Nikhil Kamath raises concern regarding the Bitcoin saga


Amid all the debate around what’s good, bad and ugly about Bitcoin, Nikhil Kamath raises a very pertinent question, as he asks “if someone buys a nuclear warhead with bitcoins tomorrow, what happens then?”

On Thursday, the Zerodha Co-founder took to Twitter to say: Bitcoin saga, I get the use case, get the distrust over excessive printing of the dollar which is not backed by anything really .(5 tril for 2020 is obscene usa)

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All said and done if someone buys a nuclear warhead with bitcoins tomorrow, what happens then?

Digital currency Bitcoin, created in 2009, had hit $1 level for the first time on February 9, 2011. From then on, exactly 10 years later, it leapfrogged to an all-time high of $48,226.25 on 9 February this year.

This means that if you had invested $1 back then, i.e. 45.53 dollar value, for buying a bitcoin, then it would be worth 35.13 lakh today (value of rupee taken as 72.86 on 9 February 2021).

In comparison, the Sensex has risen 191.76% in absolute terms from 17,592.77 to 51,329.08 during the same period, as per data available with BSE. Spot gold prices in international markets have delivered a return of 35% after rising from $1,364 to $1,841, as per data available with Goldprice.org. In fact, bitcoin was the best performing asset class of the last decade.

In fact, in its most recent update, financial services firm Mastercard on Wednesday announced that it will begin allowing cardholders to transact in certain cryptocurrencies on its network, becoming the latest company to embrace digital assets.

“We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network,” MasterCard said in a blog post.

The firm is also “actively engaging” with central banks around the world on their plans to launch new digital currencies.

Tesla Inc. has also recently invested $1.5 billion in Bitcoin this week, sending the cryptocurrency to a record high.

(With inputs from agencies)

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