As per the interactions with couple of existing investors, I would like to bring the below mentioned information for the benefit of all.

Let me clear, I do not have any knowledge with regard to bitcoins. Whatever I mentioned is by reading and gathering data from various sources. Hope it will be useful.

Investing in Bitcoins:

They are a currency or digital payment system. They are not investments. Mere holding of currencies will not call as investments. Do we treat just holding of our rupee or dollar as investments? No.

Why?

For a simple reason, that they do not generate any income either in the form of rent, dividend or interest. Therefore they do not qualify as investments.

We use money as medium of exchange, store of value. But bitcoin does not perform any such activity.

It’s legal status is opaque. It is crypto currency(secretive) Several governments banned it. In India, RBI also given couple of warning to general public through various forums.

In the month of Feb’17 it cleared once again that it hasn’t authorized bitcoins.

“ It warns those investing in virtual currencies like Bitcoins are exposing themselves to potential financial, legal and security related risks.”

It has nothing to do with investment. They are based on a technology called blockchain. This technology is expected to benefit the software development and enable business to function effectively and securely.

Equity Markets: With the run up in equity market, there are many small and penny stocks which moved up. Be cautious. Do not fall for them by listening to media,friends, colleagues, neighbour’s etc. More importantly do not invest based on past return of the funds or stocks.

Though equity markets scaled new highs, there are many such stocks which recently eroded the investor’s value in a few trading sessions.

while investing in stocks, one must also remember that a great company is not a great investment if you pay too much for the stock.

This is the time and need to respect asset allocation.

Lastly I once again end with this quote by Howard Marks:

To be a successful Investor, you have to have a philosophy and process you believe and can stick to, even under pressure. Since no approach will allow you to profit in all types of opportunities or in all environments, you have to be willing to not participate in everything that goes up, only the things that fit your approach. To be a disciplined investor, you have to be able to stand by and watch other people make money in things you passed on.