India has the second-highest number of crypto users, followed by Pakistan.

 The rise in popularity of bitcoin appears to be unstoppable. Now, research reveals that Indian investors have adopted cryptocurrencies as well. According to a new report by Chainanalysis, India's cryptocurrency explosion has resulted in a massive increase in the number of users. According to the research, India had the world's second-highest number of cryptocurrency users in 2021. India is second only to Vietnam in terms of bitcoin users, according to the survey, which was published in 2021.

Aside from the increase in cryptocurrency users, the industry research firm's analysis showed that the country's crypto market increased by 641 percent last year. While Pakistan ranks third in terms of cryptocurrency users after Vietnam and India, it has had the highest growth, with a 711 percent increase.

In addition, the research offered plausible reasons for the increase in the number of users based on industry experts' remarks. For example, Joel John, Principal of LedgerPrime, believes that the simplicity with which crypto investments may be made has inspired more people to get involved. "Investing in stocks in India is a long, unpleasant process that necessitates the signing of numerous documents. It usually takes three to four days. "It takes less than an hour to invest in cryptocurrency," Joel John was quoted as saying.

"Tons of Indian developers, fund analysts, and independent freelancers working for abroad clients have started wanting to be paid in cryptocurrencies," said Krishna Sriram, Managing Director of Quantstamp, according to the story.

The growth in bitcoin users comes as Finance Minister Nirmala Sitharaman has stated that the government will soon provide clarity on cryptocurrency formalisation. Virtual digital assets will be taxed, according to the government's budget for 2022-23.

Between July 2020 and June 2021, Chainalysis' 2021 Global Crypto Acceptance Index assessed 20 nations to determine the amount of cryptocurrency adoption and usage by individuals.

According to Chainalysis' ranking methodology, countries are ranked based on their P2P trade volume, which is weighted to favour countries with lower purchasing power parity (PPP) per capita and fewer internet users, in order to highlight countries where residents are investing a larger portion of their overall wealth in P2P cryptocurrency transactions.

This is why, when their P2P trade volume weighted for internet-using population fell drastically during the year, both China and the United States dropped in the worldwide adoption index ranks. It also reflects the growing 'professionalisation' and 'institutionalisation' of cryptocurrency trading in the United States, as well as continuous government crackdowns on cryptocurrency trading in China.

The United States and China were ranked eighth and thirteenth, respectively. Both countries' ranks plummeted as the volume of P2P trading weighted for internet users dropped dramatically.

The majority of the top 20 countries in the survey were developing countries such as Kenya, India, Nigeria, and Tanzania. When adjusted for purchasing power parity (PPP) per capita and internet-using population, these countries have massive transaction volumes on P2P networks. Because they do not have access to centralised exchanges, residents use peer-to-peer cryptocurrency exchanges as their major on-ramp into cryptocurrencies.