between gold and crypto depends on risk tolerance, investment goals, time horizon, and tax treatment.