Yesterday, bitcoin hit an all-time high of US$ 4,151. Time travel to 2013 and bitcoin was trading at a mere US$100. That's a sky-high return of 4051% in just around four years. Little wonder Bill Bonner declared bitcoin 'the most profitable investment in the history of the world'.
As per an article in BusinessToday, bitcoin trades on popular exchanges like Zebpay, Unocoin, and Coinsecure. Most of the exchanges have Android and IPhone apps that let you link your bank account for quick transfers.
Now, before you decide to buy bitcoins, you need to be aware of the risks involved. For example, did you know the cryptocurrency market in India is completely unregulated? If the bank loses your money, you can complain to the Reserve Bank of India (RBI). But with bitcoin, you have no one to turn to.
Further, the password for your bitcoin wallet is irrecoverable. If you are unable to access your password for any reason, the entire balance will become worthless.
Another concern is that bitcoin transfers are irreversible. Even if the transaction is initiated by hackers trying to steal your bitcoin, the transfer cannot be reversed. Once stolen, bitcoins are irrecoverable, making them prone to cyberattacks.
Another risk, currently, is price. While it's difficult to know the right value, it's surged more than thirty times in four years, prompting the question: Is bitcoin a bubble of epic propositions? It's a question Bill Bonner has been trying to answer in a series of fascinating articles.
For those interested in dabbling in cryptocurrencies, the Equitymaster Insider Ankit has done extensive research on bitcoin and its competitors. If bitcoin does interest you, I strongly recommend you to read Ankit's premium guide - Bitcoin 101 (subscription required).
Data Source: Investing.com