Cryptocurrencies are on rage for quite a long time now. But can you guarantee the safety of your capital here?
People keep on investing in financial products when they feel that they will get good returns. Not just this, they invest mostly when they are sure that their capital is safe and they will definitely make some money. While mutual funds or stocks do guarantee you this safety, cryptocurrencies like bitcoins not.
The only reason people invest here is its massive returns, which is literally not possible elsewhere. And these returns can be the only reason it has still kept some people interested. But there is extremely high risk involved. And hence, more and more people are now shying away from this zone.
Are you really growing?
When people buy cryptocurrency, they are not really sure of the growth part. When you buy stocks of a company, you know that if the company grows, your stocks will also grow. But, on the other hand, the bitcoin success is purely dependent on demand and supply. Which, by the way, cannot be determined beforehand.
So when the demand rises, the bitcoin prices also rise. But the speculations are still rife around this fact. There is no certainty as to what drives the prices of bitcoins. So when you have some underlying uncertainty, you often tend to get speculative on whether you should invest in cryptocurrency or not?
In most of the places in the world, bitcoins are not accepted for any transaction. So if people are buying it, they are doing it just thinking of the future. Right now, they have no intention to buy anything with it, or use it as any means of transaction. In India as well, RBI has clearly made people aware that they have no intention of developing this network, and have also warned people against investing in it.
Since the market is not regulated, even if you find a transaction way, you are dealing with huge risks. So, when there is no remittance possible, people are also losing their interest in large numbers.