Bitcoin Bubble: ETMarkets Investor Guide: Is There a Bitcoin Bubble After Climbing 150% in 2020?

Hi, this is ETMarkets’ Investor Guide, a show on asset classes, market trends and investment opportunities. This is Atul PM.

Bitcoin, the world’s best-known cryptocurrency, crossed the $ 18,000 mark on Wednesday, hitting its highest level since December 2017, up more than 150% this year. In India, the currency jumped to over Rs 13 lakh from Rs 5.12 lakh on December 31 last year.

Some market watchers believe that this time around is different for the digital currency, as there are more genuine reasons for the price increase such as US hedge funds adding crypto assets to their balance sheets.

Previously, Bitcoin had grown more than 1,000% in 2017 to approach the $ 20,000 mark by December of that year, before a spectacular dip wiped out 70% of its value next year.

Has bitcoin reached the bubble zone again or will the ongoing rally hold up this time? How can a small investor in India expose themselves to cryptocurrency? We caught up with Sathvik Vishwanath, CEO of Unocoin, India’s largest ecosystem for trading various cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and Tether (USDT), to understand what awaits us for these products.

Welcome to the show, Mr. Vishwanath
1) What is driving the current bull run in bitcoin?

2) How is this rebound different from other similar rallies?

3) Will the ongoing rebound sustain itself? Can we still see a sharp decline like the one we saw in 2018?

4) How do you expect the trend to evolve over the next five years?

5) How big is the cryptocurrency market in India?

6) What other cryptocurrencies seem attractive to you?

7) How can a small investor invest in Bitcoin? Is it possible to invest in fractions of it?

Thank you Mr. Vishwanath, it was indeed a very insightful conversation.

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