As the value of the crypto currency keeps surging at a staggering rate, a lot has been said about Bitcoin, of late. Millions have invested in it already, with many more considering it as an investment option.
The value of one Bitcoin surged as high as $19,535 – more than 12 lakh INR. The crypto has seen 19-fold increase since January, up from under $1,000 at the start of the year. While the frenzy continues, is it right to invest in the Bitcoin in 2018? Let’s start with what we know already.
The value proposition of the digital currency is what makes it an attractive trade-off for investors. It enables instant transactions between individuals or entities anywhere in the world. The procedure is simple, transparent and hassle-free. It eliminates the role of banks or traditional setups and has advantages over traditional setups.
The demand for the ICOs, only way to buy into most crypto currencies, has fuelled the market. It is still going on, although not on such a grand scale.
There is a shift in trading activity; Bitcoin has made it to the reputed investment exchanges. It has recently made its debut at the big stage with the launch of futures at the Cboe and CME exchange.
The crypto currency is now being seen as a legitimate asset class, at par with stocks, bonds, or commodities. Andreessen Horowitz and Sequoia Capital put millions of dollars into digital currency funds earlier this year. The Cboe and Chicago Mercantile Exchange (CME), two of the largest futures exchanges, have launched their Bitcoin futures contracts. The investors have welcomed Bitcoin futures with good responses in the first week of trading.
The digital currency is outside the jurisdiction of governments and central banks. For this reason, it is dubbed “the next gold.” The state of the economy has nothing or very little to do with the price or value of crypto currencies. As per the industry insiders, gold investors will soon become Bitcoin investors.
The digital currency only exists on computers. There is no physical appearance of the currency. In short, it is not regulated. For that matter, legal recourse is non-existent.
The crypto assets are extremely volatile. Majority of people have been investing on the basis of inadequate information and just joining the herd of speculators. If you decide to invest on it, you might get incredible gains in a short time although you could lose a good sum in a short time too.
Bitcoin is on the brink of milestone $20,000 but should you still invest in it now?