Bitcoin is soaring 204% in 2020. Should you invest?

Bitcoin has increased by about 20% this week, cutting $ 22,000 for the first time to reach its highest ever of $ 22,158.40. The largest cryptocurrency in the world has soared over 13% in the last 24 hours. So far, the bitcoin is up 204%. Why this surge? These types of earnings can attract any investor to invest in bitcoins. Should you invest? Which is the right way to invest for retail investors?

“Cutting Bitcoin above $ 20,000 is a milestone in a year that saw many unusual things in the global economy. This is mainly due to a number of world-renowned investors, organizations putting their weight behind Bitcoin. The earlier doubts have now been superseded by the widespread spread of “Acceptance and recognition of Bitcoin as a strong investment option,” said Sumit Gupta, CEO and co-founder of CoinDCX.

Organizations investing in Bitcoins

Institutional adoption of the cryptocurrency is happening. It’s not just corporations but financial institutions selling gold and buying bitcoin, which has grown confidence in investors’ minds.

“Companies like microstrategy and massmutual insurer have invested $ 475 million and $ 100 million respectively in bitcoin. Also, big businesses like Paypal are now allowing its customers to access crypto. Regulatory concerns are turning into favorable in different parts of the world. All these developments have built. a lot of confidence in the minds of the investors leading to a price rally, “said Ashish Singhal, CEO and Co-Founder, CoinSwitch Kuber.

“Massmutual, an insurance giant, recently made its way into Bitcoin investments. In addition, billionaire hedge fund manager Alan Howard is among the supporters of a new institutional investment firm called One River Asset Management, which is eyeing as much. as a $ 1 billion allocation to bitcoin, “said Sumit Gupta.

Cryptocurrencies like Bitcoin are the future and will play an integral role in the dynamics of world finance, believe the experts. They expect bitcoins to cross 1 trillion market cap soon.

“There are atleast 20 companies worldwide that own bitcoin on their balance sheet. And loyalty, black wolf, and others who manage trillions in assets are bullish on bitcoin. With additional institutional adoption we are seeing bitcoin at easy to cross the 1 trillion market cap that is currently below 400 billion. That basically pegs BTC’s price to 50K USD in the next 12 months, “said Gaurav Dahake, CEO, Bitbns.

Should you invest in Bitcoins?

Evaluate your risk appetite and choose investment options wisely, say investment experts.

“Bitcoin is a very risky investment option and it is not a good idea to put the majority of your investment in Bitcoin. Bitcoin prices have been extremely volatile. There is not enough data for experts to analyze, so people invest with knowledge imperfect and joins the herd of speculators, “said Neeraj Singh, a registered investment adviser.

Some experts say getting it early would be beneficial for Indians. Experts suggest investing in a disciplined manner just like a SIP or systematic mutual investment scheme to reduce the risk of timing the entry in the bitcoins.

“Consumers should invest wisely through SIPs in bitcoin because bitcoin is fairly volatile. But for the most part, protecting wealth and ensuring that the value of their currency stays and does not depreciate bitcoin exposure is crucial,” said Gaurav Dahake.

Investment advisers warn investors not to be influenced by the great returns. They say, bitcoins are very dangerous and not easy to understand.

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