All right so with the bit coins, moneros and ripples of the world today we are gonna talk about our favorite topic which is cryptocurrency
people preparing for their GD and PI theres gonna be one point which youre gonna be asked and if you say you
wanna do an MBA in finance, nobody can answer it better than a finance professor himself
were very proud to have with us today Dr. Shivas Bhatt who is from Welingkar business school
hes an MBA and hes been a business trainer at university of Sussex
hes got corporate experience with Kotak Security
so were gonna talk about, its gonna be a dialogue
i wanna ask you what is this bitcoin are? what this cryptocurrencies are? people are making a fuss about it, it hit 12lakh rupees today
the whole concept of bit coin emerged post 2009 subprime crisis where
there was whole anti regime movement which
ran through across the world, people didnt want
to trust their money or life savings with few people who are in power and control
the decisions, and some of those decisions are sometimes quite bad enough which probably makes their wealth
become 0 and which is why you would find post 2008 bit coin as a concept emerged and lot of
crypto currencies emerged where they started getting traded
globally, and the platform on which it got invented was blockchain which over a period of time became even more popular
and what this currency does is you have a secure
way of transacting and theres a anonymity thats maintained
that brings attraction from people who wanna store unreported cash or transactions
like druglords or any money generated is now getting stored in this currency which is why its a demand and supply move so
the currency gets released in a fixed quantum of time
but demand is so high that you can see the move its making
thats actually fantabolous, theres no KYC here like lure your customer
no, theoretically theres no KYC but its very secure so if i do remittance to anybody whos owned bitcoin and it gets transferred to my name
blockchain concept is that the owner and reciever both the names get added
and new block is created to the chain

but is difficult to decipher
as an outsider or regulator so
which is why lot of regimes are not liking it
and from indian context you mustve read that IT department raided
almost 4lac people and given them notice for owning bitcoin
thats gonna be a bigger threat to india than demonetization
where real cash exists thats supposed to be legal and you know which note is with whom and here theres no cash, theres no money, theres nothing
is it gonna be risk to the world economy?
theoretically if you have an unreported transaction
it never gets counted in your GDP
even when people were talking about demonetization
its very difficult to measure that because
if you say that its an informal cash based economy
thats not getting reported so if its not in existance
how would it matter since youre not calculating it
from an economy perspective it has very little impact
in terms if price goes up or down but
its an interesting concept which is what you need to
see if people start losing faith in a formal system
you would have a problem with it because imagine you can float a car
currency tomorrow and few people
come together and say lets use this as a way of echange so its like barter system
but create your own console and then allow trading to happen in that
from that perspective its a very dangerous movement
not a concept
i love that a finance professor calls it a move
for investing lakhs and millions of dollars in this whole concept
weve got the young audience on youtube right now so
theyre all of age group 21-25 who watch this channel i assume
whats your move, should we invest since its a high risk high reward thats what all the professors say
i did my SP Jain in bombay. if i got 1lac rupees in bank
this much should go in equities this much in debt etc
now theres bitcoin, so whats your take
what sould be the standard operating procedure for a young kid should he invest or not
im not sure how many young kids have 20,000$ to invest
its not a legitimate transaction from a indian government perspective
RBI put up lot of circulars on this where not giving recognition to this currency while some countries have given
like singapore where you can give bitcoin to withdraw singaporean dollars

until its formalizied i will advise not to invest in such asset because at the end of the day you want something thats also liquid
hypothetically we did some back calculation the rate at which its growing and is released
by 2024, 1 bitcoin would be close to 1 billion USD
looking at that value if u want to dump or get out of that asset it would be very hard to find a buyer
any such asset should be in tradeable terms where people can afford and buy it
since the software is created in a way where i can break or split a bitcoin its very difficult to later get out of it if youve bought it
on paper you can be a million, billion or trillionaire but over a period of time youll find difficulty getting out of it
no not at all, though im a finance professor id still do my math and
id still feel comfortable buying a lottery ticket than a bitcoin
that was a slap in the face for the bitcoin folks here nevertheless that was a really interesting chat with the professor
just to end it on a lighter note with due respect of finance professor, even im a professor for a couple of business schools in the country the day
you enter a b-school the director enters and tells you management cannot be learned
and today we talked that were here to learn and looking for people who are quick learners
nevertheless thank you mr bhatt for your time at catking