Elon Musk had declared that Tesla has quit accepting Bitcoin as a mode of payment for its cars.
Bitcoin, the world’s first decentralized numeric person-to-person cryptocurrency, is universally observed as an revolution in today’s currency and monetary markets.
When it comes to Bitcoin or Crypto one question which gets clicked in everyone’s heads is whether Cryptocurrency is actually a wise investment. The response to this inquiry is very critical on the grounds that it may be a smart investment, or it could be not.
Digital currency can either get you incredibly rich or you could likewise wind up losing your cash. Similar to other investment options, Bitcoins assets come with oodles of uncertainty, yet also plethora of potential rewards.
Current Scenario: Bitcoin plunge lowest since February
Bitcoin is presently at its lowest since early February. A week ago, Elon Musk had declared that Tesla has quit accepting Bitcoin as a mode of payment for its cars.
Bitcoin and other primary cryptocurrencies sank after the People’s Bank of China emphasized that the digital tokens can’t be accepted as a mode of payment. On and on, China restricted financial institutions and payment organizations from offering services related with crypto exchange, and admonished investors speculative crypto trading.
Here is what crypto insiders think about Bitcoin Investment:
Nischal Shetty Founder of WazirX
‘However, right now, what we’re seeing in terms of Bitcoin prices is a result of multiple factors like the China rumours, DXY Index, and more. This price correction was imminent. It’s a healthy correction and we have to understand, markets don’t go straight up, it has to take a breather to correct itself and then move up again.
However, news and rumours like this will not impact long-term Bitcoin investors. Bitcoin has been around for over a decade, and it has withstood two global recessions. It is considered as digital gold, and is emerging as a as a preferred investment class especially among millennials because of its underlying technology.
Fluctuations or volatility is essentially the kind of environment in which the traders trade. Traders typically estimate the macroscopic movement, support levels, resistance levels, and the fair market value before taking calculated risks. As for the current crypto climate in India there has never been a more exciting time as the Govt. of India plans to set up a new panel to study crypto regulations. Crypto is a massive opportunity for our country, with significant potential to enhance the capabilities of an economy that is already well-suited to attract crypto-related capital investments, considering the market size and internet connectivity in India.’
Ashish Singhal, CEO and Co-founder, CoinSwitch Kuber
“While bitcoin has been volatile, we feel this is just a part of market building. Cryptocurrency is still at a very nascent stage, and every asset class during its initial phase goes through this sort of volatility. Look at gold for example. On the other hand, we see Ethereum doing really well given a lot of DeFi projects are built on it. As we move towards greater adoption for crypto and people understand the tech that goes behind it, we will further be able to unlock crypto’s full potential.”
Sathvik Vishwanath, Co-Founder & CEO, Unocoin
“The pandemic has made people figure out work and income sources from the comfort of their home and earning through investment in crypto has created greater returns than any other asset class. The variation in prices since a week is more seen to be an opportunity for the investors who were waiting for their price point. We have seen a higher number of registrations and better volumes since a week given the assets are changing hands quickly as compared to when prices were stable for months together.”
Neeraj Khandelwal, Co-founder, CoinDCX:
“Bitcoin is a store of value and should be treated as an asset class with a long-term forecast on gains. Price corrections are part and parcel of every asset class and bitcoin is no stranger to the same. If you look at the YOY appreciation in Bitcoin’s prices you would see steady growth. Bitcoin’s stellar rally from its early April 2013 lows of $50 to having appreciated by over 1300 times to its recent high of $66,000 in mid-April 2021. Recent comments by some Industry stalwarts such as Elon Musk might have also contributed to some corrections in the pricing.
Moreover, the recent ban on crypto related transactions imposed by the Chinese Govt. seems more of a precautionary measure since it doesn’t stop Chinese people from holding the currencies. With the immense interest from the investors as well as crypto developers’ communities across the world, we feel that the situation will stabilize soon, and the government bodies will be able to see the prospects the crypto industry offers. In term of investment, we have always maintained that investors should focus on the fundamentals and the long-term nature of the asset class rather than looking at short-term volatility.”
Kumar Gaurav- Founder and CEO, Cashaa- Crypto friendly Neo bank.:
“Cryptocurrencies rally in accordance with the demand and supply. Now these trends seem to be more driven by the online buzz . Hence, it is difficult to say that any one particular crypto is smart or not smart. It is more about if the investors are being smart to follow the right trend. Also, it’s been observed that coins with low value are giving higher return than Bitcoin. ”
Vinay Bharathwaj, Co-Founder and Co-CEO Stockal Inc.:
“I believe there are no fundamentals that drive the price up or down in respect to Bitcoin. It is predominantly a speculative play. As much as we like to believe it is decentralized, the fact that one tweet from Musk can swing the value of bitcoin is a concern. Crypto is undoubtedly here to stay and will see further demand from retail institutions. We expect that the Indian government may have to now rethink its apprehensions on cryptocurrency as crypto-trading platforms are popular among Indian audiences and steadily gaining traction. If an investor wants to look at riding the current frenzy on bitcoin and crypto in general, they should not allocate more than 3-5 percent of the their investment portfolio. Basically reduce the loss but have a good upside. It is still very early days in respect to crypto and to recognize it as a assets class in your portfolio. We have a seen a huge interest in crypto stocks on Stockal’s platform and we would advise investors to do their research well and hold on to their investments from a long term perspective”
Avinash Shekhar, Co-CEO, ZebPay:
Bitcoin may be the greatest invention of the century, perhaps bigger than the Internet itself. The rise of such a breakthrough technology will have roadblocks, but they will only make Bitcoin stronger.
My advice to investors is to invest in education first. This will give you the confidence to manoeuvre through volatility and take a long-term view. Don’t take my word for it or Elon Musk’s. Do your own research into Bitcoin and look past the tweets and headlines to the fundamental value proposition, the same way a smart investor researches a stock before investing.
Tejas Khoday, Co-founder & CEO, FYERS:
Investing in Bitcoins is certainly not safe or smart. It’s a very risky bet if you’re buying at inflated levels. For instance, In the last 1 year, Bitcoin went up by 300%. However, what’s important to note is that until April it was up by 560% and since then it has crashed by 40% in 1 month.
Source: Business World
