Bitcoin Boom Draws Record Number of Indian Investors According to Exchanges
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The earliest virtual investing in bitcoin in india can be traced to the s when a David Chaum, an American cryptographer came up with something called as e-cash which failed.
But the current crop of tokens are on a whole new level and scale. And whenever something is in vogue it very important to look at the bigger picture and the following is my exploration of it. Traditional fiat currencies are controlled by governments and central banks but cryptocurrencies like Bitcoin are decentralized and nobody controls them. They are also encrypted meaning the transactions and identities are truly anonymous.
The technology that underpins these currencies is called as Blockchain, which in itself is touted to be a revolution and is a topic of another post. My investing style has always been simple - invest where investing in bitcoin in india see value. Although the display of nostalgia and emotions are frowned upon by investors, one of my favorite and successful investments was in Hero Motors.
I had bought a few hundred shares at around Rs sometime in and I still hold them. The rationale was that a growing economy would enable Hero to grow as a business and create value for shareholders and they definitely investing in bitcoin in india. By this yardstick, it is very hard to take a call on investing in cryptocurrencies. Looking at the moves that have made in the past few years it is very hard to see the fundamental reasons.
Investing in cryptocurrencies is a whole new ball game. When you invest in stocks or bonds there are fair and transparent markets, regulations and participants. Cryptoassets, on the other hand, are decentralized and globally the regulations are patchy at best. When you invest in a stock of a company there is a paper trail and your shares are securely held in your demat account.
Meaning you alone are responsible for the safety of it. If your wallet, platform or an exchange is hacked there is no recourse to seek recompense. There are no investors protection funds, unlike capital markets and, hacks are common.
Uncoin the Bangalore based exchange was also subject to a hack in August of this year. You might say that this is changing with countries like Japan recognizing allowing Investing in bitcoin in india as a medium of payments, but that is not nearly enough is it? The dynamics you should consider when it comes to investing in this asset class are innumerable.
The advantage is that there is no regulation on ICOs or at least up until now. Contending with regulatory changes is one of the biggest risks when it comes to investing in cryptocurrencies.
The changing regulatory environment is not only limited to China, but a host of other countries such as the US, South Korea, Russia, Venezuela have put in new regulations or are in the process of formulating them. Here are some major regulatory changes recently. But in spite of all this Bitcoin has continued its upward march. Is this based on fundamentals? In a recent column on Project Syndicate Nobel winning economist Ken Rogoff made investing in bitcoin in india prescient argument.
For example here is a chart of Bitcoin and Ethereum the two biggest cryptocurrencies Bitcoin and Ethereum. This year to date chart is much scarier with very deep troughs and peaks.
Such mind-numbing moves are commonplace. Here is another comparing the performance of the top 3 altcoins or alternative coins. These are some mind numbing-moves. Cryptocurrencies are extremely volatile and are not for the faint hearted. Bitcoin still has a long way to go before it becomes as stable as fiat currencies. These moves reek of speculation and unaware investors who are lured by the promise of high returns can get caught flatfooted.
But it is not all doom for Bitcoins. Cryptocurrencies contain the potential to revolutionize modern finance but the questions will remain over the future of the current crop. Of coins and conmen Where are people chasing returns, there are scamsters to take advantage.
The-Ken on October 17th came out with article on crypto scams with a shocking description. Aroundpeople have put their money in crypto Ponzi schemes, and these fraudsters have siphoned off more than Rs 4, crore by fooling gullible people.
This story has played time and again throughout history. But It is hard not to sympathize with these people. The RBI had put out a circular in Feb which said. As such, any user, holder, investor, trader, etc. There are platforms like Zebpay, Uncoin etc in India through. Traders hoping to trade these cryptocurrencies will have wait longer because the spreads are huge on Indian exchanges.
At the time of writing, these were the spreads on Zebpay and Uncoin which display them on their homepages. Found this resource which visualized the crypto universe. For cypto enthusiasts here image. This is my take on cyptosyes its going to be a new asset class but may be 5 years from now fingers crossed. Now it looks same as dotcom bubble investing in bitcoin in india from trader point of view buy the hype investing in bitcoin in india the news.
Should you invest in Bitcoin or other cryptocurrencies in India? For the uninitiated here is the definition of a cryptocurrency A cryptocurrency is an encrypted decentralized peer to peer digital medium of exchange.
The advantage is that there is no regulation on ICOs or at least up until now Contending with regulatory changes is one of the biggest risks when it comes to investing in cryptocurrencies. Soth Korean financial regulators in September had discussed strengthening regulation of Bitcoin and other virtual currencies. Vladimir Putin earlier this month called for regulating cryptocurrencies. The Russian financial regulators are expected to announce regulations governing cryptocurrencies.
Looking at the charts of these cryptocurrencies one cannot help but think of a bubble. This pretty much sum up on bitcoin investing in bitcoin in india.
