MUMBAI: The quest for multi-baggers often leads investors to seemingly obscure stocks that would be the blockbusters of the future. In the past two years, however, money managers may have done better if they had chosen the least likely growth asset the currency.

The once non-descript bitcoin, a crypto currency, has returned more than 10 times since 2015, with the price of the digital instrument hitting a record Rs 225,000 a unit in the domestic spot market last week. Trading in bitcoins is gaining traction, especially among those aged 18-35 years and seeking to harness volatility for extra-ordinary returns.

The increasing awareness of bitcoins worldwide, particularly about its revolutionary technology, has triggered a rally in the bitcoin market, said Sandeep Goenka, cofounder and chief operating officer at Zebpay, an app-based bitcoin exchange. Japan has now added itself to the list of countries that have regulations for bitcoins. Due to these positive factors, bitcoin prices have been showing tremendous strength.

With an expert committee in India now seeking to regulate domestic trading of bitcoins, prices are expected to leapfrog in the next one year. Since April, Japan's legalization of the digital currency has contributed to the rally in bitcoins. After Tokyos move, many vendors have started accepting the virtual currency: Peach Aviation, for instance, is going be the first Japanese airline to accept bitcoins as payment for plane tickets.

Sahil Shah, a final-year BBA student of Nirma University, Ahmedabad, has sold four bitcoins at roughly Rs 2.20 lakh apiece versus Rs 70,000, the average price at which he acquired those.

"This rally was almost a bubble, but it gave a solid profit-booking opportunity for investors who bought bitcoins two - three years ago. I will buy back once prices correct a bit more," said Shah.

It is not necessary to buy one bitcoin. One can even buy a fraction of that. At Zabpay, one can invest with a minimum of Rs 1,000. It is now registering trading volumes of Rs 50 crore per day, which was way below at about Rs 15-20 crore even a year ago.

According to Goenka, Zabpay now holds about 70 per cent market share. Coinsecure and Coinmama are some of the other platforms used to trade in the currency.

Like any other investment, bitcoins are not risk-free. Sharp price swings are routine. After touching the record high of Rs 225,000 a unit, the price plunged to about 160,000 a unit within an hour or two.

"I've held on to my bitcoin portfolio as I am a long-term investor. I expect bitcoin prices to strengthen over a longer time-frame. If more countries legalise crypto currencies, bitcoin prices may appreciate much more than the current (price) levels," said Madhur Todi, who owns seven bitcoins now.

"Betting on bitcoins can be very risky: It's a very volatile asset class. At most, investors can take 1 - 2 per cent of their overall portfolio exposure to bitcoins," said Todi, who runs Mera Money Advisors, an Ahmedabad-based wealth advisory firm.

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All that glitters is bitcoin now - Economic Times