Things are changing for NFTs and the crypto world in general. The recent announcement that tax now applies to all crypto assets sold has motivated many digital currency enthusiasts to look for new technologies and plans that are going to best serve their interests.
India is on the list of countries that are looking to intertwine crypto trading with the central economy in an effort to enhance international activity and strengthen the country as a whole. The question is, does it have the potential to become the next major international NFT hub? We don’t know, but here is what the experts have to say about it.
India’s Entrepreneurial Spirit Could Mean Success
Something Indian is world-famous for is entrepreneurial drive. The country’s Prime Minister, Narendra Modi, has often praised the ingenuity and determination of the millions of bright young minds that keep India at the front of the race when it comes to sheer innovation and creativity.
As we well know, innovation and creativity are practically the foundation blocks of the entire concept of NFTs. It seems almost inevitable that India is bound to make some big waves when it comes to cryptosystems and NFT blockchains. What remains to be seen is whether or not the mainstream public embraces it.
The Technology Potential Is There
Think of it this way: India’s startup culture and ecosystem is the third-largest in the world. It introduces roughly 50,000 new startups every year. Almost 20% of all Indian startup companies are technology-based, meaning 10,000 new ideas come into play annually. Even if only five percent succeed (half of the statistical average), that is still 500 new and exciting technology businesses each year.
That means that the development rate of Indian technology- which is becoming increasingly block-chain-focused- is moving at an impressive speed. There is really very little holding the country back from some major breakthroughs in NFT and crypto technology.
High Tax Rates Could Be an Obstacle, but It Could Also Be a Blessing in Disguise
It all sounds great so far, so what is standing in the way? The dreaded T-word, that’s what. The Indian Government classes NFT and crypto coins as virtual digital assets- not currencies, so all sales carry a 30% tax. It could be off-putting to some, but others feel it is a good thing.
India intends to introduce a digital currency in the next financial year. Combined with tax income from the trading of NFTs and crypto, this could well set India up to become one of the leading powers in the digital financial revolution. It also sets the nation near the front of the race to make cryptocurrency legal tender.
Supply Far Outweighs Demand, For Now
There is no shortage of digital artistic talent in India. Many nationals, including multiple Bollywood icons, have launched collections and are passionate about minting NFTs. The problem until now is that their countrymen are not interested in buying.
Historically, India has not been a country that collects art. Even traditional art collecting never saw much success here, so there is doubt that India has the right market for digital art to do well.
Gamers Could Be the Difference
A common belief is that NFTs with a function is the key to cracking the Indian market. Luckily, it happens to be home to one of the world’s largest communities of gamers- to the tune of around 450 million people.
Considering this market grew by 170% between 2020 and 2021, it stands to reason that NFT gaming could be the answer for establishing interest. Statistically, India loves play-to-win gaming a lot more than the US, so there is raw potential for something big to come of it.
There are conflicting opinions about how well-positioned India is to become the next hub for NFT trading. On one side, there is no doubt that the nation’s infallible entrepreneurial drive and excellence in the technology industry are perfectly poised to build a seriously impressive blockchain-based economy.
However, is there enough buying interest to outweigh the high taxation? Are people going to steer away from it, or does the additional clarification make the industry more appealing to investors?
One thing is for sure- whatever India comes up with is sure to be exciting for NFT lovers around the globe.