Bitcoin Price Has Surged To Rs 3.5 Lakhs; Should You Be Investing In It?

The bitcoins have surged high in price and with high inherent risk you need to exercise extreme caution.

Updated: Friday, October 20, 2017, 12:37 [IST]

Bitcoins have gained in popularity with as many 1.2 million Indians already investing in it. it. The post-demonetisation period saw an even higher interest in the cryptocurrency which has been making huge volatility bouts up from Rs. 60,000 in January 2016 to Rs. 3,55,196 in value today.

Bitcoin Price Has Surged To Rs 3.5 Lakhs; Should You Be Investing In It?

In the recent past in the month of September, the value of the underlying cryptocurrency dropped in value by some amount. And of the several other assets, the daily volume in bitcoins or BTC is many times higher in comparison to most traded gold ETFs. The market cap for bitcoins market is set to take another hit if current investment in the asset class in dollar terms increases by a meagre 1%.

Also, given the uncertainties in the equity market, investors can also take their dig in the new instrument as an alternative to gold investment.

Undoubtedly, the price at which bitcoin is being offered is very high. Also bitcoin prices have rallied and hence there maybe limited room on the upisde. Also, if interest rates in the US rise, investors who did not have much of an option during a low interest rate regime, might move money back from bitcoins to government bonds. Another thing worth noting is that in some countries it is not encouraged and you need to know the law. There is no sound fundamental basis on which you can analyze bictoins, unlike shares and stocks. So, be careful before you take the plunge.

If you are willing to take a high risk and have followed the guidelines for safe investing, then proper and dedicated channels such as the bitcoin wallets can be opted for. Also there are companies who allow to make payment for your bitcoin purchase via credit card.

Know how safely can you invest in BTC, here.

Goodreturns.in