Popular cryptocurrency Bitcoin has seen a surge in its value on several occasions. The digital currency has been creating many all-time highs this year. With every passing day, every other investor is either talking about the digital currency or actually going out and buying it.
But in India, the legality is such that very few may have been able to get their hands on Bitcoin. The main issue is that there are no regulations around cryptocurrency. While the Indian government is encouraging the use of the technology behind cryptocurrency, blockchain, in various businesses; the government or the regulator have given a very confusing message around cryptocurrency.
But despite all these odds, there are around 50 lakh traders (as per data in 2018) involved in digital currency trading in India.
If an Indian investor was able to invest in one Bitcoin during the day the lockdown was announced in India that is 24 March 2020.
According to Coinmarket cap, on March 24, Bitcoin was trading at a low of USD 6,411.07. So, an Indian investor could have purchased a Bitcoin for around Rs 4.65 lakh.
Today, if he or she decided to sell off that Bitcoin, he or she would have sold it for around USD 47,000. In Indian currency terms, the investor would have made around Rs 34 lakh. A surge of over 630 per cent.
If an Indian investor would have invested on February 13, 2020, then the investor would have ended up spending around Rs 2 lakh more. This is mainly because on February 13, the value of one Bitcoin was USD 10,116.16.
Gold as an asset class also did not give that much of return even though gold also rallied since the lockdown. Like the stock market, cryptocurrency is highly volatile in nature. But this latest popular asset class has give high yields to investors.