Cryptocurrency – The Web of Misconceptions
Bitcoin = Cryptocurrency ?
Bitcoin has become so hyped up in today’s world that it needs no introduction at all . Well the thing that needs attention is Cryptocurrency. It is a very fascinating concept, attracting a lot of people towards it , especially after that big rally that we have seen in crypto market recently. But the question is that whether bitcoin and cryptocurrency one and the same because many a times people use both the terms interchangeably . I recalled, some days back i had a chat with one of my friend discussing about share markets and investment options and in that scenario i asked him whether he invests in cryptocurrency market , he immediately replied back
“oh Bitcoin? No, it seems we are too late now to invest in it . If i had bought it earlier would have been rich enough but now of no use”
Bitcoin is one of the cryptocurrency although it is not the only one present there . There are about 7000-8000s of cryptocurrencies present in the entire crypto market other than the bitcoin which are collectively also known as Altcoins . Bitcoin is the oldest and the first cryptocurrency introduced in the Crypto market . It was developed by Satoshi Nakamoto in 2008 which is the most powerful cryptocurrency in the market. The reason why bitcoin is so valuable and strong than other altcoins because it limited in amount as only 21 million bitcoins can be ever mined out of which 18.5 million bitcoins have been mined and by 2140 all bitcoins will be mined out . Another reason is that bitcoin is not controlled by anyone in anyway or in other words it is controlled by all which makes bitcoin more strong.
Is it legal in India ?
Also there is a question on the legality of cryptocurrencies . A doubt comes that “Are Cryptocurrencies legal in India or is it banned?”. Well Bitcoin along with all cryptocurrencies is absolutely legal in India . On 4th March,2020 the Supreme Court of India removed ban from cryptocurrencies and allowed the traders to freely trade in it. From that date till now there has been no ban on cryptocurrencies till now. Also it seems Govt. is positive on cryptocurrencies and even if they think of banning it in future, they would provide some months time period to the investors so that they can easily withdraw their money from it.
Are we Late to invest ?
As the price of the bitcoin has increased so much that the question that whether “are we late to invest” is a genuine question to come . But actually they are not late and no one would ever be late. There are always opportunities present in the market . Sometimes you have to wait and watch and sometimes you have to invest , cryptocurrency market is the same. It is still in its initial phase and there is a lot to come.
Bitcoin is quite a good investment option available but there are many cryptocurrencies available in the market which are equally good investment option. Generally most of the people have heard about bitcoin only so they tend to think that we are late to invest and they feel fear of missing out and don’t even try to enter in this market and due to this they are not able figure out many good projects. Although cryptocurrency is promising but it is not advisable to invest a large amount in this as it is very volatile and it is not a wise decision to invest your entire life savings in it. An amount of 5-10% of entire portfolio can be invested but more than this can be risky .
Scope of Cryptocurrency
Cryptocurrency market has a great future in long term as many big companies like Tesla , Paypal and other big investing companies have invested in Bitcoin which generally invests for long term say for some 10-15 years and they would not be withdrawing money in short duration or for any short term gain as they otherwise would have to bear extra tax due to this these withdrawal made. Therefore that is for sure that these large amount of money would be invested for a long time and will definitely boost bitcoin’s price .
Also One of the key thing is that bitcoin is the king of the market . whenever bitcoin increases , the entire market increases which means there is a great future for cryptocurrencies as well. Along with this many newbies are coming into crypto market which means new money would be coming into the market and this will decrease chance of manipulation by any single individual .However there will be many crashes in this journey as bitcoin is very volatile but in long term it would be good.