Again The Government Warns People, Against Bitcoin

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Again The Government Warns People, Against Bitcoin
Again The Government Warns People, Against Bitcoin

The government has cautioned people on risks of ‘virtual currencies’. In a statement, the Union finance ministry has said that Virtual Currencies are like Ponzi Schemes and they don’t have intrinsic value & not backed by any kind of assets.The price of bitcoin & other Virtual Currencies is entirely a matter of mere speculation. The statement says there is the real & heightened risk of investment bubble of the type seen in Ponzi schemes.

  • It adds that result in the sudden & prolonged crash can expose investors consumers to huge losses. The ministry advised people to be alert & extremely cautious as to avoid getting trapped in such Ponzi schemes.
  • It said that such transactions are encrypted, can be used to carry out illegal activities, terror-funding, smuggling, drug trafficking, money laundering. It further says that virtual Currencies are not legal tender, not currencies and RBI has not authorized any such currencies as a medium of exchange. It says that virtual Currencies do not have regulatory permission or protection in India’.

GOVT CAUTIONS PEOPLE ON RISKS OF VIRTUAL ‘CURRENCIES’

The Government Is Against Bitcoin
The Government Is Against Bitcoin
  • Finance Ministry: Virtual Currencies are like Ponzi Schemes.
  • The phenomenal increase in recent times in price of virtual ‘currencies’ including bitcoin in India & globally.
  • Virtual Currencies don’t have intrinsic value & not backed by any kind of assets.
  • Price of Bitcoin & other Virtual Currencies is entirely a matter of mere speculation.
  • Real & Heightened risk of investment bubble of the type seen in Ponzi schemes.
  • Result in the sudden & prolonged crash can expose investors consumers to huge losses.
  • Need to be alert & extremely cautious as to avoid getting trapped in such Ponzi schemes.
  • Transactions are encrypted, can be used to carry out illegal activities, terror-funding, smuggling, drug trafficking, money laundering.
  • Virtual Currencies are not legal tender, not currencies, RBI has not authorized any such currencies as a medium of exchange.
  • Virtual Currencies do not have regulatory permission or protection in India.

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