One of the world’s largest digital currencies surpassed Bitcoin, at $ 22,000 for the first time today, achieving yet another milestone in what has been a jaw-dropping rally for the controversial digital asset this year. To put things into perspective, the digital currency has almost tripled this. year, rising nearly 200% every year so far, and has been clocking its one-way rally after a serious accident in March that saw it lose 25% in the middle of the coronavirus pandemic. As investors continue to wrap up the new asset, the trading community begins to demand Bitcoin as the digital gold.
Nevertheless, the Bitcoin rally has piqued the interest of investors and financial service providers. Many Wall Street companies are trying to capitalize on their earnings in a world of underlying interest rates. And Indian banks are taking notice too. They are now looking at options such as providing funding to crypto exchanges, loans against bitcoin and so on, in exchange for this opportunity. But is India’s regulatory system favorable enough for investors and bankers to trust Bitcoin?
In this podcast, Kshitij Purohit, lead currency and commodities at CapitalVia Global Research explains what has suddenly taken investor confidence in the currency after the 2017 and March 2020 crash and whether investors in India should dump gold and look at Bitcoin as an investment bet?