Long Bitcoin

I came to know about bitcoin back in 2013 when 1 BTC was equivalent to $100. Fast forward 4 years down the line it has given stupendous returns of more than 10 times. Yes! 1 BTC today is in the range of $1000.

I had discussed this with Sandeep back then and we loved the idea. I actually wanted to invest in bitcoin for I was losing confidence in gold back then. And see how things turned out, today bitcoin and gold are in the same bucket treated as safety heaven for risk averse investors.

However, I still think that another mega rally has just started which is going to dwarf the current rally in bitcoin. As per bitcoin chart, you will observe that it has made a beautiful cup and handle pattern @ $1000. This is a very strong bullish signal. But I still can't invest.

The problems with investing/doing business in bitcoin are many folds -

  1. You are operating in a grey area especially in a country like India where the law enforcement unit simply don't understand limited liability company / partnership and catch hold of the CEO directly via an archaic rule based on loose interpretation.
  2. There is no proper instrument to go long on bitcoin as you can do for stocks. Afterall, it is a currency. You might think that you can go long on an exchange traded index or for that matter a company with highly invested resources in bitcoin, but then it is different ball game. 
  3. An exchange can shut down overnight. A breach can close a bitcoin company in seconds. You can lose your hard disk and hence the bitcoins. There are just too many loop holes and risky things that can bring you down anytime / any minute.

Maybe a referral program can help here that pays you back in bitcoin. But the problem with the referral program is most of them want you to keep your bitcoins in safe locker with them. This is equivalent to parting with your bitcoins considering the security threats that those little bitcoins pose so seriously.

Bottomline, I missed the rally then and I am going to miss the rally again. I don't think there is a legal, secured, risk-adjusted way to go long on Bitcoin staying in India. Open for ideas ...