FM says bitcoin is like a Ponzi scheme and it has no value, don’t invest money in it

downloadTo invest or not to invest in bitcoin is something that is troubling every investor these days. Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary.These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Since these are not regulated by any regulatory body approved by the Govt, hence their credibility is long fraught with controversies.

The Govt of India has been releasing press statements and notifications from time to time to assist investors. As per one such recent statement, it has cautioned investors from investing in it.

The text of the statement read:

“There has been a phenomenal increase in recent times in the price of Virtual Currencies including Bitcoin, in India and globally. The VCs don’t have any intrinsic value and are not backed by any kind 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 in spurt and volatility in their prices. There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes…”

Click here to read the full text of the statement


We have launched Single Platform on GST Compliances In India, assisting in 4 areas – 1) Migration, 2) GST Compliance, 3) Training and 4) Transition & Implementation. Click this link for any assistance.

Leave a Reply

Your email address will not be published.