So, is it the right time to invest in Bitcoins? Here are seven reasons why Read more Extreme volatility Investing in cryptocurrencies involves very high risk, as prices have been extremely volatile.
We’re Entering a Post-Legal-Tender Age, Says Bitcoin Foundation Co-Founder Jon Matonis
Many experts are sceptical about Bitcoin as an investment primarily because there is nothing for them to analyse. People are therefore investing with imperfect information and joining the herd of speculators. This might lead to formation of a bubble that will eventually burst and cause widespread losses. In olden days, highly-priced metals like gold, silver, etc.
Someone is going to get killed. So what should you do? Read more An unregulated space Unlike other investment avenues, cryptocurrencies are not regulated by government entities or banks. Right now, Bitcoin is a bit of both. You’ll find services, both online and offline, that are willing to accept payments in Bitcoins. It’s also an easy way to pay freelancers in other countries, because it takes away an incredible amount of paperwork in that scenario.
But as we mentioned, the value of Bitcoin has only been headed up.
7 reasons why you should not invest in Bitcoins, cryptocurrencies
Although the amount you’ll have to pay to buy a Bitcoin BTC today surges wildly, on a whole, Bitcoin has been trending upwards and right now, on the Zebpay exchange, 1 BTC is selling for Rs. For comparison, this time last year 1 BTC was around Rs. Although initially several government bodies had their concerns with the usage of Bitcoin, currently the transactions are not illegal in India. Furthermore, we are awaiting the final stand of the government on Bitcoin transactions.
Bitcoins is not illegal as per existing laws in India, it is just not yet regulated. Chris Burniske, who formerly led cryptoassets for investment manager ARK Invest tweeted data showing that India now accounts for 10 percent of all Bitcoin transactions. The US and Japan still remain the biggest holders of Bitcoin right now but Indian investment is growing fast. Not everyone is an optimist though. Yale economics professor Robert Shiller, who won a Nobel prize for his work on bubbles and wrote a book titled Irrational Exuberance, which is on speculative manias, told Quartz that Bitcoin is the “best example right now” of irrational exuberance, and a speculative bubble.