Bitcoin investors beware! Regulatory moves could block access to money
MoneyControl • Jan 02, 2018 12:49 PM IST
By Sarbajeet Sen
Sarbajeet K Sen
Moneycontrol News
At the turn of the New Year, the Government issued a warning against investing in cryptocurrency. The RBI had issued a similar warning earlier advising Indian investors to stay away from the rising digital currency craze.
Investment experts feel that the RBI and government’s decision to warn investors could be indication of stricter policy and regulatory moves that could catch cryptocurrency investors on the wrong foot.
“The biggest risk to cryptocurrencies is the lack of regulatory supervision. It may be possible that the Government bans all crypto exchange markets in the near future. In that case, all your hard-earned money invested in digital currencies would become inaccessible,” Jagmal Singh, CTO, Paisabazaar.com told Moneycontrol. Thus, a regulatory crackdown can lead to investor lose access to all the money invested.
Singh says investors should not dabble in something they do not understand. “One of the basics of investment is to understand what you are investing in. Unfortunately, most people, including many seasoned investors, do not yet understand cryptocurrencies and the underlying blockchain technology. Most people investing in cryptocurrencies are doing it to make quick money. We strongly advise against speculative investment. When everyone is greedy, you should be fearful,” he said.
Amar Pandit, Founder & Chief Happiness Officer, HappynessFactory.in says money invested in digital currencies may become worthless. “They answer to whether one should invest in digital currency is most certainly ‘No”. Those who invest in Bitcoins will get two rewards: a lot of heartburn as Bitcoin values bounces around like a kangaroo on steroids, and then heartbreak when the music stops, and their investment isn’t worth the pixels and bytes they’re printed on” he said.
On volatility, Pandit pointed out Bitcoins moved 150% to $19,511 in less
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