A STUDY ON INVESTORS PERCEPTION TOWARDS

CRYPTOCURRENCY

Dissertation submitted to the Mahatma Gandhi University in partial fulfillment

of the requirement for the Award of the Degree of

BACHELOR OF COMMERCE
BY

ASWIN SHAJI (REG.NO 210021060746)

JUAN KOSHY (REG.NO 210021060756)
KEVIN CHERIAN (REG.NO 210021060758)
PRITHVIRAJ D (REG.NO 210021060764)
REUBEN VARGHESE (REG.NO 210021060765)

Under the supervision and guidance of

MRS. PRIYA.S
M.Com, MBA, B.Ed.

POST GRADUATION DEPARTMENT OF COMMERCE

SELF- FINANCING

BASELIUS COLLEGE KOTTAYAM

MARCH 2024
 Website: www baseliuscollege.ac.in
Email: [email protected]

BASELIUS COLLEGE, KOTTAYAM

(NAAC accredited @ A++grade with CGPA of 3.51)

Post Graduate Department of Commerce

Self-Financing

CERTIFICATE

This is to certify that the dissertation entitled " A Study on Investors Perception
Towards Cryptocurrency " is a bonafide record of the project work carried out by
Aswin Shaji (REG.NO 210021060746), Juan Koshy (REG.NO 210021060756),
Kevin Cherian (REG.NO210021060758), Prithviraj D (REG.NO210021060764),
Reuben Varghese (REG.NO210021060765) final year B.com students of this
department under my supervision and guidance during 2021-2024.The project
report represent the work of the candidates and is here by approved for
submission

Head of the Department Teacher-in-charge

Mrs. Priya. S Mrs. Priya. S
M.Com, MBA, B.Ed M.Com, MBA, B.Ed

EXTERNAL EXAMINER:

Place: Kottayam
Date:
 DECLARATION

We, Aswin Shaji , Juan Koshy ,Kevin Cherian

Prithviraj D , Reuben Varghese ,hereby declare that the project work entitled
" A Study on Investors Perception Towards Cryptocurrency " is a bonafide piece of work
carried out under the supervision of Mrs. Priya.S , Assistant Professor,
Post Graduate Department of Commerce (self-financing), Baselius College,
Kottayam in the partial fulfillment of the requirements for the award of Bachelor
of Commerce degree of Mahatma Gandhi university. We also declare that this
report has not been submitted by us anywhere, fully or partially for the award of
any other degree/diploma and this represents our independent work.

ASWIN SHAJI
Place:Kottayam
Date: JUAN KOSHY
KEVIN CHERIAN
PRITHVIRAJ D
REUBEN VARGHESE
 ACKNOWLEDGEMENT

We have great pleasure in expressing a word of thanks to all who rendered their
help and guidance to make this project a success.

First of all we thank god for giving me all grace and strength throughout this work

We thank PROF.DR.BIJU THOMAS,Principal, Baselius College, kottayam for his

valuable support and encouragement.

We are grateful to Mrs.Priya.S HOD, Post Graduate Department of

Commerce (self-financing) for her support and guidance

We are happy to express our profound sense of gratitude to Mrs Priya .S

Assistant Professor ,Post Graduate Department of Commerce (Self-Financing), Baselius
College, Kottayam for guiding us through this endeavor and giving valuable advice
and constant encouragement throughout this study.

We wish to express our heartfelt gratitude toward our parents, brothers and sister
for their valuable suggestions, opinion and the financial support, which enabled us
to complete the work. We thank all our friends who have directly and indirectly
helped us in completing this work.

ASWIN SHAJI
JUAN KOSHY
KEVIN CHERIAN
PRITHVIRAJ D
REUBEN VARGHESE
 CONTENTS

Chapter Title Page No.

1 INTRODUCTION 1

2 REVIEW OF LITERATURE 6

3 THEORETICAL FRAMEWORK 9

4 DATA ANALYSIS AND INTERPRETATION 19

5 FINDINGS, SUGGESTIONS & CONCLUSION 41

BIBLIOGRAPHY

APPENDIX
 LIST OF TABLES

TABLE PAGE
NO. TITLE NO.

4.1 FAMILIARITY OF CRYPTOCURRENCY 20

4.2 INVESTORS IN CRYPTO CURRENCY 21

4.3 COMMON CRYPTO CURRENCY 22

4.4 CRYPTOCURRENCY 'S ROLE IN THE ECONOMY 23

4.5 FACTORS AFFECTING INVESTOR'S DECISION 24

4.6 AWARENESS ABOUT GOVERNMENT RULES 25

4.7 CHALLENGES FACED BY INVESTORS 26

4.8 RISKS FACED DURING INVESTING IN CRYPTOCURRENCY 27

4.9 BENEFICIALITY OF CRYPTO CURRENCY IN ECONOMY 28

CONTRIBUTION OF CRYPTO CURRENCY TO FOSTERING FINANCIAL

4.10 29
INCLUSIVENESS

4.11 SOURCES OF INFORMATION ABOUT CRYPTO CURRENCY 30

4.12 PRIMARY REASON FOR BUYING CRYPTO ASSETS 31

4.13 RISKS PERCEIVE ASSOCIATED WITH CRYPTO CURRENCY INVESTMENTS 32

CONFIDENTS ABOUT INDIAN GOVERNMENTS APPROACH TO HANDLING

4.14 33
CRYPTO CURRENCY USAGES

4.15 GOVERNMENT SHOULD REGULATE CRYPTOCURRENCIES 34

4.16 INTERESTS IN EDUCATIONAL PROGRAMS ABOUT CRYPTO CURRENCY 35

RECOMMENDATIONS FOR PROSPECTIVE INVESTMENTS IN

4.17 36
CRYPTOCURRENCY

4.18 HOW LIKELY DO YOU INVEST IN CRYPTO CURRENCIES 37

4.19 FACTORS DISCOURAGE FROM INVESTING IN THE CRYPTO CURRENCY 38

MAIN CONCERN OR FEAR WHEN IT COMES TO INVESTING IN THE CRYPTO

4.20 39
CURRENCY

4.21 OVERALL SATISFACTION TOWARDS CRYPTO CURRENCY 40

 LIST OF FIGURES

TABLE PAGE
NO. TITLE NO.

4.1 FAMILIARITY OF CRYPTOCURRENCY 20

4.2 INVESTORS IN CRYPTO CURRENCY 21

4.3 COMMON CRYPTO CURRENCY 22

4.4 CRYPTOCURRENCY 'S ROLE IN THE ECONOMY 23

4.5 FACTORS AFFECTING INVESTOR'S DECISION 24

4.6 AWARENESS ABOUT GOVERNMENT RULES 25

4.7 CHALLENGES FACED BY INVESTORS 26

4.8 RISKS FACED DURING INVESTING IN CRYPTOCURRENCY 27

4.9 BENEFICIALITY OF CRYPTO CURRENCY IN ECONOMY 28

CONTRIBUTION OF CRYPTO CURRENCY TO FOSTERING FINANCIAL

4.10 29
INCLUSIVENESS

4.11 SOURCES OF INFORMATION ABOUT CRYPTO CURRENCY 30

4.12 PRIMARY REASON FOR BUYING CRYPTO ASSETS 31

4.13 RISKS PERCEIVE ASSOCIATED WITH CRYPTO CURRENCY INVESTMENTS 32

CONFIDENTS ABOUT INDIAN GOVERNMENTS APPROACH TO HANDLING

4.14 33
CRYPTO CURRENCY USAGES

4.15 GOVERNMENT SHOULD REGULATE CRYPTOCURRENCIES 34

4.16 INTERESTS IN EDUCATIONAL PROGRAMS ABOUT CRYPTO CURRENCY 35

RECOMMENDATIONS FOR PROSPECTIVE INVESTMENTS IN

4.17 36
CRYPTOCURRENCY

4.18 HOW LIKELY DO YOU INVEST IN CRYPTO CURRENCIES 37

4.19 FACTORS DISCOURAGE FROM INVESTING IN THE CRYPTO CURRENCY 38

MAIN CONCERN OR FEAR WHEN IT COMES TO INVESTING IN THE CRYPTO

4.20 39
CURRENCY

4.21 OVERALL SATISFACTION TOWARDS CRYPTO CURRENCY 40

 CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION

In the ever-evolving landscape of finance, cryptocurrencies have emerged as a groundbreaking

phenomenon, revolutionizing traditional notions of currency and transactions. The term
"cryptocurrency" is a portmanteau of "crypto," derived from the use of cryptographic techniques,
and "currency," signifying its role as a medium of exchange. Unlike conventional currencies issued
and regulated by governments, cryptocurrencies operate on decentralized networks based on
blockchain technology.

