Note to readers: Bitcoin is becoming popular by the day. It has captured the imagination of many young investors and millennials. But keeping aside its meteoric rise, what is Bitcoin really? And why is the Reserve Bank of India worried? Moneycontrol’s two-part series demystifies Bitcoin and how they work. Today’s story talks about Bitcoin as an investment option.
In 2017, Delhi-based Rahul Mishra, 34, invested in the Bitcoin after seeing his office colleagues do so. And like many others, he understood precious little of this new animal back then. The Bitcoin’s price had already surged to Rs 3.61 lakh, up from Rs 65,000 at the start of that year. Every month, he kept investing Rs 25,000; he had diverted his on-going mutual fund systematic investment plans to the Bitcoin.
Just six months later, he got a rude shock. The Reserve Bank of India (RBI) issued a circular banning cryptocurrency trading in India. It directed all legal entities regulated by the RBI to not deal in virtual currencies or provide services to any individuals or businesses dealing in cryptocurrencies. Investors panicked, Bitcoin’s price in India crashed. In a matter of seven days, its price fell from a high of