April 6, 2021 12:22 PM
Bitcoin Surged Over 800% in FY21; The Sensex and the Nifty made some impressive double-digit gains in the financial year 2020-21 but the dizzying rise of the bitcoin, the world’s leading cryptocurrency, makes their journey look like a crawl at best.
Bitcoin surged 816 percent in FY21 from $6,412.5 on March 31, 2020 to $58,763.7 on March 31, 2021, data available with investing.com shows. After March 2020, bitcoin started to surge and even went past $61,000 briefly. Investors lapped up bitcoin as an alternative asset class, anticipating strong gains and also as a hedge against inflation.
Besides, millennials who are much comfortable and open to digital payments and cryptocurrencies are also fuelling demand for cryptocurrencies.
Recently, Visa Inc allowed the use of the cryptocurrency USD Coin to settle transactions on its payment network. This came after Elon Musk’s Tesla began accepting bitcoin to purchase its electric vehicles.
Bitcoin Surged Over 800% in FY21; Earlier, Morgan Stanley said it would offer its wealth management clients access to bitcoin funds, adding to growing the acceptance of digital currencies by the mainstream financial industry.
So, should the first cryptocurrency, which was launched in 2009, be part of your portfolio in FY22? First of all, one needs to understand that the Indian government is not open to trading in cryptocurrencies.
As reported by Moneycontrol, the government is considering blocking internet protocol (IP) addresses of cryptocurrency companies and exchanges as a part of its bill to ban digital currencies.