Cryptocurrency is a form of digital or virtual currency that utilizes cryptography for security,
making it resistant to fraud and counterfeiting. One of its defining features is decentralization,
meaning it operates on a peer-to-peer network without the need for a central authority like a
government or financial institution. This decentralized nature is enabled by blockchain
technology, a distributed ledger that records all transactions across a network of computers.

At the core of cryptocurrency functionality is the blockchain, a chain of blocks containing

transaction data. Each block is linked to the previous one, creating a secure and transparent
record of all transactions. When a transaction occurs, it is verified by a network of computers
(nodes) through a consensus mechanism, such as proof-of-work or proof-of-stake. Once verified,
the transaction is added to the blockchain, and the involved parties receive updated digital wallets
reflecting the transfer of funds.

1.2 STATEMENT OF THE PROBLEM

Cryptocurrency faces challenges in India. One big issue is the unclear rules and laws about it,
making people unsure about using it. Also, there are worries about the safety of digital money
because of cyber threats and hacking. This lack of strong security makes people uneasy about
using cryptocurrencies. On top of that, many people are skeptical and unsure about them due to
misinformation and past scams. All these problems make it hard for cryptocurrencies to be widely
accepted in India. To fix this, clear rules, better security, and efforts to educate the public are
needed for people to trust and use cryptocurrencies more comfortably.

2
1.3 SIGNIFICANCE OF THE STUDY

This study is aimed at providing a comprehensive understanding of the profound impact of

cryptocurrency on investors' decision-making processes and the broader economy. Recognizing
the vital role cryptocurrency plays in contemporary financial investments, it facilitates the
generation of digital capital and significantly influences the growth of the economy. In addressing
the current requirements of the digital era, the study aims to analyze how cryptocurrency shapes
investor decisions, highlighting the relevance of digital assets in today's investment landscape.
Moreover, it seeks to assess the strengths and weaknesses of cryptocurrency within the context of
India, offering insights into the unique challenges and opportunities within this market. The study
also endeavors to provide an up-to-date assessment of the current position of cryptocurrency and
its investors, while shedding light on the economic state following its introduction. Ultimately,
this research will contribute to a nuanced understanding of the transformative changes
cryptocurrency has brought to both investors and the economy

1.4 OBJECTIVES OF THE STUDY

To study the factors considered by the Investors.

To analyse the challenges faced by Investors

To measure the effectiveness of education on Cryptocurrencies

• To study the overall satisfaction towards Cryptocurrency.

1.5 RESEARCH METHODOLOGY

This section outlines the approach taken to study cryptocurrency in the Indian market.
A mixed-methods strategy is employed, incorporating surveys and interviews to
capture diverse perspectives. Surveys will gauge public sentiment, while interviews
with experts and stakeholders will provide qualitative insights. Data analysis, utilizing
advanced tools, will examine transactional patterns and regulatory developments. The
study spans a defined period to ensure relevance, and the sample size is carefully
chosen for representation. Acknowledging limitations, including data availability and
potential biases, this section emphasizes a systematic and comprehensive methodology
for a nuanced understanding of cryptocurrency dynamics in India.

3
1.5.1 DATA COLLECTION

PRIMARY DATA

Primary data by contrast, are collected by the investigator conducting the research.
Data collected from selected samples through questionnaires . Convenient sampling
method is used for this study. The questionnaires were given to 50 samples. The
questionnaire includes 21 questions.

SECONDARY DATA

Data collected from websites journals,magazines, refers to data that was

collectedsomeone other than the user .common sources of secondary data for social
science includes censuses, information collected by government departments,
organizational records and data that was originally collected for the other research
purpose.

1.5.2 SAMPLE SIZE

Sample size is the selected representative of the population sample size selected for this
study is 50

1.5.3 TOOLS FOR DATA COLLECTION

The various tools used for collecting the data are as follows:

Primary data was collected through questionnaire

Analysis of data was done by using percentage method

Bar diagrams

Pie diagram

4
1.6 LIMITATIONS OF THE STUDY

The study has the limitation of time, place and resources.

Statistical significance of various parameters have not been examined.

Lack of co-operation from the respondents.

Inherent limitations of sampling will also affect the study.

1.7 CHAPTERISATION

Chapter 1 Introduction

Chapter 2 Review of Literature

Chapter 3 Theoretical Framework

Chapter 4 Data Analysis and Interpretation

Chapter 5 Findings, Suggestions and Conclusion.

5
 CHAPTER 2
REVIEW OF LITERATURE
A literature review discusses published information in a particular subject area, and
sometimes information in a particular subject area within a certain time period. A
literature review can be just a simple summary of the source, but is usually as an
organizational pattern and combines both summary and synthesis. It helps in
clarifying and defining the problem, stating the objectives, formulating hypotheses,
selecting an appropriate design and methodology of research as well as interpreting the
result in the light of research work already undertaken in the previous studies. In this
chapter an endeavor has been made to provide and present an overview of various
aspects of this study through the review of existing literature. The sources referred to
include journals, books, working papers, reports related to human resources etc.

Ruffer Investment Company (2020): Ruffer, a UK-based investment firm, allocated a

portion of its portfolio to Bitcoin in 2020, considering it as a hedge against the
devaluation of fiat currencies. Their move highlighted the increasing institutional
interest in Bitcoin as a store of value.

Ray Dalio (2021): Bridgewater Associates' founder, Ray Dalio, expressed concerns
about governments potentially restricting or even banning cryptocurrencies in 2021.
He emphasized the importance of diversification in investments.

CitiGroup (2021): Citigroup released reports suggesting that Bitcoin could become the
preferred currency for international trade in 2021, acknowledging its potential role in
the global financial system.

Morgan Stanley (2021): Morgan Stanley began offering Bitcoin funds to its wealthy
clients in 2021, indicating a growing acceptance and interest in cryptocurrencies.

Fidelity Investments (2021): Fidelity has been actively involved in the cryptocurrency
space, establishing a dedicated digital asset division in 2021. They expressed optimism
about the institutional adoption of Bitcoin and other digital assets.

Paul Tudor Jones (2021): In 2021, the renowned hedge fund manager Paul Tudor Jones
revealed that he allocated a portion of his portfolio to Bitcoin, considering it a hedge
against inflation. His positive stance on Bitcoin continued into that year.

Square Inc. and Tesla (2021): Square, led by Jack Dorsey, and Tesla, led by Elon
Musk, both invested significantly in Bitcoin in 2021. Elon Musk's statements on
Bitcoin have been particularly influential, causing both positive and negative market
reactions.

PayPal (2021): PayPal expanded its cryptocurrency services in 2021, allowing users to
buy, sell, and hold cryptocurrencies directly within their PayPal accounts.

7
Grayscale Investments (2021): Grayscale Investments, one of the largest cryptocurrency
asset managers, saw significant inflows into its cryptocurrency funds in 2021,
indicating growing institutional interest in digital assets.

Mark Cuban (2021): Entrepreneur and investor Mark Cuban expressed enthusiasm for
decentralized finance (DeFi) projects in 2021, highlighting the potential for blockchain
technology to disrupt traditional financial systems.

BNY Mellon (2021): BNY Mellon announced plans to offer cryptocurrency custody
services to its clients in 2021, signaling institutional acceptance of digital assets.

Square Inc. (2021): Square Inc., through its Cash App, allowed users to buy and sell
Bitcoin in 2021, contributing to the mainstream adoption of cryptocurrencies as a
payment method.

