Bitcoin has emerged as an alternative asset class, delivering high returns in the past few years but not without equally high risks. A year before, the crypto-currency was quoting at $260 a unit. In the past six weeks, the price has risen to $640, following the British vote to exit (Brexit) the European Union and a depreciating Chinese currency.

In India, each bitcoin is worth Rs 44,000-45,000. A crypto-currency is a medium of exchange that uses cryptography to manage the creation of new units, as well as to secure transactions. Considering the returns, there are risk takers in India who ...