1 / 10Below are some facts and insights gleaned from Shetty’s tweets as part of his #IndiaWantsCrypto campaign.
2 / 10Bitcoin’s stupendous rise from a few cents a little over a decade ago to about $37,000 now has often left many experts in disbelief. Shetty’s argument over why Bitcoin has risen so far is simple: “It is more accessible than any other asset class (only mobile + Internet needed); 2. It is digital; 3. It has no geographic boundaries; 4. No country or person runs it; 5. Everyone talks about it”
3 / 10Still, while the concept of Bitcoin looks promising in theory, investors have often wondered how to value Bitcoin, given that it does not have cash flows like stocks or bonds. According to Shetty, Bitcoin derives its value from its user network of over 100 million. “The Internet has 4.73 billion people. Bitcoin is accessible to every one of them,” he tweeted. “Crypto valuations of today are based on the fact that crypto has only 3 percent of the Internet population,” he wrote in another tweet. There’s a massive number of people yet to enter.”
4 / 10While prices of cryptocurrencies such as Bitcoin have grown rapidly over the past decade, they are also known to witness sharp downswings from time to time. Shetty exhorts investors to look past the price swings and look at the overall interest in cryptocurrencies. “The market cap growth of any cryptocurrency is determined by four major factors. Number of participants, number of projects, capital investment and positive interest by the nation,” he said. “There has been a rise in all four factors in the past year.” (Image: CNBC-TV18, YouTube)
5 / 10Shetty is extremely optimistic about the promise of non-fungible tokens (NFTs), saying that it would help cryptocurrency technology adoption go from 120 million currently to 1 billion. “Millions of artists will bring in hundreds of millions of people into crypto. NFTs will go from ‘good to have to ‘must have’,” he tweeted. (Image: Reuters)
6 / 10Some cryptocurrency investors believe that a central bank digital currency (CBDC) would spell trouble for decentralized cryptocurrencies such as Bitcoin but Shetty believes the opposite. “CBDC for India would help onboard millions of Indians into the digital economy. RBI should definitely proceed. The misconception is that CBDC would mean the death of another crypto. That’s the same as saying government websites would mean the death of other websites,” Shetty said. (Image: Shutterstock)
7 / 10Shetty has often exhorted the government to bring about regulations for cryptocurrencies through the campaign. He believes that regulation would help kickstart growth. “Regulation is going to be the next big buzzword in crypto. Countries around the world will start regulating. The first wave of regulations will be on centralised entities. Overall, regulations bring clarity and that helps grow the industry faster,” Shetty tweeted. In another tweet, Shetty made an interesting point, saying regulations always come after innovation. “If entrepreneurs in India waited for regulations before starting Internet companies, then we would not have had any Indian startups. Regulation needs an ecosystem to regulate. Indian entrepreneurs need to startup in crypto to help build the ecosystem.” (Image: Company website)
8 / 10The Ministry of Corporate Affairs’ decision to ask companies to disclose their cryptocurrency earnings is a positive step, according to Shetty. “This increases confidence in people & corporates that are dealing with Crypto in India,” he tweeted, adding in another tweet: “Corporates around the world are gaining crypto exposure. This is helpful: As a hedge for their investment; To build the skill set in this new tech; To remain competitive”. (Image: Reuters)
9 / 10Shetty also highlighted that the increased adoption of Bitcoin as a payment mechanism by mainstream companies such as Visa is a great development for Bitcoin and that other banks should consider the same. “This was bound to happen considering the fact that it makes payment settlement instant,” he wrote. In another tweet, he added: “Banks in India are still undecided on what direction to take. The sooner they integrate crypto technology, the faster they’ll be able to compete”.
10 / 10Shetty outlined another interesting use case for cryptocurrencies – for startups. “Traditional VC firms take weeks & months to close a deal & send capital for a startup they want to invest in,” he wrote. “ICO/IDO has made this entire process open and faster. Crypto entrepreneurs can now raise money from anyone, anywhere and in record time.”