BlackRock (2022): BlackRock's CEO, Larry Fink, mentioned a potential "evolution" in

Bitcoin during 2022, signaling a more positive stance toward cryptocurrencies.

Visa (2022): Visa announced plans to enable cryptocurrency purchases and payments
with its network in 2022, recognizing the growing demand for digital assets.

MicroStrategy (2021): MicroStrategy, led by CEO Michael Saylor, continued to

accumulate Bitcoin as a treasury reserve asset throughout 2021, highlighting their
long-term bullish stance on cryptocurrency.

Square Inc. (2022): Square Inc., led by CEO Jack Dorsey, announced plans to create a
decentralized finance (DeFi) platform based on Bitcoin in 2022, aiming to increase
access to financial services globally.

ARK Invest (2022): ARK Invest, led by CEO Cathie Wood, expressed optimism about
the long-term potential of Bitcoin and other cryptocurrencies, projecting continued
adoption and price appreciation.

Coinbase (2022): Coinbase went public through a direct listing in 2022, marking a
significant milestone for the cryptocurrency industry and validating its legitimacy as
an asset class.

Goldman Sachs (2023): Goldman Sachs expressed caution about Bitcoin as an

investment in 2023, citing its volatility. However, they did acknowledge the growing
interest in cryptocurrencies among institutional investors.

JPMorgan Chase (2023): JPMorgan acknowledged growing institutional interest in

Bitcoin in 2023, suggesting it could compete with gold as an alternative currency.

8
 CHAPTER 3
THEORETICAL FRAMEWORK
3.1 Influence of Cryptocurrency on the Indian Market:
A Comprehensive Exploration of Impact and Implications

Increased Interest and Adoption:

Cryptocurrencies, particularly Bitcoin, gained significant attention in India, with an increasing

number of individuals showing interest in trading and investing in digital assets. The
decentralized nature and potential for high returns attracted a diverse range of investors.

Trading Platforms and Exchanges:

Several cryptocurrency exchanges and trading platforms emerged in India, providing users with
a platform to buy, sell, and trade various cryptocurrencies. These platforms facilitated the
exchange of digital assets, contributing to the growth of the cryptocurrency market in the
country.

Blockchain Technology Exploration:

Beyond cryptocurrency trading, there was a growing interest in blockchain technology – the
underlying technology behind cryptocurrencies. Companies and developers explored
blockchain for applications in various industries, including finance, supply chain, and
healthcare.

Regulatory Developments:

The regulatory environment in India regarding cryptocurrencies has been somewhat uncertain.
The Reserve Bank of India (RBI) had imposed banking restrictions on cryptocurrency
transactions, but these were lifted by the Supreme Court of India in 2020. Subsequent
discussions and proposals for cryptocurrency regulations have been ongoing, shaping the legal
framework for the industry.

Startups and Investments:

The cryptocurrency and blockchain space in India witnessed the emergence of startups focusing
on various aspects of the technology. Additionally, traditional financial institutions and
venture capital firms began to explore investments in cryptocurrency-related projects and
companies.

10
Volatility and Risks:
The highly volatile nature of cryptocurrency prices presented both opportunities and risks
for investors. While some individuals profited from the price fluctuations, others faced
significant losses. This volatility prompted warnings from regulatory authorities and
financial experts.

Public Awareness and Education:

Cryptocurrency's influence extended to increasing public awareness about digital assets and
blockchain technology. Educational initiatives, seminars, and discussions helped inform the
public about the potential benefits and risks associated with investing in cryptocurrencies.

3.2 The advantages of cryptocurrency in the Indian market include:

Financial Inclusion:
Cryptocurrencies provide an opportunity for financial inclusion, allowing individuals
without access to traditional banking services to participate in the financial ecosystem.

Lower Transaction Costs:

Cryptocurrency transactions often have lower fees compared to traditional banking and
financial services, making them cost-effective, especially for cross-border transactions.

Efficiency and Speed:

Cryptocurrency transactions can be processed quickly, especially when compared to
traditional banking systems, which may involve intermediaries and take longer to settle.

Access to Global Markets:

Cryptocurrencies enable Indian investors to access global financial markets and diversify
their investment portfolios beyond domestic assets.

Decentralization and Security:

The decentralized nature of cryptocurrencies provides increased security, as the blockchain
technology underlying them ensures transparency, immutability, and resistance to fraud.

11
Volatility and Risks:
The highly volatile nature of cryptocurrency prices presents both opportunities and risks for
investors. While some individuals profit from price fluctuations, others face significant
losses. This volatility has prompted warnings from regulatory authorities and financial
experts.

Public Awareness and Education:

Cryptocurrency's influence extends to increasing public awareness about digital assets and
blockchain technology. Educational initiatives, seminars, and discussions help inform the
public about the potential benefits and risks associated with investing in cryptocurrencies.

3.3 The disadvantages of cryptocurrency in the Indian market include:

Regulatory Turbulence:
Cryptocurrency regulations in India are in a perpetual state of flux, with frequent amendments
and conflicting interpretations creating an environment of uncertainty for investors and
businesses alike.

Legal Ambiguity:
India's legal stance on cryptocurrency remains ambiguous, lacking a clear and comprehensive
framework. This ambiguity complicates matters related to taxation, investor protection, and
compliance, leaving stakeholders navigating through a labyrinth of legal intricacies.

Extreme Price Volatility:

Cryptocurrency prices exhibit extreme volatility, akin to riding a rollercoaster without safety
harnesses. Sharp fluctuations in value pose significant risks to investors, introducing elements
of unpredictability and speculation into the market.

Security Vulnerabilities:
Cryptocurrency transactions are susceptible to security breaches and cyberattacks, exposing
investors and businesses to the risk of hacking, fraud, and theft. Weaknesses in online wallets,
exchanges, and smart contracts serve as entry points for malicious actors.

12
Underworld Exploitation:
The anonymity afforded by cryptocurrencies has inadvertently fostered a breeding ground
for illicit activities, including money laundering, terrorism financing, and illicit trade.
Such exploitation undermines the integrity of the financial system and poses threats to
national security.

Skepticism Among Businesses:

Businesses in India approach cryptocurrencies with skepticism, wary of their legality and
reliability as a medium of exchange. Many remain hesitant to adopt digital currencies due
to concerns over regulatory compliance and market volatility.

Manipulative Market Forces:

Cryptocurrency markets are susceptible to manipulation by large players and organized
groups, resulting in artificial price fluctuations and market distortions. Retail investors
often find themselves at the mercy of manipulative forces, exacerbating market instability.

Environmental Concerns:
The energy-intensive nature of cryptocurrency mining raises significant environmental
concerns, contributing to carbon emissions and energy consumption on a global scale.
The ecological footprint of mining operations poses challenges to sustainability and
environmental conservation efforts.

Technological Hurdles:
Cryptocurrency adoption faces formidable technological hurdles, including user interface
complexities, scalability limitations, and infrastructural requirements. These hurdles
impede widespread adoption and usability, particularly in less developed regions.

Consumer Vulnerability:
Cryptocurrency transactions lack the consumer protections afforded by traditional
financial systems, leaving individuals vulnerable to fraud, disputes, and irreversible
transactions. The absence of regulatory oversight amplifies risks associated with digital
asset ownership.

Digital Divide Exacerbation:

Cryptocurrency transactions are contingent upon internet connectivity, exacerbating
existing disparities in access and digital literacy. Rural communities and marginalized
populations face barriers to participation, widening the digital divide and perpetuating
socioeconomic inequalities.

