Why Gen Z Investors Are Choosing Bitcoin For Their Diwali Dhanteras Portfolios?

Diwali is a time when most Indians start fresh investments as a sign of prosperity. While a few decades ago, physical gold was the go-to investment choice, we have seen a significant change in how Indians view investments. Equities were a popular choice of investment until a couple of years back, but now, Gen Z, who make up a large chunk of the Indian investing community, are looking at Bitcoin and other crypto for their Dhanteras Portfolio.

This trend is not a surprise. Over the years, household income flowing into traditional assets like FDs, gold, and insurance has been falling. Backing this shift, industry experts estimate that the demand for ornaments is likely to drop by as much as 27% from a year ago in volume terms during the three-week buying period. Let's understand why such a shift is taking place.

Increasing Risk Appetite

As per Mr Edul Patel, CEO of Mudrex, while gold prices have risen 55% since the last Dhanteras, Bitcoin has outperformed with average annual returns of over 152% since 2010.

Numbers like these help explain why a growing share of festive investors are now allocating a portion of their Dhanteras budget to crypto instead of physical gold.

"Gen Z investors are willing to take more risk in order to generate a higher return, considering the longer time horizon they have in hand," said Mr Edul Patel, CEO of Mudrex.

From Tradition to Technology

The idea of investing during Diwali is deeply cultural, but the method is changing. The average Indian household spends around Rs 16,500 during the festive season, and Gen Z investors are increasingly using this budget to accumulate digital assets. They see Bitcoin as "digital gold", an asset that combines cultural symbolism with financial opportunity.

"This generation is also investing smarter. Most prefer to allocate 3-5% of their total portfolios to crypto, adopting a disciplined "buy and hold" approach rather than chasing quick profits. They're using mobile-first investment platforms that offer recurring investment plans and even crypto gifting options, which are modern versions of the age-old Diwali gold coin," commented Mr Edul Patel.

Evolving Regulatory Clarity on Crypto

All over the world, countries like Singapore and the UAE have already introduced clear frameworks to support responsible crypto investing. India is also becoming more accepting of crypto now, compared to a few years ago.

"Recently, the use of crypto in the broader economy was acknowledged by the honorable Finance Minister, giving it greater legitimacy. This positive movement in the government's stance has made crypto more attractive to investors," added Mr Edul Patel.

With a balanced and forward-looking regulatory approach, significant potential could be unlocked for the wider financial ecosystem.

Road Ahead

What we're witnessing today is more than just a shift from gold to Bitcoin. It's the evolution of prosperity itself, from tangible wealth to digital value. As regulatory clarity improves and awareness deepens, Bitcoin may well become as integral to Diwali portfolios as gold once was, not replacing tradition, but adapting it for a new digital India.

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