As per reports, though the Reserve Bank of India has asked people to be wary of bitcoins and its usage, Indian bitcoin exchanges are witnessing a steady rise in the number of users every day. The number of downloads are also increasing continuously.Hesham Rehman
With the Government putting all kinds of efforts to make India a cashless economy, the digital cryptocurrency has caught the attention of many Indians, especially the youth. Since last year, many indigenous bitcoin exchanges in the country has reported a rise in bitcoin user base by upto 250 per cent. Why wouldn’t it, after all bitcoins has taken the world by storm witnessing a whopping 300 percent rise in value in just over a year time frame. The virtual currency’s value went through the roof also when Japan passed a law legalizing bitcoins as a viable payment method. The value of bitcoins is unlikely to come down given that there are limited number of bitcoins and every day more and more people are showing interest in investing in it.
On one hand, countries like Japan and Russia are legalizing the use of Bitcoins, India, on the other hand, being at the cynosure of digital revolution, is yet to officially recognize the virtual currency. However, since, bitcoins are actually computer codes that are digitally signed each time they move from one owner to the next, it is an immensely popular currency with most people- thanks to the anonymous nature of transactions it guarantees.
Initially, bitcoins were largely been seen as a quick fix way to make money, now however, it is emerging as a viable long term investment option. Many are considering the virtual currency as a way to hedge against future financial instability. People, especially the youth are considering bitcoins as a great investment option, even better than gold, primarily because Gold has incremental value as it is rare, is partly indestructible and has an industrial purpose. Bitcoin has the same characteristics, plus it is portable and has perfect divisibility. Also, bitcoins are immune to economic inflation and regulatory woes as it is not controlled by any Government or regulatory body.
After all, today, bitcoin is being considered to be the ‘gold of the 21st century’, or as some experts have advocated, a ‘digital gold’.
Investors had been looking for a viable investment tool for some time now. Buying and trading stocks or foreign currencies is a risky business with little room for making profits quickly. In such a scenario, bitcoins are proving to be an intriguing alternative. Similarly, cash investments today, is more popular than gold, other precious metals, and the stock market. However, it is not the best option given the fact that savings accounts sometimes result in more costs than earnings, depending on which region one lives in.
Real estate is another prominent investment option for people all across the world. Owning a property is owning an asset to guard against future financial instability. But, though real estate’s profit making potential is huge, bitcoins still reign supreme. There is a lot of confidence in the future of bitcoins but only time can testify if it is justified or not.
The good news is, the decrease in market volatility is providing the much needed impetus to the bitcoin capital market and its acceptance, the world over. And more mainstream acceptance means more participants and price increase trend. Such conditions are giving bitcoins a leading space as far as a long term investment is concerned. More and more people are now treating the crypto-currency as a long term investment option. In India though, there is still time for it to take off.
It must be noted that, though Bitcoin is not mainstream in India currently, the underlying technology behind it, the blockchain technology is gaining quite enough steam for several Indian banks. Last year an Indian bank announced that it has successfully executed transactions in international trade finance and remittances using blockchain technology.