13
3.4 CRYPTOCURRENCY AND ITS IMPACT ON THE INDIAN
ECONOMY

The impact is of cryptocurrencies on the Indian economy is clearly depicted as the

prices of cryptocurrency market are now falling down. Indian government has made it
clear with their stand of not providing a legal status for cryptocurrency in India. The
reason for this kind of a decision from government hails from first, the challenge of
monitoring the decentralized transactions in cryptocurrencies are difficult to trace
which could be advantageous for the hackers, criminals and also for terrorist activities.
The second reason being cryptocurrency market could be a leading competitor for the
banking service industry.Cryptocurrency like Bitcoin has become popular in India like
other nations as the volume of Indian rupee being traded in cryptocurrency have been
at the highest post demonetisation. Researches shows that the volume generated by the
rupee dominated cryptocurrency is the third largest volume traded after American
dollar and yen. The demonetization policy of 2016 may have encouraged the
implementation of cryptocurrencies amongst a substantial share of the population but
realities rapidly began to come out that have subdued the growth of the market in the
country. In spite of its enormous population, India only contributes two percent of the
whole global cryptocurrency market capitalization. Cryptocurrencies in Indian context
portrays few Present and future of Cryptocurrency in India .Presently there is no
regulation in India for cryptocurrencies. The absence of a regulation certain bitcoin
exchanges such as Unocoin, Zebpay, etc have initiated their operation in trading or
cryptocurrencies with Know Your Customer (KYC) norms. The Reserve Bank of India
initially was against the trading of cryptocurrencies in India, however in the year 2014
RBI showed its interest in block chain technology used by cryptocurrency to reduce the
physical paper currency circulation. In 2015, a financial stability report was published
by RBI to identify the importance of private blockchain. In 2016, ICICI bank with
Emirates NBD (in terms of assets, one of the largest banking groups in the Middle East)
has executed transactions and remittance using block chain technology. Then in 2017, a
white paper has been issued by Institute for Development and Research in Banking
Technology (IDRBT) of RBI and also a pilot test was taken.

The Union finance minister in his Union Budget 2018 speech said, “The government does not
consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of
these crypto-assets in financing illegitimate activities or as part of the payment system.”

14
will need to prepare for the future and make adequate accommodations to safeguard
our global financial positioning. We also have to become ‘Atmanirbhar’ and reduce
our dependency in situations like the 2008 financial crisis or the 2020 COVID-19 crash.
Cyberwarfare also poses a sizable threat in our rapidly digitizing country. A
decentralized financial platform could help India resolve such issues and have an added
advantage as these platform networks will not be blocked by any single state or
country in times of national distress or conflict. The other advantage here would be
that if we could create our own social networks on Ethereum, it would help build a
decentralized ecosystem, which has its own positive effects

3.5 CRYPTOCURRENCY EXCHANGES IN THE INDIAN ECONOMY

1. WazirX:
Use Case: WazirX provides a user-friendly platform for buying, selling,
and trading a variety of cryptocurrencies. It is particularly known for its
integration with Binance, enabling seamless trading with global
liquidity.
2. CoinSwitch Kuber:
Use Case: CoinSwitch Kuber offers a straightforward interface for users
to trade a diverse range of cryptocurrencies. It aims to simplify the
trading experience and attract both beginners and experienced
traders.
3. ZebPay:
Use Case: ZebPay, an early entrant into the Indian crypto space,
facilitates the buying, selling, and storing of Bitcoin. It focuses on
providing a secure and user-friendly platform for cryptocurrency
transactions.
4. Unocoin:
Use Case: Unocoin is recognized for its services enabling users to buy,
sell, and store Bitcoin. It aims to make Bitcoin accessible to the masses
and offers features like systematic investment plans (SIPs) in Bitcoin.
5. Bitbns:
Use Case: Bitbns offers a diverse range of cryptocurrencies for trading,
including unique features like margin trading, lending, and futures
trading. It caters to both beginners and advanced traders.

15
6. PocketBits:
Use Case: PocketBits provides a straightforward platform for trading multiple
cryptocurrencies. It focuses on user convenience and aims to offer a seamless
trading experience.
7. Giottus:
Use Case: Giottus emphasizes high liquidity and a smooth trading experience. It
aims to meet the needs of both beginners and experienced traders by offering a
range of cryptocurrencies and competitive trading fees.
8. CoinDCX:
Use Case: CoinDCX stands as one of the largest cryptocurrency exchanges in
India, providing a comprehensive platform for trading various digital assets. It
offers features like margin trading and lending.
9. BitMart:
Use Case: BitMart, although international, has expanded its services to the Indian
market. It provides a global platform for trading a variety of cryptocurrencies,
aiming to offer a diverse range of options for users.
10. Binance:
Use Case: While Binance is a global exchange, it plays a significant role in the
Indian market through its acquisition of WazirX. Binance offers a broad range of
cryptocurrencies for trading and is known for its advanced trading features and
high liquidity.

Bitcoin uses blockchain (a peer-to-peer) network between the sender and the receiver. Only these
two parties are involved. It’s unlike any other method of transferring currency — which involves a
third party, like a bank. A middleman is prohibited from Bitcoin transactions.

And since that pesky third party doesn’t exist, it makes Bitcoin a tax-free currency. The
government doesn’t control or regulate Bitcoin.

3.6 BITCOIN: PIONEERING THE FUTURE OF DIGITAL CURRENCY IN

THE GLOBAL ECONOMY

3.6.1 BITCOIN STRENGTHS: CRYPTOCURRENCY CAN’T BE TRACKED OR

STOLEN.
For most Bitcoin users, this is an insane positive because it’s not folly to economic
turmoil. Bitcoin’s worth is agreed upon by the sender and the receiver. Not an institution.
Even if the economy crashes, Bitcoin can survive.

Surprisingly, this isn’t why Bitcoin’s popularity skyrocketed within the last few years

16
3.6.2 THE REAL STRENGTH IS THE SECRECY.

Every person in the Blockchain network has a private wallet address. Trading Bitcoin is fully
anonymous. It’s 100 percent untraceable. Unless you decide to make your wallet address —
but the majority of users don’t. Because the anonymity makes your financial data fully
hidden.

A unique PIN number assigned to each Bitcoin masks the identity of the seller. Once the
Bitcoin is sold, the PIN changes anew. At this point, only the buyer knows the PIN. It’s
irreversible, unless the current owner decides to change the ownership back.

Although this means nothing can be done once the Bitcoin is sent, it also means you can’t
steal this currency. You can steal your physical wallet. You can steal credit card info and
hijack your online bank account. But you can’t steal Bitcoin.

It’s because of this increased security that pushes people towards cryptocurrency

3.6.3 BITCOIN WEAKNESSES: CRIPPLING SLOW TRANSACTIONS

AND ACCESSIBILITY LOSS.

Bitcoin transactions aren’t as fast as they were a few years ago. This is one of the downsides
of Blockchain: the more people use it, the more Blockchain limits your transactions speeds.

Basically, the blocks get bigger the more it’s in use. Making the whole process clunky and
slow. Until this problem is resolved, it’s unlikely Bitcoin currency will usurp conventional
credit card usage.

17
The system isn’t the only issue.

Don’t forget about the Bitcoin wallet password problem. Since the transactions are encrypted,
recovering a lost password isn’t possible. You’d be surprised how often people forget their
password and lose access to their Bitcoins. In fact, one man bought a few Bitcoin years ago
when it was dirt cheap. Now it’d be worth millions… if only he could find his password to his
wallet.

And what about the survivability of Bitcoin?

The value of Bitcoin has shifted relentlessly over the years. And despite the rocky nature, the
media pushes out stories claiming Bitcoin is the future of money.

It’s just like stocks, however; unpredictable and unreliable. Tomorrow, the value could
skyrocket. The day after, it may plummet. The reliability of this currency is too questionable
to replace traditional money.

3.6.4 BITCOIN OPPORTUNITIES: SAFETY FROM COMPROMISING

DATA BREACHES

As a society, we’re moving away from physical money in favor of cashless currencies. In fact,
big names like Amazon are already accepting Bitcoin as payment for their goods. If companies
the size of Amazon are recognizing Bitcoins’ viability, it’s safe to assume others will follow.

And what about the growing hostility between the public and the banking institutions?

People are looking for safe, secure, and practical means to avoid using banks. Data breaches,
involving customer data, is consistently occurring with brands like Facebook and Wells Fargo.
How long until the breaches steal credit card info?

