Bitcoin, the largest crypto, has outrun the run up in price in gold. And the recent run up is owed to a multiple of reasons such as mainstream acceptance, US Presidential elections.
Now on Tuesday, it hit a price above $19000, just shy of hitting the all time high of just under $20000. Though Covid 19 had a different bearing on different asset classes, bitcoin remained affected as the main reason impacting is the forces of demand and supply plus is an outcome of blockchain technology, which is one of the safest sources of digital money security.
So as per the Chief Marketing Officer at ZebPay, bitcoin going ahead with some corrections can easily hit Rs. 1 crore by 2030, currently being trading over Rs. 14 lakh in Indian currency. And so, it is an investment for the long term.
On a year to date basis, bitcoin has sharply rallied by as much as 160 percent primarily owing to the demand for risk-on investment products amid uncertain investment scenario as also hunger for assets that are not impacted by inflation.
And short term hiccups can never be rightfully estimated so it is better to refrain from this practice. "With respect to every previous run ups in Bitcoin and major top cryptocurrencies, we also witness a healthy correction and strong consolidation in the market. And I believe this time too we will witness a similar trend to continue in the short term," says Sumit Gupta, Co-founder and CEO, CoinDCX.
And so hence investment via the SIP route is advised in Bitcoin with no offloading during short term volatility.
"There is one smart investment strategy: cost averaging for the long term. Buy small amounts of bitcoin daily or weekly, hold it long-term through the ups and downs, and stick to your buying plan for years, not months. It's like an SIP for bitcoin. No one knows how far this rally will go but at some point there is always a correction. Anyone who pretends to know more than this is fooling himself or others," says Vikram Rangala.