Over the last one year, Bitcoin grew from 700$ to 6000$ . You would have got over 5 times returns in less than a year and the bull run might continue for some time.
But is it legit to trade bitcoin?
India ready for Bitcoin?
What will RBI do?
Will it become a scam?
Bitcoin is a global currency without any regulation from the central bank and currently trading across many nations. More than use as currency, bitcoin is used for trading purposes and there are a lot of bitcoin mining companies across the globe who are processing the exchange. There are some exclusive stores which are accepting bitcoin payment gateways. The most active trade of Bitcoin happens on the dark web where it will be difficult to trace the source. During the ransomware attack across the globe, companies are forced to pay hackers in bitcoins. There are more than 10000 bitcoin millionaires according to a report published.
The Indian perspective of bitcoin is very different, there are few startups who have created bitcoin exchange in India like Zebpay, Unocoin etc. many enthusiastic and wannabe millionaires have started trading on those platform in India. Many could have made decent returns on their investments as well. But on the trade level bitcoin is not accepted by many merchants and other than trading there is no monetary value to bitcoins in India. The US perspective is quite different as many merchants started accepting bitcoin as a monetary exchange.
RBI over the last few months have been monitoring Bitcoin trade, During the past few occasion, RBI made it clear that they are not accepting BitCoin as Legit currency. It is in agreement with China policy which has recently banned bitcoin exchanges in China. RBI as well might ban Bitcoin exchanges in coming months as the government considers Bitcoin as non legit crypto currency.
This ban will lead to the shutdown of startups and exchanges that are operating in that space, however people who have bitcoins can trade them globally while the currency exchange is still not possible.
Scams in the name of Bitcoin and ICO
Over the last few month, I tried few bitcoin exchanges and some ICO’s. Tokens and ICO(Initial coin offering) which is seen as a fundraising vehicle for startups are seeing this as an opportunity to dupe people with Tokens in the form of ICO. Daily at least I see one new startup trying the raise money via ICO, These startups might never be successful, but people behind it will be successful. They have no responsibility for your investment and cannot be made accountable for any losses you incur by buying tokens. Because they are not regulated and no one can hold them accountable for returning investor money.
It is time for RBI to step into action and take necessary initiatives to avoid malpractices. If you are a bitcoin investor make sure that your investments are evenly spread across So that you don’t have to take sudden losses.