''Crypto Assets Have Inverse Relationship With Economic Factors Like Inflation''

Crypto assets continue to derive value based on their utility as a safe and de-regulated financial token, said Mr Sumit Gupta, CEO, CoinDCX - India's leading cryptocurrency exchange

When compared to fiat currencies, crypto assets have an almost inverse relationship with macro-economic factors such as inflation growth, Mr Sumit Gupta, CEO and Co-Founder of CoinDCX told NDTV. ''Considering the fact that crypto-assets like bitcoin (BTC) are digital tokens that can be exchanged between two parties directly with low transaction fees, their value is currently influenced by the increasing adoption rate and burgeoning transaction volumes,'' said Mr Gupta, while discussing the factors that determine the movement of cryptocurrencies.  The comments from the industry leader come at a time when leading cryptocurrencies such as bitcoin and ethereum have witnessed heavy volatility in the last few months, registering hefty losses after China announced a ban on its financial and payment institutions from providing cryptocurrency services. As the digital currencies struggle to rebound, investors have again drawn concerns over the volatile nature of crypto assets, compared to the predictable nature of traditional currencies.  Traditional currencies usually react to the macro-economic developments and foreign exchange interventions taken by central banks. However, Mr Gupta describes that crypto assets remain largely ''unperturbed'' by the measures with no control exerted by central banks and continue to derive value based on their utility as a safe, secure, and de-regulated financial token.