Why you should invest in gold in these uncertain times

Is this the right time to invest in cryptocurrencies? What are the pitfalls, more so after the FTX disaster and the banking collapse in the US?

The recent collapse of banks in US has drawn the attention of the whole world and tremors are being felt across the financial system globally. Central banks will now step up their vigilance to avert any further cracks in the financial system.

In this era of uncertainty, thinking of investing in crypto assets is certainly not a viable option. While we call it “cryptocurrency”, the central banks of the world have negated this interpretation and they maintain that they are the only institutions who can deal with native currencies.

Again, cryptos are also traded in fiat currency, like any other investment product and yet, the regulations for crypto trading are still at a nascent stage which can lead to setbacks for investors, with FTX being case in point. Unless regulators enact suitable legislations and grant all the requisite clearances for trading in crypto assets, they remain a risky bet.

Investing in crypto assets involves high risk as they are complex investment products. Unless you have clearly understood the pitfalls and you are prepared for any eventuality including loss of capital, you should not be investing any of your hard-earned money in crypto. The mere fact that prices for these crypto assets have dropped considerably is certainly not a criterion for investment.

On the contrary, there are abundant options available in the market for you to invest, from equities to bonds and so on. Please spend some time to analyse these investment options and consider associated risks before you make a choice to invest.

Dhaval Jasani is founder and CEO of ZTI Global Consulting