No one wants to find out. And others are moving towards Bitcoin. Even with the hang-ups, it’s
safe. Anonymous. And doesn’t involve third parties.

And the opportunities don’t stop there.

The blockchain is a phenomenal technology with much promise. The blocks may be able to
keep data like criminal records, birth certificates, and public records private. It may pave the
way for impenetrable encryption. That’s something the masses are leaning towards for data
protection.

18
3.6.5 BITCOIN THREATS: THE ANONYMITY AGAINST
GOVERNMENTS AND BANKS.

Anonymity is a benefit. An opportunity. But it’s also a problem.

In the wrong hands, anonymous buying is dangerous. Knowing the transaction is untraceable
will attract the attention of criminals. Because let’s be honest: the more people accept Bitcoin,
the more it’ll likely be used for more nefarious reasons.

It’ll also be a problem for the government or law enforcement, after all. If more criminals
adopt Bitcoin into their illegal purchases, law enforcement will face a challenge in finding and
prosecuting these criminals.

As such, we may see more policies and laws regarding cryptocurrency.

Although it may be difficult to enforce thanks to the anonymity, the
government will still try.

People fear the consequences of these bills. New tech policies miss the mark. Not enough
government officials understand the implications of using Blockchain and cryptocurrency.
Instead of learning, they’re more likely to slap
on a bill and hope for the best.

Bitcoin isn’t the only cryptocurrency on the market. After its rise in popularity, alternatives
like Ethereum and Peercoin hit the markets. If the value of these alternative skyrockets,
Bitcoin may be in trouble. To be honest, the overall value of cryptocurrency and lack of
reliability is a threat to Bitcoin and its competitors.

And just because cryptocurrency appears infallible now, doesn’t mean it will in the future. As
more information about it surfaces, the holes will reveal themselves. People, such as criminals,
will take advantage of the issues ASAP.

19
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
 TABLE NO. 4.1 FAMILIARITY OF CRYPTOCURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Very familiar
28 56%

Somewhat
22 44%
familiar

Not familiar 0 0

Total 50 100%

Source: Primary Data

Very familiar Somewhat familiar Not familiar

44%
56%

FIGURE No . 4.1

INTERPRETATION

Table 4.1 indicates a high level of familiarity with cryptocurrency among respondents,
with 56% stating they are "very familiar" and 44% reporting being "somewhat familiar."
Notably, none of the respondents claimed to be "not familiar" with cryptocurrency.

20
 TABLE NO. 4.2 INVESTORS IN CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

YES 45 90%

NO 5 10%

Total 50 100%

Source: Primary Data

NO YES

10%

90%

FIGURE No.4.2

INTERPRETATION
Table 4.2 outlines the respondents' status as investors in cryptocurrency. The data reveals
that the majority, comprising 90% of respondents, are investors in cryptocurrency, while
10% reported not being investors. This suggests a considerable level of participation in
cryptocurrency investment among the surveyed population.

21
 TABLE NO 4.3 COMMON CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

BITCOIN 27 54%

ETHEREUM 14 28%

DOGECOIN 7 14%

OTHERS 2 4%

Total 50 100%

Source: Primary Data

OTHERS DOGECOIN ETHEREUM BITCOIN

4%

14%

54%

28%

FIGURE No.4.3

INTERPRETATION
In Table 4.3, which examines common cryptocurrencies among 50 respondents, Bitcoin
stands out as the most popular choice at 54%, followed by Ethereum at 28%, and
Dogecoin at 14%. Other cryptocurrencies collectively represent 4% of the responses. This
data indicates a clear preference for Bitcoin among the surveyed group, with varying
levels of interest in Ethereum, Dogecoin, and other digital currencies.

22
 TABLE NO 4.4 CRYPTO CURRENCY'S VITAL ROLE IN
THE ECONOMY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

STRONGLY AGREE 18 36%

AGREE 12 24%

NEUTRAL 8 16%

DISAGREE 5 10%

STRONGLY
7 14%
DISAGREE

Total 50 100%

Source: Primary Data

STRONGLY DISAGREE DISAGREE

NEUTRAL AGREE STRONGLY AGREE

14%

10%
36%

16%

FIGURE NO.4.4
24%

INTERPRETATION
Table 4.4 reveals diverse opinions on the role of cryptocurrency in the Indian economy
among 50 respondents. A significant 36% strongly agree, and 24% agree that
cryptocurrency plays a vital role. Meanwhile, 16% remain neutral, 10% disagree, and 14%
strongly disagree. This data highlights a spectrum of perspectives on the significance of
cryptocurrency in the Indian economic context.

23
 TABLE NO 4.5 FACTORS AFFECTING INVESTOR’S DECISION

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

REGULATORY
12 24%
ENIRONMENT
TAXATION POLICIES
10 20%

DIGITAL PAYMENTS
ADOPTION 17 34%

ECONOMIC STABILITY
11 22%

Total 50 100%

Source: Primary Data

REGULATORY ENIRONMENT TAXATION POLICIES

DIGITAL PAYMENTS ADOPTION ECONOMIC STABILITY

22%
24%

20%
34%
FIGURE NO.4.5

INTERPRETATION
Table 4.5, outlines factors influencing cryptocurrency investment decisions among 50
respondents. Notably, 34% consider "Digital Payments Adoption" crucial, 24% emphasize
the "Regulatory Environment," 20% highlight "Taxation Policies," and 22% factor in
"Economic Stability." This data reflects a varied landscape of considerations, showcasing
the importance of both regulatory conditions and technological trends in shaping investors'
decisions within the cryptocurrency space.

24
 TABLE NO 4.6 AWARENESS ABOUT GOVERNMENT RULES

RESPONSE NO OF RESPONDANTS PERCENTAGE

YES 38 76%

NO 12 24%

Total 50 100%

Source: Primary Data

YES NO

24%

76%

FIGURE NO.4.6

INTERPRETATION

Table No. 4.6 sheds light on respondents' awareness of government rules concerning
cryptocurrency. The majority, comprising 76% of respondents, indicated awareness of
these rules, while 24% reported not being aware. This data highlights varying levels of
understanding among respondents regarding the regulatory framework surrounding
cryptocurrency in their respective jurisdictions.

25
 TABLE 4.7 CHALLENGES FACED BY INVESTORS

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Volatility
14 28%

Security Concerns
16 32%

Regulatory Uncertainty
8 16%

Lack of Investor Protections

12 24%

Total 50 100%

Source: Primary Data

Volatility Security Concerns Regulatory Uncertainty

Lack of Investor Protections

24% 28%

16%
32%

FIGURE NO.4.7

INTERPRETATION
Table 4.7 provides insights into the challenges faced by cryptocurrency investors among
50 respondents. Notably, 28% identify "Volatility" as a significant concern, while 32%
express "Security Concerns." "Regulatory Uncertainty" is acknowledged by 16%, and 24%
cite the "Lack of Investor Protections" as a challenge. This diverse range of challenges
suggests that investors grapple with issues related to market stability, security, regulatory
clarity, and investor safeguards in the dynamic landscape of cryptocurrency investments.
Addressing these concerns could play a crucial role in fostering confidence and stability
within the cryptocurrency market.

26
TABLE 4.8 RISKS FACED DURING INVESTING IN CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Market volatility
9 18%

Regulatory uncertainty
15 30%

Security concerns
16 32%

Exchange risks
10 20%

Total 50 100%

Source: Primary Data

Market volatility Regulatory uncertainty Security concerns Exchange risks

20% 18%

30%
32%

FIGURE NO.4.8

INTERPRETATION

Table 4.8 provides insights into the challenges faced by cryptocurrency investors among 50
respondents. Notably, 28% identify "Volatility" as a significant concern, while 32% express
"Security Concerns." "Regulatory Uncertainty" is acknowledged by 16%, and 24% cite the
"Lack of Investor Protections" as a challenge. This diverse range of challenges suggests that
investors grapple with issues related to market stability, security, regulatory clarity, and
investor safeguards in the dynamic landscape of cryptocurrency investments. Addressing these
concerns could play a crucial role in fostering confidence and stability within the
cryptocurrency market.
27
TABLE 4.9 BENEFICIALITY OF CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

YES
40 80%

NO
10 20%

Total 50 100%

Source: Primary Data

YES NO

20%

80%

FIGURE NO.4.9

INTERPRETATION

Table 4.9 gauges respondents' perspectives on the benefits of cryptocurrency for the
Indian economy, with 80% expressing a positive outlook by answering "Yes," and 20%
holding a contrary view with a response of "No." The substantial majority in favor of
cryptocurrency's perceived benefits suggests a prevalent belief among the surveyed group
that this form of digital currency can contribute positively to the Indian economy. This
data underscores the diverse opinions within the surveyed population, reflecting the
ongoing discourse surrounding the role and potential advantages of cryptocurrency in the
economic landscape.

