Prolonged ignorance could result in a sudden shock for the global economy
Over the years, crypto currencies have evolved into a massive ecosystem of their own. Most prominent among these crypto currencies is Bitcoin that is a beast of its own and commands a loyal investor base.
Says Rajesh Dhuddu, Senior Vice President (Market Development), Quatrro Global Services Pvt Ltd, “With a valuation of $70 billion, Bitcoins cannot be ignored as a temporary blip. Having said that, crypto currencies, unlike gold, land and securities, will take some time for investors to realise that Bitcoins are a mainstream asset class.
Over the past eight months, Bitcoin’s value has surged by over five times. On September 15 (at the time of writing, it had already fallen to $3500 after having crossed $5000 merely 13 days earlier). Still, it is a huge rise from $1,000 at the start of 2017. By the time this article is being read, it may well have charted a new high or fallen again. On a year-on-year basis the contrast is starker, considering that one Bitcoin was valued at $600 a year ago in July-August 2016.
Yes, sceptics may be quick to say that the above trends are just a sudden spurt and may not be entirely comparable with conventional currency systems. True, given that Cryptocurrency trading began on a serious note only in 2013, conventional currency systems have a longer history.
However, if we compare the growth between paper currencies, the trends observed in the latter are startling. While total daily trading volumes in paper currencies have grown from a little above $1 trillion in 1998 to about $5 trillion currently (5x growth in 19 years), trading volumes in crypto currencies have grown from $1 billion in April 2017 to $5.8 billion (6x growth in just 4 months).
Should you invest?
هذه القصة مأخوذة من طبعة October 2017 من The Finapolis.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 2017 من The Finapolis.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
7 Ways to Prevent Text Neck
Our head is heavier at an angle than it is at a neutral position. That means our increasing usage of smartphones for reading, texting, etc is putting undue pressure on our spine
How To Take Your Networking To Next Level
Networking is one of the best ways to use your time
5 Fun Ways To Save Money
There are several simple ways to reduce spending and rack up more cash. Sukanta Kundu lists some interesting ones.
In Search of Higher Returns Amid Falling Rates
As Bank Deposit Rates Fall, Even Conservative Investors Are Switching Assets. Where Can They Go?
National Savings Certificates Help as Interest Rates Fall
National Savings Certificates (NSCs) have been among the most popular tax-saving options for ages. In spite of the advent of market-linked investment products such as equity-linked savings schemes (ELSS), the certificates have retained their charm for certain sections of society. In this column, let us discuss the various facets of this special instrument of investment.
What Drives Us to Invest?
I had made the journey from economics to finance. As part of Keynesian economics, we were taught about the three motives to hold money: the transactions motive, the precautionary motive and the speculative motive; all through my teaching career that remained part of my Keynesian economics. But two decades, later when I immersed myself into the world of investment, I had to develop my own tools to understand the new discipline and make my investors understand the working of their own minds. One night as lay turning on my back, poring over the day’s happenings, suddenly I made a strong connection between what I had studied years back and the problem I was grappling with now: the motives.
Ask The Finapolis
Col. Sanjeev Govila (retd) of Hum Fauji Investments answers readers’ queries on investments, taxation and personal finance. Do you have a question you want answered? Email your question to feedback@thefinapolis.com
Input Tax Credit To Benefit End-customer
Looking at the scale of India, it is reasonable to expect 3-5 years for the system to stabilize
Will GST Really Spike Up Your Bills?
As goods and service providers can claim input tax credit, your net tax bill will reduce say experts
The Bull Run Is Here To Stay
Karvy Finapolis’ event —“Is this the mother of all bull runs?” — evoked a thunderous response from investing public recently in Hyderabad.
