Jincy Samuel is the co-founder of Coinsecure, a company which is focused on building the Bitcoin and blockchain eco-system for India. Coinsecure has an array of services ranging from the exchange, where people can buy and sell Bitcoin for INR to a wallet where Bitcoin can be stored in a an easy, safe and secure fashion.
What she is doing couldn’t be more relevant today. Cryptocurrency Bitcoin’s value is rising up, up and up. This she says is because the US-based Commodity Futures Trading Commission has allowed two exchanges to start trading in Bitcoin contracts.
The maximum number of bitcoins that can ever be in circulation is 21 million, that number is expected to be attained by 2140.
Bitcoin was just worth $1000 in January. Earlier this month it was at $10,000 and it is now sitting at $16,601.77. The frenzy around Bitcoin is so high because there is also a cap on the number of Bitcoins that can be mined. The maximum number of bitcoins that can ever be in circulation is 21 million, that number is expected to be attained by 2140. Bitcoin is also increasingly being accepted as a valid means of payment.
Why the surge in Bitcoin pricing?
The surge in Bitcoin can be attributed to the fact that the US-based Commodity Futures Trading Commission (CFTC) has allowed two exchanges to start trading in Bitcoin contracts. The Chicago Board Options Exchange (CBOE) has already started futures trading as of Dec 10th and the Chicago Mercantile Exchange Group (CME) will be starting on the 17/ 18th of December this year. This means there is an aspect of legitimacy given to this cryptocurrency, thus pushing prices on an upward curve.
Have you seen an increase in people who are buying Bitcoin through Coin Secure? What kind of profile of people are buying?
Definitely yes!! We usually see a majority of traders buying and selling leveraging from arbitrage. But there are also others, who have heard about the price surge and who want a share of the pie, who have started investing. So we see newbies, people who want to treat Bitcoin as a long-term investment coming onto our platform.
How will the launch of Bitcoin futures trading affect the currency?
Though there have been several warnings around the price surge, Bitcoin’s future could slow down the pace at which prices are currently increasing. Maybe they will even stabilise in the long run. What we are expecting to see is a relatively less volatile market.
What are the risks of investing in Bitcoin? Are prices in a bubble?
The risk associated with Bitcoin is it’s volatility. We are seeing a surge in prices, and with that we see more people thronging to it. While it is a good thing for us as a business, I think it’s imperative for an investor wanting to invest in Bitcoin or any other cryptocurrency to understand what they are investing in. There are risks associated with most investments and one should be aware of the same before making an investment decision. It is also important not to put all your eggs into one basket. Spread them out wisely and lastly, never invest more than what you can afford to lose. Are prices in a bubble… while most say that it is.. we’ve seen the price holding up as of now. So I can’t really call it a bubble for now.
Source: Daily Express