28
TABLE 4.10 CONTRIBUTION OF CRYPTO CURRENCY TO FOSTERING
FINANCIAL INCLUSIVENESS

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Accessibility
11 22%

Regulations
20 40%

Transparency
9 18%

Adoption trends
10 20%

Total 50 100%

Source: Primary Data

Accessibility Regulations Transparency Adoption trends

22%
20%

18%

40%

FIGURE NO.4.10

INTERPRETATION
Table 4.10 delves into respondents' perspectives on how cryptocurrency contributes to fostering
financial inclusiveness in India. Among the 50 respondents, 22% emphasize "Accessibility," while a
substantial 40% highlight the importance of "Regulations." "Transparency" is acknowledged by
18%, and "Adoption trends" are considered by 20%. These findings suggest a multifaceted
understanding of the factors contributing to financial inclusiveness through cryptocurrency. The
significant emphasis on regulatory frameworks and adoption trends implies that respondents
recognize the role of clear regulations and widespread acceptance in enhancing financial
inclusiveness in the Indian context through the use of cryptocurrency.

29
 TABLE 4.11 SOURCES OF INFORMATION ABOUT CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Books/ Articles 7 14%

News outlets
22 44%

Social media
14 28%

Others
7 14%

Total 50 100%

Books/ Articles News outlets Social media Others

14%
14%

28%

44%

FIGURE NO.4.11

INTERPRETATION
Table 4.11 provides insights into the diverse sources relied upon by respondents for information
about cryptocurrency. Among the 50 participants, 14% turn to "Books/Articles," while a
significant 44% primarily rely on "News Outlets" for their cryptocurrency-related information.
"Social Media" serves as an information source for 28%, and "Others" represent 14% of
respondents. These findings underscore the varied channels through which individuals seek
information about cryptocurrency, with a notable preference for real-time updates from news
outlets. The data reflects the multi-faceted and dynamic nature of information consumption
within the surveyed population regarding cryptocurrency.

30
 TABLE 4.12 PRIMARY REASON FOR BUYING CRYPTO ASSETS

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Long - term investment 7 14%

Short- term gains 20 40%

13
As a means of transaction 26%

Others 10 20%

Total 50 100%

Source: Primary Data

20

15

10

0
Long-term Short-term For Transaction OTHERS
FIGURE NO.4.12

INTERPRETATION
Table 4.12 provides insights into the primary reasons for purchasing crypto assets among the 50
respondents. A notable 14% view crypto assets as a "Long-term investment," suggesting a strategic
and enduring approach. A larger portion, comprising 40%, is motivated by the potential for
"Short-term gains," reflecting an inclination towards quick returns. Additionally, 26% utilize
crypto assets as a "Means of transaction," indicating their practical use beyond the scope of
investment. The category "Others" represents 20%, revealing diverse and nuanced reasons beyond
the provided options. This data underscores the varied motivations and goals that individuals
have for engaging with crypto assets, highlighting the multifaceted nature of preferences within
the surveyed population.

31
TABLE 4.13 RISKS PERCEIVE WITH CRYPTO CURRENCY
INVESTMENTS
NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Very High-risk 12 24%

High risk 8 16%

Moderate risk 25 50%

Low risk 5 10%

Total 50 100%

Source: Primary Data

25

20

15

10

0
Very High Risk High Risk Moderate Risk Low Risk

FIGURE NO.4.13
INTERPRETATION
Table 4.13 provides an overview of the respondents' perceptions regarding the risk associated with
cryptocurrency investments among the 50 participants. Notably, 24% perceive these investments
as "Very High-risk," indicating a significant awareness of the potential volatility and uncertainty
in the cryptocurrency market. Additionally, 16% consider them "High risk," while a larger
proportion of 50% views cryptocurrency investments with a "Moderate risk." A minority of 10%
perceives these investments as carrying a "Low risk." This data portrays a diverse range of risk
perceptions within the surveyed population, highlighting varying levels of comfort and caution
among participants regarding the potential risks associated with cryptocurrency investments.

32
TABLE 4.14 CONFIDENTS ABOUT GOVERNMENT'S APPROACHS TO
HANDLING CRYPTO CURRENCY USAGES

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Very confident 13 26%

Somewhat confident 8 16%

Not very confident 17 34%

Not confident at all 12 24%

Total 50 100%

Source: Primary Data

20

15

10

0
Very Confident Somewhat Not Very Not Confident
FIGURE NO.4.14

INTERPRETATION
Table 4.14 delves into the respondents' confidence levels regarding the Indian government's
approach to handling cryptocurrency usage among the 50 participants.
A notable 26% express being "Very confident," indicating a degree of assurance in the
government's stance. Additionally, 16% are "Somewhat confident," while a larger portion of 34%
admits to being "Not very confident." Another 24% state that they are "Not confident at all,"
suggesting a significant degree of skepticism or lack of trust in the government's approach. These
varied responses reflect a range of sentiments within the surveyed population, showcasing
differing levels of confidence and skepticism towards the Indian government's handling of
cryptocurrency usage.

33
 TABLE 4.15 GOVERNMENT REGULATATION IN CRYPTO
CURRENCIES

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Yes, strictly 12 24%

Yes, but with lenient

15 30%
regulations

No 14 28%

Not sure 9 18%

Total 50 100%

Source: Primary Data

20

15

10

0
Strictly Lenient regulations No Not sure
FIGURE NO.4.15

INTERPRETATION
Table 4.15 presents the diverse opinions of 50 respondents on whether the Indian government should
regulate cryptocurrencies. A significant 24% assert "Yes, strictly," advocating for robust regulations, while
30% believe in regulation but with leniency, stating "Yes, but with lenient regulations." On the contrary,
28% oppose regulation entirely, answering "No," and 18% express uncertainty with a response of "Not sure."
These varied perspectives underscore the complex considerations within the surveyed population regarding
the role and extent of government regulation in the realm of cryptocurrencies in India. The data reflects a
spectrum of opinions, ranging from advocating for stringent oversight to those favoring more permissive
regulatory approaches or expressing skepticism towards regulation altogether.

34
 TABLE 4.16 INTERESTS IN EDUCATIONAL PROGRAMS ABOUT
CRYPTOCURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Yes 26 52%

No 3 6%

Maybe 13 26%

I'm not sure 8 16%

Total 50 100%

Source: Primary Data

30

25

20

15

10

0
Yes No Maybe Not sure
FIGURE NO.4.16

INTERPRETATION
Table 4.16 reveals the level of interest among 50 respondents regarding educational programs about
cryptocurrency. A significant majority of 52% express a keen interest with a "Yes," indicating a positive
inclination towards enhancing their understanding of this financial technology. Only a small percentage of
6% outright decline with a "No." Meanwhile, 26% respond with a "Maybe," suggesting a potential openness
to educational initiatives in the future. Additionally, 16% express uncertainty, choosing "I'm not sure."
Overall, these responses indicate a substantial interest within the surveyed group for educational programs
about cryptocurrency, emphasizing the importance of knowledge and awareness in this evolving financial
landscape.

