Predominantly it was the technology stocks in the US till a few months back that were getting investors’ attention, but that got trumped more recently by the multi-bagger returns of some cryptocurrencies.
There are newspaper front page comparisons of the value of bitcoin with the returns on the Sensex and gold, where the crypto emerges as a multi-bagger, giving better returns than others.
There are interviews with crypto exchange owners that talk up the future value of this unregulated decade-old virtual currency. No wonder people feel like they missed the biggest gold rush again.
Crypto enthusiasts like to compare bitcoin to gold using analogies of ‘mining’ bitcoin—no matter that only keyboards are tapped and no underground mines are explored.
The crypto logo has a shiny gold-like image to emphasize that association, but nobody yet has worn a ring or a necklace made of bitcoin for it is a fully virtual currency that is unregulated.In India, the buying and selling of cryptocurrencies move in and out of being illegal.
Supreme Court discussion on bitcoin issues were held by March 2020
It was in March 2020 when the Supreme Court of India lifted a two-year ban by the central bank—the Reserve Bank of India—that had effectively stopped cryptocurrencies from being traded and exchanged.
While the ban has been lifted, yet the discomfort with something that is fully virtual, has no underlying asset value and is unregulated, does not leave the minds of fiduciary-minded financial advisers and planners.
But the returns are mouth-watering and if the buzz around overnight crorepatis is giving you serious FOMO (fear of missing out), let’s go through this checklist—if you answer yes to all of them, go ahead and put your money in this virtual casino.