RBI has only banned banks from associating with cryptocurrency, not cryptocurrency itself.
Exchanges could provide alternatives such as buying bitcoin for dollars through Paypal. This would, however, push the cost higher as one would have to pay a charge on Paypal to transfer the dollar amount to your bank.
Should you buy bitcoin or stay away?
It depends whether you are speculating with your money or investing.
The fundamental principle of investment is it has underlying which becomes the base for valuation. Say, for example, you are investing in gold, here gold is underlying. If you invest in a mutual fund, stocks invested by a fund manager is underlying assets. When you have underlying you can put various parameters to judge the quality of investment.
Coming to bitcoin, the underlying asset of bitcoin are users computing power’developers and its technology because it has no intrinsic value. Is black chain technology worth putting your hard earning money at risk?
No one knows for sure with a degree of certainty, how bitcoin will shape up!
Will it be the next boom or some other more powerful cryptocurrency will take the lead over bitcoin?. The fear of the unknown is one deep-seated emotion that takes a huge toll on the price of Bitcoin. It had lead to a surge in price and it can lead to bottom it out. I believe that people should be careful because there’s no clear global regulation detailing who should protect investors or the system. Anyone can create an artificial market crisis and the Bitcoin a price can rise. Bitcoin can come to zero if there is no demand one day. And that day Bitcoin mining will be a waste of time and energy.
The rate at which it is surging and is getting a hold on the market it seems like it is not going to end soon but one thing is certain about it that only time will decide whether the Bitcoin market will survive the cut throat competition it is going to get from other cryptocurrencies or it will fade away. The only thing that can be presumed that is the value of the Bitcoin is going to remain the most volatile in the cryptocurrency market in coming years.