Bitcoin, the latest frenzy to take the investment world by storm, has seen a grandiose growth stream in the last few months, where it went from just a few thousand dollars at the start of 2020 to $24,000 in December. However, if you think that this is as big as the crypto will get, think again.
Bitcoin has, for the first time in history, surpassed the $50,000 mark, albeit briefly. The cryptocurrency reached a value of about $50,191 at around 7:32 am in New York and is now up about 73% so far this year. However, ‘for the first time ever’ is probably not even surprising for Bitcoin enthusiasts, who have been witnessing the crypto break records every week.
Names like Elon Musk, and Twitter CEO Jack Dorsey have shown interest in Bitcoin, with Tesla securing $1.5 bn worth of the currency, announcing that it may soon start accepting Bitcoin as a mode of payment for its cars. Jack Dorsey is keen on the growth shown by Bitcoin as well, and partnered with American rapper Jay-Z to invest $23.6 million towards its development.
With such prominent names backing up the cryptocurrency, Bitcoin has seen its price swell up by crazy amounts (even by its own standards) after it fell of in the middle of January.
With all that being said, investments in Bitcoin do not come without their own fair share of risks. Many experts equate Bitcoin trading to gambling, as there is no predicting how the market will react to it.
Moreover, if you are from India, you might have another thing to worry about. The Indian government recently presented a bill to possibly ban all private cryptocurrencies in the country, just almost an year after RBI had allowed their trading. While such a move may not happen anytime soon (due to a large number of Indian investors investing in cryptocurrencies), the government’s will to create a public cryptocurrency may make trading difficult in India.