Government issues advisory to investors of ‘Bitcoin’. Know the cautions.
Millions of people in India lose their hard earned money to various risky investment options like ‘Ponzi’ schemes or other non-government controlled financial schemes. Many investors in India are getting fascinated with rapidly surging the value of ‘Bitcoin’, a virtual currency. But finance ministry has issued an advisory to the investors to become cautious as Bitcoin transactions are not legal tender in India and government has no control over transactions & valuation of this virtual currency. There are high risks involved in Bitcion investments and government has asked investors to invest prudently.
In recent times, not only in India but all over the world, Bitcoin has become very popular among the investors. There isn’t any natural value associated with Bitcion, thus there are usually steep fluctuations in its value. There are several people who want to earn huge profits in less duration of time. If you are aiming to invest in Bitcion to earn hefty profits, finance ministry alerts you as there are high risks involved with the investment.
Finance ministry further adds that Bitcoin in India is not any legal tender. It is not a currency and there is no physical value of this virtual currency. Government of India or RBI has not given transactional rights of such virtual currency in the country and no regulator is authorized in India to regulate Bitcoin transactions or investments.
Investment in Bitcoin is just similar to investment in Ponzi schemes in which high risk is involved. People need to be highly cautious while investing in such investments. Because information of such currency is stored in digital lockers & electronic formats, high risk of hacking and duping may be associated with it. As there isn’t any regulatory or tribunal constituted by government, it becomes almost impossible for any victim to prosecute legally to recover the loss.
The central government, SEBI & RBI are collectively working in direction to regulate some rules for Bitcion investment but there has not been any concrete decision taken yet. Until any regulatory is not formed which could shield the investor’s investments, it is advised not to invest heftily in Bitcion. Money is earned with very hard efforts and we don’t want you to lose your money in aspiration of multiplying it in minimum time. Have safe and long term investments.