It is the excellent start to the New Year 2018 as the bitcoin price hovering below $14000 mark. At the press time, it was trading at $13,833.40 on CoinmarketCap.
Remarkably, 2017 was the high for Bitcoin in spite of some volatility. Since, the beginning of the year, it had jumped 14 times of &1000. As a result, authorities in many countries to warn people to be aware of the fluctuations in the prices. However, hits a record high of $20000 in mid-December, before observing the most significant selloffs since 2013.
Bitcoin is world’s most famous and most significant digital currency. Although it had several volatility and now could be a wildcard for 2018.
The chief equity strategist and senior portfolio manager at Nuveen Asset, Bob Doll said
“Bitcoin is on a momentum run, and momentum plays go until they stop.”
Since the Indian government always cautioned investors regarding Bitcoin that it is like a Ponzi scheme. However, it doesn’t own a legal tender and not secured. The Finance Ministry said in a statement,
“There is a real and risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earning money. Consumers need to be alert and extremely cautious as to avoid getting trap in such Ponzi schemes”.
Further, he added that digital currencies are stored in a digital format. Thus making them easy for hacking, insecure passwords, illegal activities result in loss of money. Bitcoin will be not having any intrinsic value or assets, according to the finance ministry. The price of Bitcoin entirely depends on mere speculations that result in spurt and volatility in their prices.
Moreover, the RBI (Reserve Bank of India) has clarified every time that it has not passed any license to any firms to operate such schemes or illegal deals with cryptocurrencies.