Bitcoin: A goldmine or virtual land mine?
LokMarg offers five quick takeaways about this controversial currency for potential investors: 1) No one regulates the value of Bitcoin although it is projected to be run by an unidentifiable user community, which means it can be priced $10,000 today and $1,000 tomorrow and $100,000 the day after. Investor must realise this is the proverbial roulette in a casino. 2) Even though there is little proof of it most security experts suspect that Bitcoins are being used for unlawful trading of funds and rogue nations or organisations could be using it to channel their funds or launder their assets. This means if you are a Bitcoin user or investor, you are willy-nilly aiding and abetting unlawful operations. 3) Mobile or desktop apps are used to create an online wallet for the users, which in turn can connect a Bitcoin exchange to your bank for trading. Apparently, the system seems to be working fine due to a block chain, a continuously growing list of users. However, the day this chain breaks down, like in Ponzi schemes, the newest entrant will be the most severely hit. 4) Early birds have devoured the worm. Experts believe that the cryptocurrency has had its most fruitful run in 2017. This means the early traders have booked their profits and exited safely. The current price is too high from an investor’s point of view to reap high dividends. So, purely from the business point of view, the currency does not have much returns to offer. 5) Mystery drives it. The charm of Bitcoin lies in its secrecy. There is no valid reason behind its popularity other than the enigma around this currency. It is this mystery that often drives users and investors to fall for it, akin to becoming the member of a secret society. //