Early-December Bitcoin touched the $20,000 mark on many exchanges. It’s currently trading at around $15,000. In just 10 months of 2017, this cryptocurrency grew by 700 percent. Incredible.
Needless to say, this turned many heads, even giving Bitcoins the mainstream spotlight on leading news publications, from Telegraph to NY Times.
Now many people are left asking—how to invest in Bitcoin in India. Are you on the same boat?
If you’re looking to plug in your own hard earned money in this cryptocurrency market, it is important that you don’t get carried away in all the hype and take time to understand every aspect involved.
Yes, Bitcoins have turned number of individuals into millionaires. And many people are making big money off it. Still, is it a safe investment avenue? Should you make this rather risky investment in an asset that looks very uncertain and compares the biggest bubbles like Dutch tulip mania?
Should You Choose Bitcoin over Stock Market?
A quick and blunt answer is NO!
Here’s a thing—all those talks of Bitcoin being an asset bubble isn’t coming from skeptics or publications that are looking to sensationalize the topic. Some of the industry’s leading names have spoken against the unnecessary hullabaloo of Bitcoin.
Jamie Dimon, CEO of JP Morgan, has called Bitcoin a ‘fraud’ that will eventually blow up. Nobel Prize winners Joseph Stiglitz and Robert J. Shiller have criticized this virtual currency, asking for it to be out-lawed because it offers no “socially useful function”.
Many other representatives of major financial corporations have opined similarly, arguing against Bitcoin.
Of course, their opinions and analysis shouldn’t be taken by face value. Because, let’s admit it, as many people are on this side of the rope, just as many exist on the other side, going gaga over this asset.
But when looked at it on the technical charts, one cannot help but feel extremely skeptic about the unusual and uncommon growth an asset like Bitcoin that has no intrinsic value whatsoever. To that, the market is unregulated and functions largely on hype and puffs. A bad news turns it upside down with exceptional dips and corrections every so often that has made panic selling a common phenomenon and a good playground for large whales.
Money spent in Bitcoin is always exposed to risk. To that, the risk of cryptocurrencies getting banned by the governments always lurks high. If things go north, which many believe it will, you could lose all your money.
So, why invest your money in such high-risk, high-reward asset when you have the option of low-risk, high-reward asset?!
Stock Market is a Better Long-Term Investment Avenue
With history as its witness, stock market has long been a complete hero of millions of investors. Over the course, it has written countless millionaire stories. And most importantly, relatively, the risk involved is much less than that of Bitcoin, which you can be further put down by following the right trading strategies.
To that, good stock market trading app can aid your case even more by providing you immensely helpful resources and advanced power trading course. Bitcoin market, on the other hand, still at nascent stage, does not provide so much of growth opportunity.
So here are few conclusions:
- Behind the glam of Bitcoin lies its grim image for the investors who can lose all
- NEVER invest money in Bitcoin that you can use to holiday
- Do you understand Bitcoin market properly to trade better and leverage new opportunities? Likely not!
- Stock market can offer you a reliable source of return even on the long term at much less risk. So, why Bitcoin, really?
Make your investment decision very carefully. It matters your hard-earned money.