The Indian economy is one of the fastest-growing economies and has a GDP growth rate above 7%. As you all know, bitcoin and gold are considered traditional forms of investment. Visit the quantum ai for more information on bitcoin trading.
As the Indian economy grows, people look for alternate ways to save their money. If you can invest your money into bitcoin or another cryptocurrency, it offers enormous returns on investments.
4 Positive ways how bitcoin benefits the Indian stock market
1) Hedge on the currency fluctuation
Bitcoin has enormous volatility in terms of its price, so it is an excellent way to hedge your investments. For example, if you have 100 INR and your friend tells you that bitcoin is increasing rapidly, why don’t you invest some money there? If you were not using or investing in any cryptocurrency, then at least you would have lost Rs 100.
On the other hand, if you had invested in bitcoins with INR 100, then most probably after 2-3 months, your investment in bitcoin with Rs 100 would have increased to 110 or 120, which is a massive return of 10-20% on your initial investment with no extra effort. This hedging strategy can be used in stocks as well.
This way, you can expect the same returns on your investments with no extra work, which will help you increase your money without doing anything different.
2) Get bitcoins for free through trading
This is another way how bitcoin is helping people save their money. You can quickly get bitcoins for free if you are familiar with share trading, forex trading, etc. Then, the only thing you need to do is find out the bitcoin rate and observe it for a while.
If you buy bitcoins with fiat currency, then there is no other fee than 1% of transaction value, so if you can get a 10% return on your money by doing nothing extra, why not do it?
3) Investment in ICOs (Initial Coin Offering)
ICO is another way to make money with bitcoins. For example, if company XYZ launches its cryptocurrency and it has some unique features like transaction fee will be less than 0.01% etc. then it is likely that the value of its cryptocurrency will increase rapidly after being listed on cryptocurrency exchanges because many people are looking for such cryptocurrencies to invest their money into.
4) Make legal money through gambling
If you are good at gambling, you can make a lot of money by investing in your fiat currency. For example, people are earning huge returns on bitcoin gambling where they bet bitcoin against another cryptocurrency or another fiat currency.
The best part is that you do not need to know about aspects of cryptography for performing transactions in bitcoins, unlike Ethereum or ripple.
3 Negatives of bitcoin on the Indian stock market
1) Attracts government regulations because of its decentralized nature
Because bitcoin is working, it is easy for the Indian government to ban this cryptocurrency. For example, if you are earning money through bitcoins, then there is no way for the Indian income tax department to track your money unless they know about which online platform you have purchased bitcoins.
2) There is no support from banks or other financial institutions
There are many other cryptocurrencies to invest your money in other than bitcoins. Still, the biggest drawback of investing in bitcoins is that there will be only a few online platforms where you can buy this cryptocurrency. Because of these limited options, especially if you plan to invest your money, you may face liquidity issues.
3) Higher risk of hacking because of its decentralized nature
If your bitcoins are stored on an online platform, especially those not popular among people, then there is always a risk that someone can hack into the system and steal all your cryptocurrencies.
Conclusion:
Bitcoin is an excellent cryptocurrency, and it is doing a great job of providing people with opportunities to make money by doing nothing extra. If you are buying bitcoins for their future potential, then there is no doubt that it can give you good returns on your investments but always remember that higher risk comes with high reward.