While miners have been scrambling to locate the next big mining hub after the crackdown in China, an overlooked India may offer an untapped opportunity. Despite ongoing regulatory concerns, there is significantly growing interest in crypto from the Indian population.
Such growth is corroborated by the fact that global cryptocurrency exchange Coinbase shows no concern for these regulatory threats and is aggressively increasing their presence in the region. A culture appreciative of gold, there is a visible shift in interest in India towards a new, digital gold: Bitcoin.
In this Wattum post, we analyze this rapidly growing space and provide you with the latest need-to-know information on Bitcoin in the Indian market. For further information, Wattum holds international expertise and can help entities establish mining operations in high potential markets all around the world, including India.
Bitcoin Regulatory Landscape in India
There is a bill in consideration in parliament that may impose a ban on all private cryptocurrencies in India. The bill would also introduce a framework for an official digital currency to be issued by the Reserve Bank of India. The intent to shut down domestic mining means local miners will have up to six months to liquidate their equipment and coins. If passed, this bill will be one of the strictest anti-crypto policies in the world as it would penalise even holding cryptocurrency.
Nirmala Sitharaman, the Finance Minister of India, shared her position in March: "I can only give you this clue that we are not closing our minds, we are looking at ways in which experiments can happen in the digital world and cryptocurrency." While the Indian government shows a strict stance against cryptocurrencies right now, the region’s enormous potential for crypto mining due to extensive land availability and an abundance of renewable energy sources, predominantly solar and wind, leaves room to assume that the significant economic potential this could bring to India will be soon acknowledged. Until that game-changing decision occurs, Indian crypto enthusiasts can mine with Wattum in other countries overseas where we have built relationships in regions with crypto-friendly regulations and plentiful growth opportunities.
Future Growth Potential
Despite concerns about the potential bill, Coinbase recently announced the opening of an office in India. Given India’s reputation for fostering strong technological minds, there has been huge growth in the creation and support of local crypto projects. Coinbase plans on taking advantage of this in order to establish a domestic tech hub for boosting innovation within the Indian cryptocurrency industry. Their moves are ambitious, shown through their exploration of potential acquisitions and large hiring plans for multiple teams.
India’s huge strides into the renewable energy market have made it an even more attractive market for miners, as renewables development is likely to give rise to abundant opportunities for miners to secure low-cost power. Despite the lack of expectation to meet their 2022 goals for clean energy, the country will continue to gradually increase their sustainable energy sources. Their solar photovoltaics energy and wind energy capacities as of 2021 are at 40.6GW and 39GW, respectively. India has one of the highest solar irradiance (which is the power per unit area received from the sun) in the world, making solar energy bountiful. They are also currently the largest solar module importer in the world, buying mostly from China and Malaysia. Many locations in India have low electricity rates that present the perfect opportunity for mining, which is only getting stronger given the new energy plans.
Neighbouring Pakistan has also recently announced a clearing of regulations to allow domestic expenditure into Bitcoin mining facilities. The country’s crypto-friendly approach is likely to affect the decisions made by the Indian government as Pakistan will now be generating huge profits from this booming industry.
Getting into the Game
Wattum has international experience in choosing blossoming crypto hot spots before they gain mainstream attention, and is now giving you the opportunity to capitalize on others. We have offered hosting opportunities in Kazakhstan since early 2021, and now the largest Bitcoin mining companies around the world are frantically rushing to open operations in the region. Looking at the actions taken by Coinbase, it is clear that the Indian population is significantly composed of crypto enthusiasts who are now faced with a dilemma in their interest in light of strict regulations. India may be the next hub for cryptocurrency mining activities, and Wattum is uniquely positioned to help miners capitalize on this.
Our Indian Region Sales Chief, Ishan, specializes in helping miners in the region to effectively and quickly establish and scale operations. Getting in early is invaluable, and Wattum can provide you with expert support and resources in order to do so. Offering equipment, hosting, and access to mining pools, Wattum provides a suite of solutions that will help you begin or successfully continue your journey in Bitcoin mining.