Bitcoin: The Next Revolution Or A Bubble?

The brouhaha over cryptocurrencies and its skyhigh prices are luring Indian investors, says Shipra Singh

- Shipra Singh

The frenzy around Bitcoin and other cryptocurrencies has grown manifold among Indian investors in the past one year; just like its prices. Bitcoin prices have grown 18-fold in the past one year, from $900 in January 2017 to touch $20,000 in December 2017. Despite regulations still being a grey area, the price surge and the ongoing noise around cryptocurrencies being the next revolution are making it tough for even conservative investors to resist the boom.

Bitcoin, the largest of cryptocurrencies, is a decentralised digital token, which is not backed by any central bank or single administrator. Cryptocurrencies work on blockchain technology, which is like a virtual ledger that records cryptocurrency transactions on a network of computers.

The top two domestic virtual currency exchanges, Zebpay and Unocoin, have combined downloads of 1.5 million on Google playstore and according to a senior executive in Unocoin, investors on Unocoin exchange are buying Bitcoins worth ₹30,000 daily.