From round $7,000 on January 1, 2020 to round $17,000 on November 27, 2020, bitcoin has surged through the Covid-19 pandemic. Within the final two month, bitcoin has seen a steep rise – from $10,665 on September 25, 2020 to $19,028 on November 25, 2020 earlier than falling to round $17,000 stage.
However what makes folks take the refuge in cryptocurrency through the pandemic?
“In the pandemic, many Indians have lost jobs, and this has led them to invest in cryptocurrency to earn side income. Moreover, a lot of new professions have emerged in this space – people are becoming traders, technical analysts, or crypto influencers. Many help their friends and family to invest in crypto because not everyone understands crypto. There are various crypto use cases that have emerged in India, and have affected Indians in a positive way,” stated Nischal Shetty, CEO, WazirX.
“Growing price of Bitcoin additionally creates a constructive sentiment, and has pushed retail traders to leap in,” he added.
The most recent surge pushed bitcoins near the very best stage of $19,783 that it achieved in late 2017.
However in case the rupee additionally depreciates, will the price of bitcoin see the shoot up from 2017?
“In the course of the pandemic, some huge cash printing has occurred globally resulting in inflation. The stock markets have additionally been very shaky. Individuals know that stock market situations depend upon firms which have, once more, been affected by the pandemic. So folks transfer their cash to make sure that its value is kind of conserved in a deflationary asset like gold within the conventional system, or Bitcoin within the digital system. Bitcoin has a restricted provide, and is seen as a retailer of value,” stated Shetty.
Cryptoforeign money: How completely different is it from different investments?
Offering his opinion on whether or not traders ought to encash or maintain their investments in cryptocurrencies in India at this excessive stage, Shetty stated, “What I’m seeing is, people are now taking notice of crypto. A lot of people who had bought crypto in 2017 at high rates, and held it it throughout, are getting activated, and everyone about what they should do – hold it or sell it. There’s confusion in the market, and we’ll know more when it stabilises a bit. In case of bitcoin, 60-70 per cent of investors hold it as a long-term investment, a small percentage of them holds it for medium term, and a very small percentage holds it for short term.”