Recently, cryptocurrencies have become the most preferred investment option for many people across the globe. The emergence of blockchain technology and the idea of participating in the decentralization of currency options attracts many. However, Zoho founder and CEO Sridhar Vembu does not think investing in cryptocurrency will be a good option in the long run. Responding to a question from a follower on Twitter, Vembu wrote that he prefers investing in metals like gold over bitcoin because it is not easy to make a lot of precious metals.
The follower, in his question directed to the CEO of Zoho, asked why Wembu chose to buy gold over bitcoin to protect himself from inflation, even though bitcoin’s asset was stronger than gold.
Vembu, in his answer, compared the properties of gold and cryptos such as bitcoin, whose value was primarily driven by psychology. He argued that blockchain-based currencies were easy to create and that many of them were already in the market, whereas in the case of metals like gold, there was a limit to the quantity you could produce. He said that the previous set of transactions that made up bitcoin had no particular sanctity and was largely driven by psychology.
Wembu believed that all flat currencies would eventually migrate to blockchain technology and this would not be a favorable scenario for bitcoin. In his Twitter thread, Wembu also challenged the notion that bitcoin was not being subjected to government control.
The entrepreneur suggested that since the value of bitcoin was largely driven by psychology, military/state support automatically became an important part of psychology and the government still had powers.
Many countries, including China, have banned investments in cryptocurrencies. India is also planning to introduce regulation of crypto trading, and a bill regarding the same is proposed in the current winter session of Parliament.
The cryptocurrency market in the country reportedly has an investor base of over 100 million which is bigger than the number of crypto investors in the US. However, the value of investment in the US is projected to overtake India.
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