New Delhi, Dec 29: Amid of surge in the price of bitcoins across India and the globe, the Finance Ministry on Friday warned the consumers and investors saying these Virtual Currencies (VCs) don’t have intrinsic value and are not backed by any assets.
Price of Bitcoin and other VCs is the matter of speculation resulting in spurt and volatility in prices, the Ministry stated.
There is a real&heightened risk of investment bubble of the type seen in ponzi schemes that can result in sudden&prolonged crash exposing investors, esp. retail consumers losing money.Consumers need to be cautious as to avoid getting trapped-Finance Ministry on Virtual Currencies
— ANI (@ANI) December 29, 2017
In a bid to warn consumers from getting trapped in any kind of maze, the Ministry asserted ” there is a real heightened risk of investment bubble of the type seen in ponzi schemes that can result in sudden and prolonged crash exposing investors, esp. retail consumers losing money.
The Ministry statement came a day after, cryptocurrency dealer Pluto Exchange announced the launch of India’s first mobile application for transacting in digital currencies.
With the help of app-based wallet, consumers can buy, sell, store and spend bitcoins through a ten-digit mobile number.