Business Mantra News
Bitcoin has rocketed to new all times high this week and investors have not seen such high profit within other investment, that too in such a short span of time, many investors keen to invest in Bitcoin. Some people jump to invest just for the sake of short term gains without going into the pro & con consequences of their investment.
Is it safe to invest?
Prima facie answer to this question is no. As one should not invest blindly in something if one don’t understand it well. New investors must understand the technology and mathematics of this crypto-currency first before making investments.
Bitcoin is a crypto-currency in digital form. Last week, Bitcoin surpassed 17,000 US dollars (Rs.11.50 Lakhs) and total market value of Bitcoin raised up-to Rs.18.20 Crores. It is not certain that this speculative rise will continue, sudden fall may come in this virtual currency hence, if one put his money in Bitcoin he will make a fortune. It is expected that Bitcoin is just like a bubble which could be burst soon.
Reserve Bank of India has repeatedly warned that it would not be safe to invest in Bitcoins as it is highly volatile crypto-currency.
As Bitcoin is virtual currency, hence everyone is not acquainted well with the technicalities of trading in this currency. One will not be able to buy and sale it easily. Due to lack of knowledge, one could be looted and some dodgy people might take advantage.
No legal regulatory authority is controlling this currency. Neither RBI nor any other global or international monetary authority has issued any license or legal authorization to this currency.
As, there is no centralized system of data base of crypto currency and due to lack of Government control, terrorists and extortionists are also using the Bitcoins to their advantage.
Bitcoin is a digital currency, investors may have risks of loss of e-wallets, loss of password which would lead to permanent loss of virtual currency and one has to suffer heavy monetary loss. One cannot claim back his currency due to no authorization of the crypto currency by any regulatory authority.
In the light of above facts, it would not be advisable to deal or invest in Bitcoins due to high volatility of this currency. Still, if you wanted to invest in Bitcoins, then first do research and gain all the information about the currency and go for it.