Bitcoin, a cryptocurrency, is not a new phenomenon. It has been there for around 21 years, starting in the year 2009. However, over the past 12 months its value has surged more than 370 percent. This was even before Tesla’s investment in Bitcoin. And this is not the first time Bitcoin has been in the news for a meteoric rise in its price. In the calendar year 2017, Bitcoin surged from USD 785.40 to USD 19,345.50, giving absolute returns of a whopping 2,363 percent.
Originally perceived as a digitally encrypted currency alternative to the traditional currencies controlled by central banks, Bitcoin is now attracting traction from even mainstream investors. Given the gains, should you park your money in it? Let us understand what Bitcoin is all about and how it works, including its journey from 10 cents to USD 47,545. It would then be interesting to explore the subject of whether it is worth investing in Bitcoin while studying the associated risks and rewards. Bitcoin may be here to stay but the question is whether it would be worth adding to your portfolio.
Defining Bitcoin
Bitcoin was created in January 2009 as a currency which is in a digitally encrypted form. This was in the wake of an idea set out by a pseudonymous Satoshi Nakamoto in a whitepaper. The original identity of the person or persons who created the technology is still a mystery. The whole idea behind Bitcoin was to lower transaction fees when compared with traditional online payment mechanisms. Moreover, unlike government issued currencies, this currency is operated by a decentralised authority. Bitcoin is known as cryptocurrency.
This story is from the March 01, 2021 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 01, 2021 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Two to Tango: Indian IT Meets Nasdaq?
The outperformance of NASDAQ is not broad-based and is primarily led by a few companies that are dominant in new emerging technologies and are leading the wave. Indian IT companies and many other traditional IT companies will see a temporary slowdown till the time they do the catching up either organically or inorganically
It's Time To Exit From 'Those' Stocks!
Were you among the investors who sold stocks during the recent market panic, or shouldn’t you have followed the herd mentality? In the unpredictable world of stock markets, recognising the opportune moment to sell can be as crucial as identifying the right time to buy. Mandar Wagh delves into the concepts of intrinsic value and overvaluation, offering insights into strategies investors can employ when their stocks are deemed overvalued
Stress Tests: The Mandate, The Results & Insights
Now that the Securities and Exchange Board of India SEBI) has made it mandatory for fund houses to undertake stress tests for mid-cap and small-cap funds to see if redemptions can be made within a short period in the face of any financial crisis, it is important for investors to Know more about how such stress tests are conducted and what they reveal
Powering the Future: Opportunities in Green Stocks
As the world grapples with the challenges of climate change, the spotlight turns towards renewable energy stocks and their pivotal role in shaping a cleaner, greener future. Kamal Mansuriya analyses the transformative potential of renewable resources, driving both environmental stewardship and economic growth.
Leverage Like a Legend: Warren Buffett's Japan Gambit and Lessons for Investors
Imagine turning a billion dollars into twelve, all without risking a dime of your own. Sounds like financial fiction, right? But that's exactly what investing guru Warren Buffett pulled off with his audacious bet on Japan. In this special story, Vaishnavi Chauhan dissects the unconventional strategy Buffett employed to leverage borrowed money and generate sky-high returns in the Land of the Rising Sun.
The Art Of Identifying Market Winners
When it comes to choosing the right stocks, Dr. Ruzbeh Bodhanwala and Dr. Shernaz Bodhanwala, faculty at FLAME University, Pune suggest that no single metric or ratio should be used to make an investment decision. There is no substitute for thorough fundamental analysis and one should understand the companies' risk profile before investing
Civil construction company gets new order worth 534 crore from Jodhpur Vidyut Vitran Nigam
H.G. Infra Engineering Limited (HGIEL) informed that the company bagged an order worth ₹ 534 crore from Jodhpur Vidyut Vitran Nigam Ltd.
This solar power EPC company achieves the milestone of over 1,000 MW contracted orders globally
Scorpius Trackers, a leading solar tracking technology S company and a of Gensol company and a subsidiary of Gensol Engineering Ltd achievement of reaching a significant milestone of 1000 MW + in contracted orders across India, Japan, Saudi Arabia and Uganda solidifying its position as a key player in the global solar tracking industry.
Recently listed small-cap company bags two orders worth USD 60,43,800
Mukka Protein Ltd has secured purchase orders valued at USD 60,43,800, equivalent to approximately ₹ 50.39 crore from Ever Light Oil Industrial Co. Ltd Land Uni Best General Trading FZE for the fish meal supply.
How To Identify A Market Bubble
While explaining the term market bubble’, this article by Vaishnavi Chauhan elucidates how by prioritising fundamentals, maintaining a long-term perspective and resisting emotional impulses, investors can navigate market bubbles more effectively and safeguard their portfolios against unnecessary risks
