MUMBAI: The recent decline in Bitcoin prices should not rattle investors in India as its growing acceptance as an investment instrument foretells relevant local regulations that would provide a legal framework to the practice of trading in the cryptocurrency.
“New regulations may soon come up. The rising global acceptance of the blockchain technology by global financial institutions and government agencies has helped gain investor confidence,” said Praveenkumar Vijayakumar, CEO and Chairman at Belfrics Global. “Several government agencies are working on the evolution of blockchain and cryptocurrencies.”
Investments in the digital currency have been rewarding for investors, although the valuation slipped recently after Beijing regulators forced the closure of BTC China, one of the world's biggest exchanges for the Bitcoins. Otherwise, returns have quadrupled this year. The bitcoin-rupee swap rate is now trading around Rs 2.51 lakh, about four times higher than the December-end level of Rs 64,000, dealers said.
A Bitcoin is a digital currency created and held electronically. It is not printed or minted but produced by technocrats globally.
The market is now looking for central bank regulations on Bitcoins. Critics of the instrument point to inherent risk factors that may erode the investment value significantly.
Last week, the swap value dropped to Rs 2.2 lakh per Bitcoin from Rs 3.44 lakh beginning September. JPMorgan Chase CEO Jamie Dimon’s criticism of the crypto currency further dented the instrument’s price.
Yet, investors and traders remain enthusiastic. “In spite of China’s recent steps, Bitcoin has shown that it is a truly global asset and individual countries are not having influence over its price and sentiment,” said Sandeep Goenka, Co-founder, Zebpay. “We are optimistic that the government will realise the potential of this technology to make India a Global Fintech hub.”
http://economictimes.indiatimes.com/markets/forex/heres-how-bitcoin-can-reward-you/articleshow/60785692.cms
Topic: [2017-09-21] Here's how bitcoin can reward you! (Read 3893 times)
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