[2016-07-11] BS: Bitcoins: Not for the faint-hearted

[polynesia]

Bitcoins: Not for the faint-hearted

http://www.business-standard.com/article/markets/bitcoins-not-for-the-faint-hearted-116071100004_1.html

Bitcoin has emerged as an alternative asset class, delivering high returns in the past few years but not without equally high risks. A year before, the crypto-currency was quoting at $260 a unit. In the past six weeks, the price has risen to $640, following the British vote to exit (Brexit) the European Union and a depreciating Chinese currency. In India, each bitcoin is worth Rs 44,000-45,000. A crypto-currency is a medium of exchange that uses cryptography to manage the creation of new units, as well as to secure transactions.

Considering the returns, there are risk takers in India who are buying bitcoins. Though it is not the only crypto-currency, it has more acceptance and popularity. Raja Raman, director (technology) at Sapient Global Markets, says: “In troubled times, most investors rush towards safe assets. Brexit has been one such recent event that brings back memories of the Lehman crisis. The most obvious solution is gold. Over the past few years, bitcoin has emerged as the most commonly used crypto-currency. By far, it has the largest market capitalisation among all such currencies.”

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[1714909286]

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[dantanas]

It has always been risky, but worth it for those who wait out price drops. Remember when it hit 1000 USD. wow.

[polynesia]

It has always been risky, but worth it for those who wait out price drops. Remember when it hit 1000 USD. wow.

If they do not invest more than what they can afford to lose. 
I definitely wouldn't bet my life savings on Bitcoin.