Cryptocurrency has been the talk of the town lately, from suburbs to metro cities.
Is it possible for most people to invest in it to this day or not? Is it safe? What is the future of this? What can you do about it if you have already invested? Can you invest anymore? Don’t you It comes from such a chaotic state of mind.
Meanwhile, we spoke to Sokkalingam Palaniappan, Director, Prakala Wealth Management, about this.
It is better to stay away
Palaniappan says that as complaints and complaints about cryptocurrency in India are on the rise, it is better for the middle class and grassroots to stay away from it until it is regulated.
Impossible investment
Recognized investments in India include stock market, mutual fund and commodity. But people are afraid to invest in them. If so, cryptocurrencies are currently the only investment option that is not feasible. Because the stock market is as regulatory board for mutual funds. We can appeal to the Board of Control, even if there is a problem or fraud. You can file a complaint. May take legal action.
Fear of theft
But there are no such authorized exchanges as for crypto. It comes from the position that an individual can introduce a cryptocurrency. It uses blockchain technology.
But it is worth noting that in a recent incident, a person who acted as an intermediary staged an incident of stealing cryptocurrency from another person’s account. So it is important to understand that security here is not enough.
Wrong thing
And among the middle class people are investing in middlemen saying words of desire that your money will triple and double soon. Even salaried people, especially those earning 15,000 – 20,000 rupees, borrow and invest in millions, which is a bad thing.
What about the crypto bill?
And even if it was stolen, how do you report who stole it? So with a clear understanding of cryptocurrency, it is a risky investment in the absence of a regulatory board.
Two things are expected in the cryptocurrency bill, especially with regard to India. One can ban cryptocurrencies. The second may come up with regulations to regulate cryptocurrencies. This will bring GST into the income tax.
Can you invest? Don’t you
Middle class, lower class people do not invest in cryptocurrency for now. If the same big rich people can invest half a percent of their total assets, 1%. Because 1% of the total does not have a large impact. Still others will borrow and invest as someone said. That was the biggest mistake.
When can it be done?
The Government of India is currently planning to bring in a digital currency of its own however it’s not still meant for common man. So we can think about it if the government comes up with restrictions and reforms. It is noteworthy that cryptocurrencies are banned in China, the world’s second largest economy.
Why recognition in the United States?
Recognized in countries such as the United States. The question may arise as to whether even large corporations such as Tesla have invested in it. But the Tata Group founded TCS at a time when technologies were not developing in the early days. Today TCS has become one of the largest companies in the Tata Group. It has grown enough to withstand it.
That is not to say that cryptocurrencies are investments that should be avoided. And companies like Tesla have not invested even a quarter or half of their total assets. So even if those investments are a problem they can afford it.
Restrictions are required
So there is still a lot to align. Thus carving and polishing, making many reforms, a common control center should be formed, like SEBI. Only then will the problems go away. There are currently fears that cryptocurrencies will be used for misconduct. So controlling it will reduce such problems.
So far, cryptocurrencies have been a dubious investment. So it is better not to invest than to leave the morning without knowing the depth, and the volatility in cryptocurrencies is much higher. It cannot be afforded by retail investors, small investors. So it is better to wait and see if you can come up with something out of the ordinary.
Is it equivalent to gold?
For those who think that doing so is the way to go, try doing 1% or 2% of your surplus.
Similarly it is said that crypto may become an investment equivalent to gold in the future, when asked about this surely crypto cannot come as gold. Because gold is beyond investment and has become a popular jewelry. It is also a physical metal that is mined underground. But cryptocurrencies are not like that. So cryptocurrencies can never match gold. He says if the government introduces digital currency then we can think about it.
