Bitcoin. We’ve all heard the word, we’ve seen the commerce-walas talk about it in bits and lengths and the business news channel folks go on and on about it. But what does it mean to a layman like you and me? Is it a profitable investment opportunity? How do I invest in it?
Worry not, we’re right here with our little guide to get you started without a hiccup.
What is it?
Bitcoin is one of those ‘Cryptocurrencies’. A Cryptocurrency is an electronic currency used in the digital payment system. It is widely used to make virtual payments. Bitcoins can be sent from anywhere in the world to anywhere else in the world because its software encrypted. The legal status of bitcoin varies largely from country to country and is still changing in many of them. While some countries have explicitly allowed its use and trade, others have banned it.
Is it lucrative?
At present there are 2.9 million to 5.8 million exclusive users using a cryptocurrency wallet, most of them using bitcoin. Tommy Lee of Fundstrat predicts investors will look to bitcoin as a gold substitute, and the fact that the amount of available bitcoin is reaching its limit makes this supply/demand relation even more compelling for those looking to make profits in the crypto market. “This is a game changer, enhancing the legality of the currency and likely speeding up the substitution for gold,” Lee quoted.
How do I invest?
The simplest way a person can invest in bitcoin is to directly buy some. Buying bitcoin today is simpler than ever. There are many established firms in the US and abroad involved in the business of buying and selling bitcoins. There are some dedicated exchanges as well where you can avail this digital currency. One can even buy it through offline mode. Another popular route to invest is also through buying shares of a fund which has invested in bitcoins. Currently in India, the price is Rs.162,157.53 per bitcoin.
The bottom line
Bitcoin is a hot property right now and investors, venture capital firms are betting that it is here to stay. For the average person, numerous ways exist to get into investing and buying bitcoin. Although while buying bitcoins, you should take the usual precautions as you would when meeting a stranger. It has its own advantages and disadvantages, so do your research to find the best fit for you.
Title image source: coindesk