Cryptocurrencies, off lately, seem to have become the hottest choice of investment for a lot of people around the globe. The idea of participating in the emergence of blockchain technology and the de-centralisation of currency options fascinates many. However, Zoho founder and CEO Sridhar Vembu doesn’t think that investing incryptocurrency will be a good option in the longer run. Replying to a follower’s query on Twitter, Vembu wrote that he prefersinvestment in metals like gold over Bitcoin as it’s not easy to make a lot of precious metal.
The follower in his query directed to the Zoho CEO had askedwhy Vembu preferred buying gold over Bitcoin to protect oneself against inflation, even when Bitcoin’s properties were arguably much more sound than gold.
Vembu, in his reply, compared the properties of gold and crypto like Bitcoin whose value was primarily driven by psychology. He argued that making up blockchain-based currencies was easier and a lot of them were already there in the market, whereas, in the case of metals like gold, there was a limit to the quantity you can produce. He added that there was no particular sanctity to the past set of transactions that make up a Bitcoin and it was just largely driven by psychology.
Vembu believed that all flat currencies were eventually going to shift to blockchain technology and that won’t be a conducive scenario for Bitcoin.In his Twitter thread, Vembu also challenged the notion thatBitcoins are not being subjected to government control.
The entrepreneur suggested that since the value of Bitcoin was largely driven by psychology,military/state backing automatically became a key part of psychology and the government still had the powers.
Investment in cryptocurrencies has been banned by many countries including China. India too is planning to introduce regulation of Crypto trading, and a bill regarding the same is proposed in the current winter session of the parliament.
The country reportedly has an investor base of over 10 crores in the cryptocurrency market which is bigger than even the number of crypto investors in the US. The value of investments in the US, however, is estimated to outstrip India.