Bitcoin: A Complete No-No

Posted by Himani Mittal in Business and Economy
January 12, 2018

We all are mesmerized by the shine of Bitcoin. Perhaps, even more than that of gold or platinum. Every other person is talking about it, although more than half of our population does not properly know what Bitcoins are. We are just following the hype.

From the last weeks of November, we have witnessed a major shift in the range of bitcoin from $6,000 (approx) to $16,000 (approx). You can see in the graph, the extensive change in the price of bitcoin from past one year. One of the most significant shifts was seen when Japan announced the consideration of the legality of Bitcoin in Japan.

But before going to Google and typing Bitcoin.com and investing your money into it. Consider these points in your mind:

Investment = Secure Future

You cannot depend on Bitcoin as a long-term investment. Your future is not secure with investment in Bitcoins, as there is neither security nor surety of its survival in the long term. Your investment is much more secure in gold, the share market and fixed deposits, rather than Bitcoins.

Accountability

In India, RBI regulates all monetary transactions. But who is accountable for any fraud or faulty transaction in Bitcoin network? We don’t even know who the original creator of Bitcoin is. Even the alleged founder ‘Satoshi Nakamoto’ is still an anonymous person. Now, who guarantees fair trade and transactions?

No Stability In Price

If we macro compare the graph for last few months, then you can see there is sharp instability in the price. 2018 is not a good time to buy Bitcoins. We all know the old saying, “what goes up must come down”. The high prices of Bitcoins will surely come down. So if you buy Bitcoins now, then you are taking a huge risk with your hard-earned money. Because when you want to sell your investment in future, then you will not get enough buyers or a worthy deal.

Security

Bitcoin transfers directly from peer to peer. In case of faulty transactions or wrong dealings, you will never get your money back as no authority is regulating all the transactions. If your money is gone, it is gone forever until the other person is kind enough to return it.

Credibility

It is your hard earned money. Why do you want to take a risk by investing in Bitcoins by just following the hype? Also, it has become popular only now. You have to admit, most didn’t even know about Bitcoins in last few years.

What Famous Business Tycoons Have To Say About Bitcoins:

According to Warren Buffet, cryptocurrencies are headed for trouble. “We’ll never have a position in them,” Buffett, chairman and CEO of Berkshire Hathaway, told CNBC’s “Squawk Box”  “I can say with almost certainty that they will come to a bad ending.”

Rakesh Jhunjhunwala, an Indian Investor and Trader says:

 

I would like to conclude by saying that if you want to invest your money, then do not follow the crowd. Invest in something secure. Let bitcoins become a trustworthy source. Let it prove its mettle. Why do you want to take a risk with your money?