Do you know zero worth DHFL has outperformed Bitcoin in FY22?

The negative prospects of DHFL are well known to the investors while the bright future of Bitcoin is speculated by experts across the world and yet the contrast in the performances. 

They say markets are irrational in short term. It must be true, otherwise, why would something worth zero gain nearly 10 per cent and lock in the upper circuit while something held as future money like Bitcoin slump in value as if there’s no future for the cryptocurrency. What is ironic is the fact that DHFL in FY22 so far is up by more than 10 per cent while Bitcoin, which has caught global investors’ attention is down by more than 32 per cent in a similar period. The negative prospects of DHFL are well known to the investors while the bright future of Bitcoin is speculated by experts across the world and yet the contrast in the performances. 

Analysts have been warning investors about the prospects of DHFL being valued to zero as a part of the deal where DHFL is being sold to Piramal Group. India’s largest brokerage firm, Zerodha also warned investors about the possibility of the value being written down to zero in the case of DHFL. Experts say that the upper circuit was more due to a lack of sellers in DHFL rather than buyers queuing up to latch on the share. 

In times like these, where markets are at all-time highs and are gushed with liquidity investors’ much-heed caution and stick to quality shares, should avoid chasing anything simply because it goes up in prices. After all, quality matters! 

It is worth noting here - If one understands the business one is putting his or her money in – it's investments. If one puts money into stock whose business one does not understand – it's gambling. This applies to Bitcoin investing as well.