The US Senate passed the Genius Act, to regulate specifically stablecoins, marking a new phase for crypto eco-system. It adds clarity and confidence in cryptos. Cryptos started as competition to fiat currency but have now evolved into a widely held asset class. The evolution has been influenced by institutional moves, regularity recognition and investor behavior.
In 2020, MicroStrategy, a listed company, held Bitcoin on its balance sheet as a treasury asset. This was the first listed company to do so. Square and Mass Mutual followed suit. By 2021, large investors evinced interest. The Securities and Exchange Commission approved ETFs (exchange-traded funds) in 2024. It welcomed traditional institutions and retail investors to access Bitcoin through regulated channels, on the lines of gold ETFs.
In 2025, ETFs drive inflows. Global banks have started developing structured products tied to Bitcoin. There is murmur about Bitcoin reserves.
There is a shift in policy — from restriction to integration. Between 2018-19, regulatory pushback was a patchwork. In 2020, Bitcoin was treated as properly attracting capital gains.
In 2021, El Salvador made Bitcoin legal tender (since then revoked). India introduced a capital gains tax on cryptos. It tantamounted to recognition without endorsement. In 2025, President Trump supported stablecoin legislation. India has prepared a consultation paper.
In 2018, there was crypto winter because of subdued investor sentiment. By 2020, investor started to treat Bitcoin as a store of value, on the lines of digital gold. It is also a hedge against inflation.
The distribution mechanism of exchanges improved between 2022 and 2023. In 2024 and 2025, the spot ETFs became normal. Bitcoin entered mainstream portfolios. Bitcoin is no longer purely speculative. It is treated as a long duration asset.
India permits ownership and trading of Bitcoin. RBI is skeptical about systemic risks. The taxes introduced have become deterrents. India can come out with a consultation paper in 2025. Industry favours prudence, rather than prohibition. Informally, a Bitcoin reserve is proposed in India. India is cautious and is in the wait and watch mode.
Gold has a history of last 5000 years to maintain its value. Bitcoin requires a supportive infrastructure. There is a physical constraint on gold supply whereas Bitcoins scarcity depends entirely on code. Gold has industrial application and decorative value. To be a true store of value, it needs to lower its volatility.
Bitcoin adoption could be dependent on business cycles. It can reverse rapidly. Bitcoin’s cryptographic security could be challenged by advances in quantum computing. Central-bank digital currencies could reduce demand for decentralized cryptos. Extreme volatility does not make cryptos dependable.
It is to be seen how Bitcoin fits into broader financial system. Bitcoin may not replace fiat currency but it is here to stay.
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