The government has put Bitcoin under Ponzi Scheme category. Today, the Ministry of Finance released official notification on Virtual currencies. In the accordance of increasing price of the Virtual currencies including Bitcoin, the government has expressed their concerns. As per the reports, in the official notification, the Ministry of Finance has warned people for investing in the virtual currencies like Bitcoin. And they put Bitcoin (the Virtual Currency) under the category of Ponzi Scheme. In the official statement over virtual currencies, the government says that it is the phenomenal increase in the price of virtual currencies in the recent times including Bitcoin, in India and globally.
The government while featuring the risks of virtual currencies said that South Korean government on trading of bitcoins led to drop of 8% in its value on Thursday. Also, said that Bitcoin is lack of government fiat along with the comparison to Ponzi Schemes. Presently, the value of Bitcoin is around $ 14,000. The Ministry of finance has also added that the price of Bitcoin and other VC’s is entirely a matter of volatility in their prices. Ministry of Finance alerted consumers to avoid getting into such Ponzi Scheme like Bitcoin.
Ponzi Schemes are the fraudulent investment operation where the operators return for older investors through revenue paid by new investors rather than from authorised business activities and the profit of financial trading. It is the kind of fraud operation which grabs the attention of new investors by offering short-term returns that are unusually consistent. Indian government today said Bitcoin is similar to Ponzi Scheme which makes the online investment from the investors.
The Finance Minister has also added in the official statement that users, traders and the holders of the Virtual currencies have already been cautioned for three times in 2013 December 2017 February and now in December 2017 by the RBI. The Reserve Bank of India released that customers are exposing themselves by investing in bitcoin and other virtual currencies.
Government Cautions People Against Risks in Investing in Virtual ‘Currencies’; Says VCs are like Ponzi Schemes https://t.co/uNL3NqUG5c
— Ministry of Finance (@FinMinIndia) December 29, 2017