Unprecedented Rise of Bitcoins
It was only year 2009 when Bitcoin emerged and its roller coaster ride of eight years, Bitcoin is the world’s first and most famous crypto-currency. There’s an upper limit of 21 million bitcoins that can exist. Bitcoin is on the verge of excepted as a mainstream global financial asset with more than USD16.5 million that have been mined in circulation, though its legality questionable in different countries. In addition, it has become a medium for people to move capital outside traditional currencies.
Price of bitcoin has exceeded the price of an ounce of gold for the first time. It closed at US$1268 yesterday i.e 03 Mar 2017, while a ounce of gold stood at US$1233.
Bitcoin was the world’s best and fastest performing currency in 2016 – up 120%, while in 2015 it was up 40%. Price of 1 BTC in Indian rupees as on date stands at Rs 86233. On the other hand, gold is trading in India at around Rs 29150 for 10 grams. It implies,1 BTC can now buy 30 grams of gold. Question is can you really find a seller / buyer in this category in India.
Though Bitcoin as crypto currency is trading and soaring high but it has the risks of loss in single stroke, when prominent bitcoin trading exchange, Mt. Gox, crashed in year 2014. You could have lost your life savings speculating in it.
Dark sides of Bitcoin
Bitcoin is not backed by anything tangible and neither is it backed by most of the governments across the world. Acceptance level of Bitcoin is quite evident from the map below.
Unofficially, Bitcoin is rapidly gaining acceptance in India. Few of the India’s Bitcoin startups that have emerged are- Zebpay, Unocoin, Coinsure, and Searchtrade. It is time to take a call whether to legalize Bitcoin as legal tender or it may sooner or later find way out for black money stashing.