4 Arguments In Favour Of And 4 In Against For Bitcoin Investment In India
Most people think of bitcoins as having the same appearance as tomatoes pasted on Aisle 9 but being more plentiful, bland, and useful. The skeptical view the list of cryptocurrencies as a proxy most-wanted list. Both sides are partially correct. An interagency mission to foster financial innovation while safeguarding American consumers’ interests has been launched due to United States President Joe Biden’s executive order on digital assets. While many business executives like the positive approach, some detractors want a crackdown. They are not to a fault. We have our own reasons to support and not to support Bitcoin investment in India.
Reasons for bitcoin investment
No external parties:The Bitcoin network acts as a virtual currency platform. Bitcoins have not been subject to manipulation since there is no third party involved. Each duplicated copy of an investor’s online transaction is recorded in the databases.
No monitoring:If you have a Bitcoin wallet and already use Bitcoin, you are a user. No one else can see the information in your wallet, such as the number of bitcoins you own, the timestamps of your transactions, etc. The sole exception to this rule is when the wallet owner voluntarily makes the wallet’s address public, in which case only that address may be tracked.
Flexibility:In many traditional investment products, moving cash or investing money still requires a significant amount of additional effort. Numerous documents must be presented, including proof of residence, a Social Security card, pictures, etc (as part of the KYC Process).
Bitcoin investments do not need the submission of any paperwork. A user must create both a wallet and an address, and there is no limit on the number of addresses a user may have as long as they are technically viable.
Accessibility:Bitcoin may be purchased and traded on cryptocurrency online exchanges, making it easy for the public to get it. These exchanges have facilitated the use and transaction of cryptocurrencies. Using these exchanges, it is uncomplicated to purchase or sell not just bitcoin but also other cryptocurrencies.
— CryptoCoinz.com (@CryptoCoinz_) July 5, 2022
Reasons not to go for Bitcoin investment
Not a legal tender: In India, the acquisition and selling of bitcoins are still considered illegal. The Reserve Bank of India does not accept cryptocurrencies as legal tender (RBI). In addition, the Reserve Bank of India has said that it has not provided any licences for cryptocurrency trading.
Any investor or user who engages in transactions with bitcoins or other cryptocurrencies does so at their discretion and undertakes all risks connected with such transactions. On the other hand, the government is investigating the potential of enacting regulations that would levy a tax on cryptocurrency revenues.
No security:The bulk of investors choose to pool their capital in safe and secure assets. Bitcoin investment greatest deficiency is the lack of clarity around its long-term potential. There is always the possibility of severe volatility, as well as cyber-attacks and a variety of other dangers while conducting digital transactions.
Prone to illegal activities:Since the government does not oversee bitcoin transactions and no paper trail can be used to gather information about bitcoin transactions, users on both sides of a transaction can keep their anonymity in bitcoin transactions.
Rise of other cryptocurrencies:The price gain that bitcoin has undergone over time may be attributed to its dominance in the cryptocurrency industry.
In recent years, several advancements have led to the emergence of several cryptocurrencies, so it is no longer the sole currency based on blockchain technology. Therefore, there is no guarantee that bitcoin will remain the most valuable cryptocurrency in the next years.
In terms of return potential, the cryptocurrency market may seem exciting to investors, but many feel it has already passed its peak. Due to the risk that it is a bubble that might burst at any moment, investors are warned to choose the most suitable investment vehicles, such as mutual funds, for their money. In addition, the Indian Ministry of Finance just recently announced that virtual currencies would not be recognised as legal tender in the nation. This is a straightforward and unambiguous warning from the ministry to the general public about the hazards associated with hacking. According to a statement issued by the Ministry of Finance, “consumers must be vigilant and very cautious to avoid falling victim to these Ponzi schemes.” Because virtual currencies are stored electronically, they are more vulnerable to cyberattacks, which may result in monetary loss. It is advised that you invest the money you’ve worked so hard to earn in profitable ventures.