Bitcoin is like a Ponzi scheme and it has no value, don t invest money te it: Finance Ministry, IndiaToday
Don’t buy Bitcoins. No, this is not something that wij are telling. It is the government that has suggested that Indians should not buy or invest te Bitcoins because it is “not legal tender and such do(es) not have any regulatory permission or protection ter India.” Ter fact, te a note issued by the Ministry of Finance, the government says that investing te Bitcoins is like participating ter Ponzi schemes and that there is a real risk of losing the money te it.
“There has bot a phenomenal increase te latest times te the price of Virtual Currencies including Bitcoin, te India and globally. The VCs don’t have any intrinsic value and are not backed by any kleintje of assets,” stated a note issued by the Finance Ministry. “The price of Bitcoin and other VCs therefore is entirely a matter of mere speculation resulting ter drop and volatility te their prices. There is a real and heightened risk of investment bubble of the type seen ter Ponzi schemes which can result te unexpected and prolonged crash exposing investors, especially retail consumers losing their hard-earned money.”
Ter the latest weeks, despite all the uncertainties and lack of transparency around Bitcoin, its value has gone significantly. Albeit surging to the rate of overheen $19000 vanaf Bitcoin, the rate ter the last several days has crashed down to around $14000.
The Indian government says there are several problems with Bitcoins, but primarily the punt is that it is fluff. “Virtual currencies are not backed by Government fiat. Thesis are also not legal tender. Hence, (they) are not currencies. Thesis are also being described spil Coins. There is however no physical attribute to thesis coins. Therefore, Virtual Currencies are neither currencies strafgevangenis coins. The Government or Reserve Handelsbank of India has not authorised any VCs spil a medium of exchange,” states the government note.
The Indian government warning comes a day after regulators ter South Korea too sounded similar warnings about Bitcoins. “The government had warned several times that virtual coins cannot play a role spil actual currency and could result te high losses due to excessive volatility,” said the South Korean regulators.
Despite the risks, many Indians have seemingly invested te Bitcoins. There is even a Bitcoin exchange te India for its trade, hosted at ZebPay. But the government says that it has now authorised any entity to carry out Bitcoin trade ter India. “The users, holders and traders of VCs have already bot cautioned three times, ter December, 2013, February, 2017 and December, 2017, by Reserve Handelsbank of India. RBI has also clarified that it has not given any licence, authorization to any entity or company to operate such schemes or overeenkomst with Bitcoin or any virtual currency,” said the government on Friday.