35
TABLE 4.17 RECOMMENDATIONS FOR PROSPECTIVE INVESTMENTS
IN CRYPTOCURRENCIES

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Very likely 12 24%

Somewhat likely 14 28%

Not likely 17 34%

Definitely not 7 14%

Total 50 100%

Source: Primary Data

20

15

10

0
Very likely Somewhat Not likely Definitely not
FIGURE NO. 4.17

INTERPRETATION
Table 4.17 provides insights into respondents' likelihood of recommending cryptocurrency investments to
friends and family among the 50 participants. A notable 24% express a high likelihood with a "Very likely"
response, while 28% are "Somewhat likely" to make such recommendations. On the other hand, 34%
indicate they are "Not likely" to recommend, and 14% respond with a definitive "Definitely not." These
responses highlight a spectrum of attitudes within the surveyed group, showcasing varying levels of
confidence and reluctance when it comes to suggesting cryptocurrency investments to close associates. The
data reflects the diverse opinions and considerations individuals hold in terms of advising others on
involvement in the cryptocurrency market.

36
TABLE 4.18 HOW LIKELY DO YOU INVEST IN CRYPTOCURRENCIES

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

I want to invest in cryptocurrencies

9 18%
as soon as possible

I want to invest in cryptocurrencies

21 42%
in the next 3 years.

I want to invest in cryptocurrencies

7 14%
in the next 7 years.

I don't want to invest in the

13 26%
cryptocurrencies.

Total 50 100%

Source: Primary Data

25

20

15

10

0
Soon as possible Next 3 years Next 7 years Don't want
FIGURE NO. 4.18

INTERPRETATION

In Table 4.18, 18% of respondents express eagerness to invest in cryptocurrencies "as soon as possible,"
while 42% plan to invest "in the next 3 years." A smaller group of 14% extends their timeline to "the next 7
years." However, 26% state that they "don't want to invest in cryptocurrencies," indicating a notable portion
remaining hesitant or uninterested in cryptocurrency investments. This data showcases diverse attitudes and
timelines within the surveyed group regarding engaging with cryptocurrencies.

37
 TABLE 4.19 FACTORS DISCOURAGE FROM INVESTING IN THE
CRYPTO CURRENCY
NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Lack of knowledge 18 36%

Fear of loss 15 30%

Investment scams 9 18%

Market complexities 8 16%

Total 50 100%

Source: Primary Data

20

15

10

0
Lack of knowledge Fear of loss Scams Competition
FIGURE NO.4.19

INTERPRETATION
Table 4.19 delves into the factors discouraging 50 respondents from investing in cryptocurrency. A
significant 36% attribute their hesitation to a "Lack of knowledge," underscoring the importance of
education and awareness in the cryptocurrency space. A substantial 30% express a "Fear of loss," reflecting
concerns about potential financial risks. Additionally, 18% cite worries about "Investment scams,"
indicating a level of skepticism regarding the security of cryptocurrency investments. Another 16% are
discouraged by "Market complexities," suggesting perceived challenges in understanding the intricacies of
the cryptocurrency market. These diverse factors contribute to the overall reluctance within the surveyed
group, highlighting the multifaceted considerations influencing individuals' decisions regarding
cryptocurrency investments.

38
TABLE 4.20 MAIN CONCERN OR FEAR WHEN IT COMES TO INVESTING
IN THE CRYPTOCURRENCY
NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Uncertainty 7 14%

Fear of loss 16 32%

Emotional Biases 14 28%

Complexity of investments 13 26%

Total 50 100%

Source: Primary Data

20

15

10

0
Uncertainty Fear of loss Emotional base Complexity of investment
FIGURE NO . 4.20

INTERPRETATION
Table 4.20 sheds light on the primary concerns and fears of 50 respondents regarding cryptocurrency
investments. A notable 14% express apprehension about the "Uncertainty" associated with these
investments, indicating the unpredictable nature of the cryptocurrency market. A significant 32% cite a
"Fear of loss," emphasizing the impact of potential financial risks on investor decisions. Furthermore, 28%
highlight "Emotional biases" as a concern, suggesting the influence of emotions on investment decisions.
Another 26% are troubled by the "Complexity of investments," reflecting perceived challenges in
understanding the intricacies of the cryptocurrency market. These diverse concerns contribute to a nuanced
landscape of fears within the surveyed group, influencing their attitudes and decisions related to
cryptocurrency investments.

39
TABLE 4.21 OVERALL SATISFACTION TOWARDS CRYPTO CURRENCY

NO OF
RESPONSE PERCENTAGE
RESPONDANTS

Highly satisfied 7 14%

Satisfied 11 22%

Neutral 8 16%

Dissatisfied 13 26%

Highly Dissatisfied 11 22%

Total 50 100%

Source: Primary Data

14

12

10

0
High satisfied Satisfied Neutral Dissatisfied High dissatisfied
FIGURE NO.4.21

INTERPRETATION
Table 4.21 provides insights into the overall satisfaction levels of 50 respondents regarding cryptocurrency.
A modest 14% express being "Highly satisfied," while 22% report being "Satisfied." A similar percentage of
16% remains "Neutral" in their satisfaction. However, a notable 26% indicate being "Dissatisfied," and
another 22% report being "Highly Dissatisfied." These diverse responses highlight a range of sentiments
within the surveyed group, indicating varying degrees of contentment or dissatisfaction with cryptocurrency
experiences. The data underscores the nuanced perspectives individuals hold towards this financial
technology.

40
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION
Based on the comprehensive overview of the cryptocurrency landscape presented
in the introduction through to the theoretical framework, here is a synthesized set
of findings, suggestions, and conclusions:

FINDINGS:

About 56% of respondents are "very familiar" with cryptocurrency, while 44%
are "somewhat familiar," indicating widespread awareness and knowledge
about cryptocurrency.
About 90% of respondents are investors in cryptocurrency, indicating a
substantial level of participation in the crypto market among the surveyed
population.
Bitcoin emerges as the most popular cryptocurrency choice among
respondents, highlighting its dominance in the market, with 54% favoring it.
Ethereum and Dogecoin follow Bitcoin, showcasing varied preferences in
cryptocurrency investments, with 28% and 14% of respondents favoring them,
respectively.
Diverse opinions exist regarding the role of cryptocurrency in the Indian
economy, with 60% expressing agreement or strong agreement on its
significance.
76% of respondents are aware of government rules concerning cryptocurrency,
revealing a notable understanding of the regulatory framework among the
surveyed population.
Challenges faced by cryptocurrency investors include volatility (28%), security
concerns (32%), regulatory uncertainty (16%), and lack of investor protections
(24%).
Perceptions of cryptocurrency as beneficial to the Indian economy are
widespread, with 80% expressing optimism about its potential impact.
Factors influencing cryptocurrency investment decisions include digital
payments adoption (34%), regulatory environment (24%), taxation policies
(20%), and economic stability (22%).
Among information sources, news outlets are the primary choice for
cryptocurrency updates, with 44% of respondents relying on them.
Respondents express a keen interest in educational programs about
cryptocurrency, with 52% indicating a desire for further knowledge.
A significant portion (52%) of respondents is likely to recommend
cryptocurrency investments to friends and family, indicating confidence in this
asset class.
Respondents plan to invest in cryptocurrencies within the next three years,
with 40% expressing intentions to do so.

42
Concerns discouraging cryptocurrency investments include a lack of
knowledge (36%), fear of loss (30%), and worries about investment scams
(18%).
Respondents view cryptocurrency investments with a moderate level of risk
(50%), reflecting a balanced perspective on potential risks.
Confidence in the Indian government's approach to cryptocurrency varies,
with 50% expressing varying degrees of skepticism or lack of confidence.
Opinions on cryptocurrency regulation in India are divided, with 54%
advocating for either strict regulations or regulations with leniency.
Emotional biases (28%) and the complexity of investments (26%) are
significant concerns for respondents regarding cryptocurrency investments.
Satisfaction levels with cryptocurrency experiences vary, with 36% reporting
neutral to negative sentiments, suggesting room for improvement in user
experiences.
Despite challenges and uncertainties, there is a notable level of interest (52%)
and satisfaction (36%) among respondents regarding cryptocurrency,
indicating enduring optimism and engagement with this financial technology.

