Not just corporates but financial institutions are selling gold and buying bitcoin, which has built confidence in the minds of the investors.
Investing in Bitcoin can seem complicated, but it is much easier when you break it down into steps. Buying Bitcoin is getting easier by the day and the legitimacy of the exchanges and wallets is growing as well. Key Takeaways The value of Bitcoin is derived from its adoption as a store of value and payment system, as well as its finite supply and decreasing inflation. While it is nearly impossible for Bitcoin itself to be hacked, it is possible for your wallet or exchange account to be compromised. This is why practicing proper storage and security measures is imperative.
Also, large businesses like Paypal now allow its customers to access crypto. Regulatory concerns are turning favourable in different parts of the world.
Cryptocurrencies like Bitcoin are the future and will play an integral part in the dynamics of world finance, believe the experts. They expect bitcoins to cross 1 trillion market cap soon.
And Fidelity, blackrock, and others which manager trillions in assets are bullish on bitcoin.
With additional institutional adoption we see bitcoin easily to cross the 1 trillion market cap which is currently sub billion.
Should you invest in Bitcoins?
Should you invest in it? So, should you invest? You need to consider a number of factors before investing — Bitcoin's price has always been volatile, and there is no clear explanation for its current rally. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualised an accounting system in the aftermath of the financial crisis. The rally to these levels, which has sustained over the last four months, has also seen various stakeholders taking steps towards legitimising the cryptocurrency.
Evaluate your risk appetite and choose investment options wisely, say investment experts. Prices of Bitcoin have been extremely volatile. There is not enough data for experts to analyse them, so people are investing with imperfect information and joining the herd of speculators," says Neeraj Singh, a registered investment advisor.
Some experts say getting into it early would be beneficial for Indians. Experts suggest to invest in a disciplined manner just like SIP or systematic investment plan in mutual funds to reduce the risk of timing the entry in the bitcoins. But overall to protect wealth and to ensure the value of their money stays and does not depreciate a bitcoin exposure is bitcoin money investment must," says Gaurav Dahake.
Investment advisors caution investors not to get swayed by the fabulous returns. They say, bitcoins are highly risky and not easy to understand. Join Mint channel in your Telegram and stay updated with the latest business news.