Here is my view on Bitcoin or for that matter on any crypto currency.

Whenever we want to invest in any Asset Class, following aspects should be carefully considered :-

1. Regulator - Regulator frames policies and rules to safeguard investors' interest e.g.SEBI is there for Capital market, RERA for Real Estate etc. However there is no regulator yet for Bitcoin. Should you get into trouble, you do not know who to reach out to for resolution.

2. Risk - Any investment you do has to match with your Risk Appetite. In fact first you must know what is the risk involved e.g. you know that volatility is a risk in the short term in Equity but it fizzles out as time progresses. Did you know the risk in Bitcoin. To me, it seems to be very risky as there is no intrinsic value of Bitcoin. The price movement seems to be driven by mere speculation or one can call it a demand supply gap due to the limited number of Bitcoins that are going to be mined.

3. Returns - You can predict returns when you invest in Equity or debt. But it is not the same with Bitcoin. It can skyrocket some time or it may crash as per speculations. Are you prepared for this?

4. Liquidity - When you need money you can redeem your mutual funds. Is that the case with Bitcoin....probably yes....but given very high volatility, would you be comfortable getting your money back?

5. Taxation - As Bitcoin is not regulated and recognized as a digital currency, there is complete lack of clarity as regards Taxation. You may be happy having made a fortune but taxation may take a toll.

Having said that, one may still want to experience investing a bit in Bitcoin in thousands or lacs as per one's net worth & risk appetite or in other words one would not mind losing this play money.