In the recent period, you have heard about the thing called BITCOIN and might be wondering if it’s too late? So, bitcoin is called a cryptocurrency and it’s not regulated by government or any regulatory body. According to the University of Cambridge, around 3 to 6% million people worldwide are using these kinds of cryptocurrencies. Thus, it has picked up speed.

How it is different than Paper currency?

Paper currency printed by government is a common mode of transaction based on different situations incurring in the economy. The government decides whether they want to print more and then you get inflation and economy get affected. Bitcoin has a hard cap which is 21 million units. More than 16 million units have already been launched and creation of the remaining 5 million will be spread across. It is good because it can’t be manipulated because it has secured network. Earlier bitcoin used to trade as unlawful cryptocurrency but now companies are accepting bitcoin. Companies such as Microsoft, Dell, PayPaland and a lot of people are using it as real form of exchange.

Is it too late?

You might regret not investing a month ago or a year ago, this is trying to time the market. When you try to time the market, Warren Buffett calls that “Accurate as being a fortune teller”. Nobody can time the market, or no one can tell you to buy a stock which will go up magically. The research says that cryptocurrency market is here to stay and not going to go away right now.

Cryptocurrency has almost 400 billion market cap and is aiming for the market cap of gold which is around 7 trillion. Bitcoin or any other cryptocurrencies are going to be major asset class like stock, bond, commodities, and derivatives. But before investing, you always must look out for risk involve in it. There will be always a major risk factor just like any other investment. Any asset class will never go up in a straight line, there will be always volatility. Also, a lot of people are waiting for cryptocurrencies to become safer. However, if you wait till its safer then there is no money to be made.

Irrespective of other factors, a long-term investment spread in Bitcoin can yield higher return for the investors. Government of India haven’t given green flag to crypto although they are planning their own cryptocurrency called Lakshmi.

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