1 min read.Updated: 21 Nov 2020, 10:45 AM ISTAvneet Kaur
Bitcoin extended its eye-popping rally, approaching $19,000 for the first time in almost three years.
Bitcoin extended its eye-popping rally, approaching $19,000 for the first time in almost three years. Interestingly when there is a movement in Bitcoin price, a similar movement is also witnessed in other top cryptocurrencies, for instance Ethereum also has been witnessing an upward trend since Q1 2021. The upswing in Bitcoin has soared the volume of trades. The crypto is attracting new investors as well.
"The past 15 days have seen a meteoric rise in the value of Bitcoin, with the price momentarily crossing $18,000 on November 17. At ZebPay, we have seen a 46% increase in BTC-INR volumes from November 5-17, and a 48% increase in the number of unique customers trading BTC. The price spike is also attracting new, first-time investors in Bitcoin. ZebPay's app downloads have shot up 98% in the past two weeks," says Vikram Rangala, Chief Marketing Officer at ZebPay.
What's interesting is our withdrawals have stabilised, adds Vikram Rangala. This shows that more and more people are beginning to see Bitcoin as a store of value and reliable long term investment, rather than trading for short-term gains.
Experts suggest to invest in a disciplined manner just like SIP or systematic investment plan in mutual funds to reduce the risk of timing the entry in the bitcoins.
"At ZebPay, we encourage dollar cost averaging - investing fixed amounts at regular intervals. If you had invested 1,000 rupees per month since November 2019, you would have seen an average 87% ROI, with the present value being approximately ₹23,000," says Vikram Rangala.
Bitcoin investments gained the eye of tech-savvy investors who have a complete understanding of the product. Besides companies like PayPal and Mastercard have opened up its network to bitcoin and other cryptocurrencies. Bitcoin has risen by nearly half since PayPal's move.
The asset has also been compared to gold and is now used as store of value.
"The reason behind Bitcoin's comparison with gold is that both are scarce and have played a shield against inflation. In 2020 alone, Bitcoin has given 130 percent return exceeding gold’s near 30% jump. In future it could compete more intensely with gold because of its fixed supply and increasing demand due to global acceptance," says Sumit Gupta, Co-founder and CEO, CoinDCX.