Bitcoin buzz has taken over the world. India is no different to recognise the digital currency as a new asset class. Before deciding to buy Bitcoin in India, you must take into consideration a few things.
Created in 2009, Bitcoin is the second most googled global news in 2017. Let’s check some parameters you need to keep in mind to invest large sums of money in Bitcoins.
Reasons to buy Bitcoin in India
Increasing interest among finance industry
Major investors have started to take Bitcoin seriously. The tech-savvy generation has joined a growing number of mainstream investors and entrepreneurs who see crypto currencies as a legitimate asset class such as stocks, bonds, or commodities. In 2017, the reckoned Andreessen Horowitz and Sequoia Capital have put millions of dollars into digital currency funds.
Bitcoin futures launched at largest futures exchanges
Some of the world’s largest futures exchanges, Cboe Futures Exchange and Chicago Mercantile Exchange (CME), have launched their Bitcoin futures contracts recently. The Bitcoin futures have had a good first week of trading. The most popular futures contract at the Chicago Mercantile Exchange (CME), which expires in January, increased by 17.1 percent within the first week.
The next “gold”
The USP of gold for investors is that the authorities do not control the value. For the same reason, Bitcoin is dubbed “the next gold.” Even if a country’s currency depreciates, the value of the gold will remain. Some of the industry insiders believe that gold bugs will become bitcoin bugs in the near future.
Reasons to not buy Bitcoin in India
The risk involved is high as the prices are extremely volatile. The finance industry experts are sceptical and believe that people are just investing on the basis of imperfect information and are joined by the herd of speculators. The investors are prone to significant crashes. Bitcoin might get gains of over $5000 in a short span but can also tumble back the next the moment.
Bitcoin only exists on computers. It is decentralized, digital or virtual currency which is not governed and does not have any physical appearance. These currencies are not backed by governments or any banks for that matter. The absence of a regulation or authority makes legal recourse non-existent in such an investment.
Bitcoin has a high risk of fraud. There is a great deal of misinformation and lack of clarity around the crypto currencies. It is more likely to be exploited by fraudsters promising ‘guaranteed high returns’ to people.
Related story: Crypto currencies that can make you rich in 2018
Where can you buy Bitcoin in India?
You can buy Bitcoin online by using an online exchange. Some of the notable Indian exchanges dealing in Bitcoin are Zebpay, Unocoin, Coinsecure, BuyUCoin and LocalBitcoins.