Not all people have the quality or aptitude of being an entrepreneur. Entrepreneurship is a very exciting but an intensely difficult profession in our country and failure rates are very high. Real success stories are few and far in between, and most entrepreneurs struggle and grow very slowly. Very few grow rich and make it to the news headlines.
There is an alternative way to wealth. Here you take a risk of a part of your salary savings. Keep investing a small part of your salary into high risk investments. It is a much safer way to creating wealth than entrepreneurship.
Investment in bitcoins or any other cryptocurrencies is one such investment. Just write off a part of your savings to your super-rich dreams. If it clicks you become super rich, if it does not, you forget it without batting an eyelid. Once you have made up your mind and decide the amount you start studying the investment avenue. Remember, you must never go by any one single advice into any new investment. Gather information and create your strategy of assessment first, but don’t get confused by the barrage of information on the net.
Where and how to investment in Bitcoins?
If you have never invested in cryptocurrencies, choose the best known, and the one easiest to buy and sell. Bitcoins have been in business since 2009, and it’s track record can be checked. Though Coindesk the leader of blockchain news lists Bitcoin and Ethereum as potential investment avenues we chose only Bitcoin because it can be easily bought and sold in India through Zebpay. You can buy or sell Bitcoins freely through your credit or debit card in India and nobody has moved to stop such transactions.
Besides if you track the growth of the investment or listen to investor feedback it is awesome. The value of Bitcoin has been rising consistently since 2011 with some volatility. Such volatility should normally be acceptable for any high gain investment. Over a six year period from 2011 to 2017 the price of 1 Bitcoin has grown from $ 1 to $ 4200 which is phenomenal. No other commodity, currency or stock investment has such a brilliant track record. So why is it considered risky?
Why is Bitcoin risky ?
In February 2011 the price of the Bitcoin touched $1 for the first time and it became of interest to serious players. Gawker published an article on the Silk Road in June 2011 causing the price of Bitcoin to spurt to $9.2 in the exchanges. By 19th June the price shot upto $17.7 before Mt. Gox one of the biggest Bitcoin exchanges got hacked and Bitcoins worth $8.75 million was stolen. However the investors were paid back and the company carried on with confidence of investors. Mt. Gox continued to grow after that to become the biggest Bitcoin exchange in the world in 2014. when it was again hacked. This time $460 million was stolen from its bank accounts by hackers. Mark Karpeles the CEO of the Tokyo based company had to file for bankruptcy. Insiders blame Karpeles , a geek himself, for using untested software while coding that made it possible for outsiders to hack the accounts.
The fact that Bitcoins have been hacked or stolen and are largely controlled by geeks and not a corporate set up or financial honchos are fundamental risks. The exchanges are also owned by one or two individuals and don’t have corporate stability and joint responsibility. Unless you have an understanding of international finance and standard exchange norms it is a major disadvantage and high risk. Another risk is that these digital currencies have no formal regulatory approval from most nations.
But these are early days. Bankruptcies will force Bitcoin exchanges to sober up and streamline their process. Some will lose money but others will wildly gain. Eventually order will set in and regulators will create guidelines that exchanges will follow.
Note : In a world where mutual funds, stock brokers, promoters and under writers have cornered the sweet spot of high profits what does the maverick investor do? Indian express spoke to a few risk taking individuals and found that despite high risks involved they have moved into the wonderland of cryptocurrencies. Watch this spot daily to read more.