Is Cryptocurrency reliable? What do Indians say?
Cryptocurrency is a popular word in today’s world. More and more people are joining the growing list of crypto users. Even the central banks of various countries are launching their own cryptocurrencies,with added security, regulations and exciting features. Reserved Bank of India (RBI) has already started trials for its own digital currency, e-₹, in retail segment.
What’s cryptocurrency? A cryptocurrency is an encrypted data string that denotes a unit of currency. It is monitored and managed by a peer-to-peer network called a blockchain, which also serves as a secure ledger of transactions like, buying, selling, and transferring. To put it in a simple way, it’s a digital currency, an alternative form of payment created using encryption algorithms. To use cryptocurrencies,you will need a cryptocurrency wallet. Some of the most active cryptocurrencies are Bitcoin, Ethereum, Tether, Binance coin.
With astronomically high returns overnight,cryptocurrency can be a great investment. However there’s a big downside too. Investors should carefully analyse several factors, such as time horizon, risk tolerance, high volatility rate and liquidity constraints, before investing or trading cryptocurrencies.
Indian market largely depends on middle class investors. Big players like Ambani, Adani, Jhunjhunwala form 15–20% roughly. Unlike others, Indians take longer to be open to new things, specially if it’s about money. Most people would rather prefer to deposit their hard earned money with public sector banks or post office than to invest in share market,as they know their money is in safe hands. If there is even a tiny sign of risk or uncertainty, they will turn their back. Even small swings in prices keep them up at night. Higher volatility investments like cryptocurrencies is not at all a desirable investment for them.
But with upcoming changes in global market and economic situation being grimmer every day, it’s probably high time for Indian investors and money makers to start to think about alternative options. Otherwise,when all other countries will flourish by adapting to new ideas, we Indians will remain stuck in the same place.
Just to be clear, I am not saying that we should invest in whatever new ideas come into market, without giving much thought. No, I only suggest to be more open to new ideas and to be willing to give it a chance after careful homework. If necessary, don’t hesitate to ask for expert opinion. Thanks to the efforts of RBI, nowadays you can easily get lots of relevant information from the official website of the bank. It’ll certainly help common public take profitable decisions.
