Bernstein Urges India to Recognize Bitcoin as Strategic Asset

As a seasoned crypto investor who has weathered multiple market cycles and witnessed the meteoric rise of Bitcoin from a niche curiosity to a global phenomenon, I wholeheartedly concur with Bernstein’s perspective. India, with its vast potential and a burgeoning tech-savvy population, should seize this opportunity to embrace Bitcoin as a strategic asset, not just for economic growth but also as a means of securing our digital future.


Financial company Bernstein advises India to consider Bitcoin as a vital long-term asset. Given Bitcoin’s current global worth of approximately $1.5 trillion and consistent annual returns of around 50% over the past four years, Bernstein suggests that India should not disregard this opportunity.

The firm argues that India’s regulators need to create a policy that treats Bitcoin not just as a “private currency” but as a valuable “store of value” in times of global economic uncertainty.

Bernstein Urges India to Recognize Bitcoin as Strategic Asset

As a forward-thinking crypto investor, I wholeheartedly agree with Bernstein’s viewpoint that Indian financial institutions should seize this opportunity to provide secure and government-approved avenues for Bitcoin investment. The current landscape of unregulated cryptocurrency exchanges poses significant risks for investors like myself, potentially leading to the loss of hard-earned funds. I believe that Indian companies can carve out a niche by spearheading the creation of safer and more reliable investment options in the crypto sphere.

The firm wonders if there should be a way for Indian retail and institutional investors to invest in regulated cryptocurrency products without the risk of losing control over their assets.

In the report, Bernstein emphasizes financial maneuvers related to Bitcoin by the United States, which is experiencing renewed interest. With President-elect Donald Trump, who is crypto-friendly and has ambitious plans to make the U.S. a leading player in Bitcoin, there’s a possibility that the U.S. may soon consider Bitcoin as a strategic resource. Bernstein suggests that, given its position as the world’s fifth-largest economy, India should seize the opportunity to gain advantages from Bitcoin just as well.

As an analyst, I am observing that the Indian government is directing its attention towards Central Bank Digital Currencies (CBDCs), while categorizing Bitcoin as a “private crypto.” According to Bernstein’s perspective, this approach may be restricting Bitcoin’s potential. Our firm believes that CBDC could certainly bolster India’s digital economy, but it falls short of replicating the role Bitcoin plays as a digital equivalent of gold.

Bernstein notes that over the past ten years, India has boosted its gold reserves substantially. Similarly, India might amplify its holdings in Bitcoin, bypassing the need for foreign storage solutions for gold.

Worldwide, firms such as Blackrock and Fidelity have introduced Bitcoin Exchange-Traded Funds (ETFs), accumulating approximately $55 billion in assets within ten months of their debut. Analysts like Bernstein advise Indian policymakers to act swiftly in establishing a Bitcoin policy.

Bernstein Urges India to Recognize Bitcoin as Strategic Asset

According to Bernstein, the development of a crypto policy is intricate and requires building agreement over a period of time; however, he emphasized that the matter concerning Bitcoin’s policy holds immediate significance and is crucial for our country’s strategic interests.

Additionally, the company endorses collaborations between Indian technology and financial institutions and regulatory bodies, enabling these entities to provide Bitcoin services through authorized channels. This approach ensures Indian investors’ protection from potential risks such as hacking and fraud, offering a secure method for investment in Bitcoin, while simultaneously allowing India to stay abreast of international trends.

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2024-11-12 19:48