One of the world’s biggest digital currencies Bitcoin, surpassed $22,000 for the first time today, achieving yet another milestone in what’s been a jaw-dropping rally for the controversial digital asset this year.To put things in perspective, the digital currency has almost tripled this year, rising nearly 200% on a year-to-date basis, and has been clocking its one-way rally after a severe crash in March that saw it lose 25% amid the coronavirus pandemic. As investors continue to lap up the new asset, the trading community is beginning to call Bitcoin as the digital gold.
Nonetheless, Bitcoin’s rally has piqued investors’ and financial services providers’ interest. Many Wall Street firms are seeking to capitalize on its gains in a world of rock-bottom interest rates. And Indian banks are taking note too. They are now looking at options like providing finance to crypto exchanges, loans against bitcoin and so on, to cash in on this opportunity.But is the Indian regulatory system conducive enough for investors and bankers to trust Bitcoin?
In this podcast, Kshitij Purohit, lead currency & commodities at CapitalVia Global Research explains what has suddenly drawn investor confidence in the currency after the 2017 and March 2020 crash and should investors in India dump gold and look at Bitcoin as an investment bet?