The government should help small investors understand cryptocurrencies better

Warren Buffett and Bill Gates don’t like cryptocurrencies, but about 2 crore Indians seem to. This year, many Indians have been buying crypto, even though

The government should step in to help small investors understand cryptocurrencies better.

While bigwigs like Warren Buffett and Bill Gates have expressed their distaste for cryptocurrencies, about 2 crore Indians seem to be fans. This year, many Indians have been buying crypto, despite having to pay a 30% tax on earnings. People in both big cities and smaller towns, like Barbaka in Assam and Botad in Gujarat, are investing in these digital currencies. You might even know someone in your family or neighborhood who owns crypto! But is this a good thing?

Bitcoin, the most well-known cryptocurrency, is notorious for its wild price swings. Imagine buying it in January for ₹47,000, watching it shoot up to ₹71,000 in June, fall to ₹54,000 in September, and then jump past ₹1 lakh now. That's how unpredictable it is!

A recent report shows that many Indians aren’t buying the big-name cryptocurrencies like Bitcoin and Ethereum anymore. Instead, they’re putting money into “meme coins” and “gaming coins.” Meme coins are created as jokes or based on internet memes, but some people take them seriously. For example, Dogecoin, a meme coin that Elon Musk loves, was almost worthless for years. When Musk tweeted about it, its price shot up, but it’s still super risky.

Other meme coins, like Elongate and EMax, became popular because of celebrities like Logan Paul and Kim Kardashian. But the fame didn’t last. Kim was even fined ₹11 crore for promoting one without being honest about her payment for the ad.

The problem is, social media spreads these stories fast. Young people, hoping to get rich quickly, might borrow money to buy these risky coins. If the prices crash, they could lose everything.

While India’s central bank (RBI) wants to ban cryptocurrencies, another government agency, Sebi, wants to regulate them like the US does. The government needs to decide soon and give clear advice to small investors. Without proper rules, people could lose their hard-earned money on something as fragile as a meme.