This year, the price of bitcoin has increased by 1000 per cent. So if you also want to invest in seeing the brightness of bitcoin, then you should know these 10 things about this virtual currency.
1. Huge Fluctuations in Prices
Investing in bitcoin is very risky because the volatility in this virtual currency is very high. Due to lack of regulation, there is a lot of uproar. At the beginning of this year, the cost of a bitcoin was around $1000. On November 29, the cost of a bitcoin went beyond $11,000. On December 1, when the price of a bitcoin fell to $9540 (about 6.15 lakh) That is, in just 2 days, the decline of nearly 20% has come down.
2. No Regulators Till Now
There are no regulators yet to monitor bitcoin or other cryptosystems. Neither is the government's control over it nor does the Reserve Bank of India. Apart from this, SEBI (Indian Securities and Exchange Board) also has no control over it. That is, if you buy bitcoins from bitcoin exchanges such as Zebpay, Unocoin and Coinsecure and there is no fuss with you then you may have a big loss. No one will help you in this. The RBI has said many times that those who are trading in cryptocurrencies, invest in it on their own risk.
3. Government Took Away His Responsibility
The government has made a big statement on Friday about bitcoin. Finance Minister Arun Jaitley has clearly said that the government does not intend to recognize Bitcoin at the moment. The Finance Minister said that the government's position so far is that virtual currency is not legal recognition. The committee report on this is being reviewed after which the decision will be taken.
4. Used in Illegal Activities
Being out of control of the government is suspected of using terrorists and hackers bitcoin in illegal pursuits. The biggest reason for this is that the identity remains hidden in transactions in it. Therefore, such people can not come in the grip of the government. Hackers are also making Bitcoin the medium for the ransom. A few months ago, the hacker of Ransomware had asked for a ransom in Bitcoin.
5. Not Accurate Estimation of Prices
When we buy shares of a company, then the prices of the company also rise when the company grows. But in the case of bitcoin it is not so. That is, the company's earnings, turnover, and full details of the expansion, but there is no such thing in case of bitcoin.
6. Can't Buy Anything From Bitcoin
When you buy a baggage, you can pay it by paying by Visa, MasterCard and Rupay card, while in Bitcoin cases it is not so. The Reserve Bank has clearly said that we do not accept such transactions.
7. It is Neither a Commodity Nor a Currency
In ancient times coins of metals like gold and silver are used. After this, the coins run by the government or by the RBI came. They were called Fiat currency. While Bitcoin is not a commodity in the currency category, so far.
Angel Commodity Deputy Vice President (Commodity & Currency) Anuj Gupta says that after getting huge profits in less time, investors are increasing investment in Bitcoin. They say that many investors are putting money in Bitcoin instead of Gold.
8. Ponzi scheme racket
Not only operational risks, but there are other risks in cryptocurrencies. Pongi schemes are being launched for fraud. They are promising guaranteed returns from investors. Professor and chairman of the Center of Excellence in Banking at IFIM, Rajendra Sinha says that some companies are making promise of double returns in less time. Investors should avoid these because there is a lot of fluctuations in the price of cryptocrycency.
9. JP Morgan Had Told Fraud
Jamie Damon, CEO of American Investment Bank JPMorgan Chase, has talked about Bitcoin so far that it is the world's largest fraud and investing in it is stupid. International Monetary Fund, which means the director of the IMF, also expressed concern about the rising prices of bitcoin.
10. China Rises Sharply
90% of Bitcoin is traded with Chinese exchanges. After this, the Chinese government increased the transaction fees fast, after which the volume of business fell 20 percent. Apart from this, online tokens were banned.
What is bitcoin?
Bitcoin is virtual currency. It is also called crypto currency. It can be used like other currencies such as dollars, rupees or pounds. In addition to online payment, it can be exchanged in dollars and other currencies. Bitcoin was in trends in the year 2009. Today it is being used for global payments. Bitcoin is the exchange for sale and sale. Big business owners from around the world and many big companies are using it in financial transactions.