It seems the foreign digital cryptocurrency is now becoming a well-known investment alternative for investors in Malaysia. Cryptocurrency, also referred to as digital currency, isn’t new and has been available within the online market for a while. An example of this digital cryptocurrency is Bitcoin. Read this article to learn about investing bitcoin in malaysia.
Over 150 companies globally now accept this currency, like, Japan uses it as tender since April this year. That was the primary major shift for the cryptocurrency market and it’s now labelled to be the currency of the longer term.
This includes Bitcoin which is one the mostly popular cryptocurrency, which 52.6% of cryptocurrency investors in Malaysia have bought.
News reports stated that Bank Negara are preparing guidelines on cryptocurrencies which will be ready by end of this year.
The lack of regulation in Malaysia is seen as a drawback. Once the Government passes a law to regulate it, we can expect to see a further boost in Bitcoin investment.
In fact, Japan now adopts the use of bitcoin with regulations. With it being regulated in our neighboring countries, there is a very high chance we can see more developments coming to our shores soon.
The dangers of investing in Bitcoin
Because Bitcoin and other cryptocurrencies operate through Blockchain technology, the smoothness and anonymity of cash transfer make this a really appealing platform for black market trading and concealment. Criminal activity thrives on this and the latest WannaCry
ransomware hack did not help.
The ransom the hackers want is cryptocurrencies which led to several stocking abreast of this type of cash within the event a future attack might happen.
This was followed up by a hack on the cryptocurrency’s exchanges which disrupted trading. Instead of a full-fledged hack such as WannaCry, this was merely a disruption known as DDoS (denial of service attack), which attacks a server causing systems to slow down, crash and denies people of the service.
A volatile currency
Bitcoin is in the news as they now exceed the magical price of $1,000 for one bitcoin as at January of 2017. Bitcoin is the best-performing currency of 2016. By increasing a huge 120% in value, it exceeds the 20% interest that the Russian Ruble and the Brazilian. Also, India’s demonetization policy as well as China’s crackdown on corruption attributes to spikes.
Being a volatile currency means the swings up and therefore the swings down are often equally large, causing you to realize plenty and lose big.
Can you really make money when you Invest Bitcoin in Malaysia?
In the early days,there was hope for the potential of cryptocurrencies to be the future of money. However, with so much volatility, many governments still need to add some form of regulation to it. It leaves much to be desired before it starts being accepted globally.
The Star reports, “Bitcoin on June 11 surged to US$3,041 a coin and subsequently fell toUS$2,419 as at 6.45pm yesterday, wiping off US$600.”
For risk-averse investors, Bitcoin does appears to be a big gamble. And therefore, the lack of transparency makes it hard to understand. Also what’s happening with the digital currency and whether it is a bubble, or not. The value of a Bitcoin is such a rollercoaster and with swings so large (up or down), you’ll find yourself in financial losses.
Similar to commodities and other currencies, it does not create money or anything of value. The only way to make money is from appreciation. This is different from deposits, stocks and bonds, which even if the price stays the same, earns you interest or dividend.
At the end of the day, you can gain money, but when it dips, you can lose a lot. The choice to take a position in Bitcoin is yours and depends on your risk appetite. But before you start investing in Bitcoin, we propose researching digital currency. And, familiarizing yourself with its trends and the way it works. That way, you know your way around in the bitcoin investment venture. If you want to get regular updates and join our special cryptocurrency group for experts and investors, fill the contact form.