Like America, Europe, and China, in India too, the craze for investing in cryptocurrency has increased in the last few years. Although the crypto market has been running flat for the last one and a half years, in the last week it has registered a rise.
Bitcoin, the market's largest cryptocurrency, is also seeing tremendous growth. If we talk about the last year, it has increased almost three times. In such a situation, many investors might be attracted to it. But is investing in Bitcoin a profitable deal, or should investors avoid it?
This week Bitcoin Price crossed $ 69,202 (Rs 57.4 lakh). It reached an all-time high. If we talk about its rise, the price of Bitcoin has increased almost 3 times in the last year. Today we will tell you in this article why you should not invest in it.
What is Bitcoin?
Bitcoin is a type of digital currency. It is believed that it started in the year 2009. Now gradually this currency has started being liked by many investors in the world. At present its price has reached lakhs of rupees, so many investors want to invest in it.
Let us tell you that its payment is done through cryptography. For this reason, it is also called cryptocurrency.
The transactions taking place in Bitcoin take place through digital messages. This means that it is quite different from trading in the stock market. Actually, it has not been approved or formally accepted by the central bank. Therefore its exchange is done privately.
Just as a demat account is required to invest in the stock market. Well, similarly to trade in Bitcoin, special software is required.
How much is Bitcoin worth?
Bitcoin has been witnessing a boom in the last few years. In such a situation, the main reason for the rise in its prices is Bitcoin ETF. Actually, Bitcoin ETF has been approved, after which there has been a rise in its prices.
According to a report, the price of Bitcoin on November 10, 2021 was $68,789. Whereas in July 2022, its price had become $20,547.81. Its price in January this year was $42,034. Its price has seen a jump of more than 20 percent in just 5 days.
After this rise in Bitcoin, investors are thinking of investing in it. Let us tell you that you should not invest in this. Actually, there is risk in it but there is no recognition of this currency.
Why you should not invest
Bitcoin is not regulated in India. This means that it has not been given any recognition. RBI (Reserve Bank of India) and SEBI have not made any regulations regarding crypto. Even this has not been accepted.
Huge fluctuations are seen in the trading of Bitcoin. If it rises very fast it also falls very fast. The Rebrit Devol Index, which reflects the ups and downs of Bitcoin, has increased by 76 percent.
The Reserve Bank of India (RBI) has told Bitcoin investors that if they are defrauded regarding Bitcoin, they will be held responsible. That means RBI will not help in this.
Cryptocurrency has no fixed value. If some people also decide to withdraw from crypto then its value will become zero.
There have been many scams regarding crypto. In such a situation, the Government of India will not help you in case of these scams. Currently, this has been legalized only in some countries of the world.
Is Bitcoin legal in India?
No central authority has been issued regarding cryptocurrency in India. This means that no regulations have been made regarding these. This clearly means that it is not a valid currency in India. Even though it is not illegal in India, there is no specific ban regarding it.
If an investor in India invests in crypto, he is required to submit a calculated profit and loss report in his account.
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