43
SUGGESTIONS:

Conduct regular educational workshops or webinars to enhance understanding

of cryptocurrency among the general population.
Collaborate with regulatory bodies to establish clear guidelines and
regulations for cryptocurrency usage and investment.
Enhance security measures on cryptocurrency platforms to address concerns
about hacking and theft.
Implement measures to increase transparency in cryptocurrency transactions
to build trust among investors.
Develop user-friendly mobile applications for easy access to cryptocurrency
trading and investment.
Launch awareness campaigns to educate the public about the potential risks
and rewards of cryptocurrency investments.
Foster partnerships with traditional financial institutions to integrate
cryptocurrency services into mainstream banking.
Establish cryptocurrency-focused funds or investment products to cater to
investors with varying risk appetites.
Offer incentives or rewards for users who participate in educational programs
or refer others to cryptocurrency platforms.
Continuously monitor and adapt to changes in the cryptocurrency market and
regulatory landscape to ensure compliance and security.

44
CONCLUSION:

The landscape of cryptocurrency presents a dynamic yet complex realm,

characterized by significant interest and participation from a diverse range of
individuals. The findings from the data analysis underscore a prevalent awareness
and curiosity regarding cryptocurrency among the surveyed population, with a
majority expressing some degree of familiarity with this financial technology.
However, a notable portion remains unfamiliar, highlighting an opportunity for
educational initiatives to bridge the knowledge gap and foster broader
understanding. Moreover, the data reveals a substantial presence of
cryptocurrency investors within the surveyed group, reflecting varied levels of
engagement and interest in leveraging digital assets for investment purposes.
Despite the enthusiasm for cryptocurrency investments, the findings also shed
light on the challenges and concerns faced by investors, including volatility,
security risks, and regulatory uncertainties. Addressing these challenges will be
crucial in building confidence and stability within the cryptocurrency market,
thereby facilitating its integration into mainstream financial systems.

In response to the findings, several recommendations emerge to enhance the

landscape of cryptocurrency and maximize its potential benefits while mitigating
risks. Educational efforts should be intensified to equip individuals with the
knowledge and skills needed to navigate the cryptocurrency space effectively.
Collaboration with regulatory bodies is essential to establish clear guidelines and
regulations that promote transparency, security, and investor protection.
Additionally, enhancing security measures on cryptocurrency platforms and
fostering partnerships with traditional financial institutions can bolster trust and
facilitate broader adoption. Awareness campaigns and incentives can incentivize
participation in educational programs and promote responsible investment
practices. Moreover, continuous monitoring and adaptation to market dynamics
and regulatory changes are imperative to ensure the resilience and sustainability of
the cryptocurrency ecosystem. By implementing these recommendations,
stakeholders can work towards harnessing the transformative potential of
cryptocurrency while addressing the challenges and uncertainties inherent in this
rapidly evolving domain.

45
BIBLIOGRAPHY
 BIBLIOGRAPHY

Websites

www.wikipedia.com

www.investopedia.com

www.analyticsinsight.net

www.slideshare.net

www.blog.ipleaders.in

www.financialexpress.com
https://docs.google.com/forms/d/e/1FAIpQLSfwaIm72zcwLoQn7l0Egm3cCGbB0Ao

pVleUBLX8_pB3FTKY9w/closedform

www.academia.edu

www.scroll.in

www.economictimes.indiatimes.com

Books

• Mastering Bitcoin: Programming the Open Blockchain by Andreas M.

Antonopoulos.

• The Bitcoin Standard: The Decentralized Alternative to Central Banking

by Saifedean Ammous

• The Book of Satoshi: The Collected Writings of Bitcoin Creator Satoshi

Nakamoto by Phil Champagne

• The Age of Cryptocurrency: How Bitcoin and Digital Money Are

Challenging the Global Economic Order by Paul Vigna and Michael

Casey.

• The Missing Cryptoqueen by Jamie Bartlett.

APPENDIX
 A STUDY ON INVESTORS PERCEPTION TOWARDS
CRYPTOCURRENCY
QUESTIONAIRE

NAME:

GENDER: Male Female Other

AGE : 18-29 30-40 41-52 52 Above

MARITIAL STATUS : Single Married

ANNUAL INCOME : Less than 1lakhs 1- 2 lakhs 2 - 5 lakhs Above 5 lakhs

EDUCATIONAL High School Higher Secondary Undergraduate

QUALIFICATION: Postgraduate PHD

ARE YOU FAMILIAR WITH THE Very familiar Somewhat familiar

CONCEPT OF CRYPTO CURRENCY : Not familiar

HAVE YOU INVESTED IN CRYPTO

yes no
CURRENCY :

WHICH CRYPTO CURRENCIES Bitcoin Ethereum

ARE YOU FAMILIAR WITH : Dogecoin others

DO YOU THINK CRYPTO CURRENCY Stronlgy Agree Agree Neutral

PLAY A VITAL IN ECONOMY : Disagree Strongly Agree

ARE YOU AWARE OF ANY GOVERNMENT Yes

RULES APPLICABLE FOR CRYPTO : No

WHAT FACTORS WILL AFFECT INVESTOR’S Regulatory environment Taxation policies

DECISION TO INVEST IN CRYPTO Digital payments adoption Economic stability
CURRENCY?

WHAT ARE THE CHALLENGES FACED BY Volatility Security Concerns

THE CRYPTO CURRENCY INVESTORS Regulatory Uncertainty Lack of Investor
Protections
WHAT TYPES OF RISKS DO INVESTORS
FACE WHEN INVESTING IN CRYPTO Market volatility Regulatory uncertainty
CURRENCY ? Security concerns Exchange risks

DO YOU THINK CRYPTO CURRENCY IS Yes

BENEFICIAL FOR ECONOMY :
No
HOW DOES CRYPTO CURRENCY Accessibility Regulations
CONTRIBUTE TO FOSTERING FINANCIAL Transparency Adoption trends
INCLUSIVENESS ?

WHAT SOURCES DO YOU REPLY ON FOR Books/ Articles News outlets

THE INFORMATION ABOUT THE CRYPTO Social media Others
CURRENCY?

WHAT IS YOUR PRIMARY REASON FOR Long - term investment Short- term gains
BUYING CRYPTO ASSETS? As a means of Others
transaction

HOW DO YOU PERCEIVE THE RISK Very High-risk High risk

ASSOCIATED WITH THE Moderate risk Low risk
CRYPTOCURRENCY INVESTMENTS?

HOW CONFIDENT ARE YOU IN THE Very confident Somewhat confident

GOVERNMENT'S APPROACH TO Not very confident Not confident at all
HANDLING CRYPTOCURRENCY USAGES?

DO YOU BELIEVE THE GOVERNMENT Yes, strictly Yes, but with lenient regulations
SHOULD REGULATE No Not sure
CRYPTOCURRENCIES?

WOULD YOU BE INTERESTED IN Yes No

EDUCATIONAL PROGRAMS ABOUT Maybe I'm not sure
CRYPTOCURRENCY?

HOW LIKELY ARE YOU TO RECOMMEND Very likely Somewhat likely

INVESTING IN CRYPTOCURRENCIES TO Not likely Definitely not
FRIENDS AND FAMILY?

HOW LIKELY DO YOU I want to invest incryptocurrencies as I want to invest in crypto

INVEST IN soon as possible currencies in the next 3
years.
CRYPTOCURRENCIES ?
I want to invest in cryptocurrencies in I don't want to invest in the
the next 7 years. cryptocurrencies.

WHAT IS THE FACTOR DISCOURAGE YOU Lack of knowledge Fear of loss

FROM INVESTING IN THE Investment scams Market complexities
CRYPTOCURRENCY

WHAT IS THE MAIN CONCERN OR FEAR Uncertainty Uncertainty

WHEN IT COMES TO INVESTING IN THE Complexity of investments
Emotional Biases
CRYPTOCURRENCY?

YOUR OVERALL SATISFACTION TOWARDS Highly satisfied Satisfied Neutral

CRYPTOCURRENCY ? Dissatisfied Highly Dissatisfied