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Zerodha's Nithin Kamath: Don't invest in Bitcoin because I don't understand it, maybe Elon Musk knew what was happening in China

"People shouldn't have more than 1-2 percent exposure to crypto as an asset class. The only reason to buy Bitcoin is the hope that someone will buy it from you at a higher price. Zerodha will offer crypto when regulations are explicit"

May 20, 2021 / 06:35 PM IST
Representative Image

Representative Image

One wonders if Nithin Kamath, the founder and CEO of Zerodha, India's largest discount brokerage firm, and a self-made billionaire, is sometimes a glutton for trolling, with his contrarian takes on polarising themes such as Bitcoin, Elon Musk, and the exciting, volatile world of cryptocurrencies.

Last month, when Indian startups raised funding at a breathtaking pace, Kamath posted a series of tweets on why it is a crazy time to raise money. This week, when Bitcoin's ardent supporters urged investors to 'buy the dip' even as the cryptocurrency plunged by 30%, he posted a thread on why 'averaging down' is the biggest wealth destroyer when investing. Not surprisingly, he didn't pull his punches when Moneycontrol asked for his views on the epic Crypto crash.

"I don't know why it (crypto) went up, so I don't know why it went down. China could potentially be the reason. The way Elon Musk suddenly came and spoke about Bitcoins, he probably knew what was happening behind the scenes in China. I don't think he suddenly realized that Bitcoin is creating a carbon footprint," Kamath said.

He added that people shouldn't have more than 1-2 percent exposure to cryptocurrencies as an asset class. Kamath himself has preferred to stay away from investing in Bitcoins, despite its rising popularity in India.