Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Gulf News has published an interview it conducted with a number of UAE-based bitcoin investors. The interview reveals insight into the diverse avenues through which the investors entered the bitcoin markets, discusses what risks are perceived to be associated with bitcoin and cryptocurrency investments, and explores the expectations of investors for what bitcoinâs future may hold.
Also Read:Â Chinese Exchanges Seek Second Chance in Japan and Other More Crypto-Friendly Countries
The Featured Investors Predominantly Come From a Background in Finance
The investors became involved with bitcoin through a variety of avenues, and include both veterans and new entrants into the cryptocurrency markets.
Dubai-based finance professional, Rohan Advani, states that he was first inspired to enter the bitcoin markets by his âson-in-law [who] was trading in bitcoins in Australiaâ earlier this year. Mr. Advani states that he first âpurchased bitcoins in June, and [is] now sitting on decent money.â Mankesh Walia, a motivational speaker based in Sharjah, recounts having been âguidedâ by âsomebodyâ in his decision to invest in bitcoin during its infancy. Mr. Walia states that he âinvested in Bitcoin and⊠came out in profit of 90 per cent in 2011â, adding that âpeople who bought Bitcoins earlier are minting money.â
Differing Expectations for Bitcoinâs Future
Henry Carvalho, a finance executive based in Abu Dhabi, states that he âfollowed bitcoin for few years before deciding that [bitcoin] is the future.â Mr. Advani predicts âa good future in it at least in the short-termâ for bitcoin, adding, however, that âwe may see a correction in the next 15 days or so. If liquidity permit[s] I will invest more.â
Mr. Carvalho now believes that bitcoin offers the âbest [return on investment] for retirement,â and expects that âmore and more countries which will accept it even though there is resistance for now.â Mr. Carvalho predicts that âwithin 15 years the price will hit more than $500,000 per Bitcoin,â adding âbased on the demand and supply it can break that barrier too.â
Many of the Earlier Market Participants Hold a More Cautious Outlook for Bitcoin
Hitesh Khatwani, an Abu Dhabi-based banker, states that he âexpects[s] a correction and a consolidation in 6-7 months,â adding that he doubts bitcoin will âsee much higher levels from this point.â Mr. Khatwani states that he entered the markets âwhen bitcoin was at $700⊠sold out everything at $5,800 levels,â and now âplan[s] to re-invest that money in Indian stocks later.â
Khawar Mahmood, a partner of Dubai International Real estate, describes the market as being âvery risky now,â stating his expectation that âthere might be a crash anytime.â Despite having profited in 2015 with bitcoin, Mr. Mahmood holds a cautious outlook for bitcoinâs price, stating that he âlearnt [his] lessonsâ from getting âburntâ after âinvest[ing] Dh2.5 million [approximately $400,000 USD] in 2010 in pounds, Canadian dollar and crude oil. Mr. Mahmood predicts that âprices will fall to $3,000.â Mr. Walia offers a more ominous prediction for bitcoin, stating âthere is something called Newtonâs Law, so if it has gone up, it will come down.â
Price Volatility Is Cited by Most Featured Investors as the Primary Risk Posed to Bitcoin Investors
Nivita Pande, a banker based in Abu Dhabi who has invested in ethereum at approximately $40 USD, has âseen immense fluctuations. If I get good profit Iâll leave,â adding âIâm not very confident on the compliance of cryptocurrencies. I had a negative opinion about it, but I told myself let me just try.â For Mr. Walia, the risk of heavy price fluctuations is an inevitable consequence of the potential gains also offered by the bitcoin markets. Mr. Walia states that âthis bubble is not bursting, and everyone is piling in money into it,â however, adds that âthere [is] heavy profit, it means it will have heavy risk.â
Mr. Khatwani, states that âthe huge fluctuation in prices is the biggest risk. I think when the general public gets into a stock or any other asset class, it is the time to sell. The retail investors generally are the last one to enter.â
Bitcoinâs Legal Ambiguity in the UAE
In recent days, the governor of the UAE central bank, Mubarak Rashed Al Mansouri, described bitcoin trading as a âtolerated practiceâ in the UAE. Gulf News describes such as comprising an activity âthat is legally prohibited according to the UAE Central Bankâs regulations, but one where regulators take no measures against those who practice it (i.e. those who buy or sell bitcoin and other virtual currencies).â
Bitcoin prevails in the UAE as a âtolerated practiceâ despite being formally prohibited. Sally Sfeirer-Tait, a partner at international law firm, Clyde & Co, told Gulf News that the UAE âCentral Bank issued in January 2017 Stored Value Regulations, which contained a blanket prohibition of virtual currencies and transacting in virtual currencies.â
Do you think that bitcoin trading will continue to occur in the UAE despite it being formally prohibited? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
We got it all at Bitcoin.com. Do you want to top up on some bitcoins? Do it here. Need to speak your mind? Get involved in our forum. Wanna gamble? We gotcha.
The post UAE-Based Investors Reveal Outlook for Bitcoin Markets appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.