Bitcoin Vs Traditional Investments: Is India Ready For A Crypto Revolution?

By Roshan Aslam

In the last one and a half decades, the very nature of investments has witnessed a significant shift. What was previously perceived as a gradual process involving patience and considerable time, the emergence of DeFi (Decentralized Finance) has transformed that entirely. For example, Bitcoin was priced at only 10 cents on December 31, 2010. It has since soared beyond all recognition, and is valued at the north of $100,000 in 2025. During the same period, the best of the conventional assets, like gold, land or equity, have failed to deliver a fraction of the return Bitcoin has generated, despite being more resistant to market volatilities. 

While Bitcoin’s massive gain in the last 15 years calls for a detailed case study on its own, Indians have been rather resistant to the idea of investing in this new-age risk asset. Even in 2025, the majority of Indians prefer Fixed Deposits (FDs), Mutual Funds, Equity, land and gold over new-age alternatives like Bitcoin. While preferences have nothing to do with investment tactics or risk appetite, it's important in terms of diversification, being one of the foundational rules of investments. The majority of Indian investors have already been late when it comes to Bitcoin; however, with one of the highest adoption rates in the world, it calls for serious considerations regarding adopting BTC as the new-age wealth creator over traditional investments.

Return on Investments

Historically, Indians have always preferred physical assets over anything else. Land and gold have been the primary investment assets for Indians for generations. However, while these assets have their usefulness, they are also largely finite assets. As a result, real estate and gold prices have inflated over the years, meaning only a fraction of Indians today are positioned to make bulk investments in them. 

This is where Bitcoin offers a new direction for investing. While many would argue that Bitcoin is also a finite asset and has inflated much over the last few years, what sets Bitcoin apart is how it allows it to be purchased or mined at fractional denominations called Sats. For example, it is possible to purchase Sats worth INR 100, in contrast to land or gold. If we look at the YoY return generated by Bitcoin in the last year, it is approximately 52%. In contrast, Gold has generated approximately 37% of return. At the same time, land & real estate owners received a return of between -3% - 29% based on locations across India. 

Similar numbers could be seen in the equities as well. Nifty 50, the Indian benchmark index, has returned approximately 6% in the last calendar year, marginally higher than the retail inflation rate in India. Considering these numbers, where does this leave the millions of retail investors in India? This is the gap that is being filled by DeFi, and Bitcoin is leading the charge with an accessible alternative that is proving to be profitable every passing year.

Bitcoin Over Traditional Investments?

While this is true that historically, Indians have always preferred physical assets, however, the trend is transforming. Young investors, especially genZ and millennials, are actively seeking investment opportunities in Bitcoin. According to the National Stock Exchange (NSE), over 40% of its investors are below 30 years old, while a massive 70% are below 40 years old. At the same time, Bitcoin has a high adoption rate in India, despite complexities regarding taxation. This highlights that Bitcoin has become one of the major wealth-creating assets in the world, and Indians must seriously contemplate diversifying their portfolios with this risk asset.

However, it will be a significant task to place BTC in the same row as conventional assets for Indians. For the majority of Indian investors, traditional investments like gold, land, and equity offer high market stability and trajectory. While the general trajectory remains higher in Bitcoin, the massive market dynamics are one of the major reasons why many Indians do not invest in this new-age asset. Similarly, Indians have a deep-rooted understanding of the aforementioned assets in their culture, and gaining this credibility will take time for Bitcoin. At the same time, the high taxation (30% on Capital Gains and 1% TDS) does not help BTC’s cause and must be revisited if India is to become Bitcoin-friendly.

The Indian government has shown openness and been forthcoming when it comes to considering Bitcoin for its citizens. The Indian government is already working on a bill for Bitcoin and other VDAs (Virtual Digital Assets). The country is also one of the major advocates for creating a global framework for Bitcoin and related VDAs, something India had also discussed at its G20 Presidency in 2023. 

Growth Expected

The adoption rates for Bitcoin among Indian investors are projected to increase in the coming years. However, it may not hold as much sway as conventional investment assets owing to a number of factors. However, since Bitcoin is uniquely positioned for even more value creation in the coming years, it is high time for Indian investors to give serious thought to their portfolios. Diversification remains one of the most basic strategies of investments, and it remains to be seen whether Indians will be applying it to BTC for targeted wealth creation in the coming years.

(The author is the co-founder & CEO of GoSats)

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