Speculation with Bitcoin and Currencies
By Dr. Lalit Kumar Setia | @drlalitsetia
| drlalitsetia@gmail.com | Created Dec 01, 2017
Investment in Bitcoin:
In the modern age of
Information Technology, the activities relating to speculation have also been
transformed. Honourable Finance Minister Shri Arun Jaitley declared the
investments in Bitcoin in speculative transactions and not accepted Bitcoin as
legal tender, however the Bitcoin is being considered as lucrative investment
due to its acceptance in various countries of the world. The bad habits
are making youth oversee the value system and be greedy. The virtual papers
like bonds, currency agreements, virtual currencies i.e. crypto-currency have
become a point of attraction particularly for those people who are not earning
money with making hard-efforts. Very few people are aware of Crypto-currencies
or digital currencies created and stored electronically in block-chains. The
people having trust in digital life are adopting these currencies with using
encryption techniques to transfer the money at various locations of the world.
There is need to aware people for ethics and values by organizing campaigns.
The cyber crimes are also taking place due to mal-practices in routine works.
Virtual Currency at Risk:
In 2009, a virtual
currency came in the market known as Bitcoin, the world’s first
decentralized currency. The Bitcoin isn’t controlled by any government or
bank. Even the currency can be transferred without paying taxes or at
lowest cost than other means of transferring money.
Disadvantage of Cryptocurrency:
The greatest disadvantage
is its volatility, in January 2013, one Bitcoin was valued at around $14 and in
November 2013, its value peaked at $1,124. It is well known that good
currencies have low volatility, those who are owning unstable currency
(Bitcoin) or accepting it as a form of payment are taking huge risk. Using
Bitcoins need e-wallets, exchanges, and payment processors and even these
IT-based services are still in question due to increasing cyber crimes. The
surge in the price of Bitcoin is due to its illegal use particularly in online
dark net marketplace Silk Road.
Bitcoin is private and
totally anonymous however its popularity has opened the doors for several other
crypto-currencies like Lite-coin, Doge-coin, Peer-coin, and Quark-coin.
These crypto-currencies
have no safety mechanisms and the investors or buyers get a private key or
random words to protect their wallet. In case the key or random words are lost,
the funds are also gone as there is no support to recover or change the
password. If the Bitcoins are stolen and there is no authority to approach.
Let's recall the case of
Mt Gox. when he went to bankruptcy, no one took care of thousand of people
which bitcoin was stolen (according to them). Even the japanese government took
actions against Karpeles and the company.
Even after such
happenings, people are increasingly preferring to be rich by making investments
in Cryptocurrencies. Do you think this as a proper way of earning money? What
would you like to share upon it?
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© 2017 Dr. Lalit Kumar. All rights reserved.
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