Bitcoins and altcoins are “Ponzi Schemes”, says Indian finance ministry

Avatar Written by Sajeel Syed · 56 sec read>

The last blow to Bitcoin and altcoins in the year 2017 is here and it’s a strict statement coming straight from India. India’s Ministry of Finance has warned the people of the state against the risks involved in trading cryptocurrencies. The authorities in India have gone too far by referring blockchain-based assets like Bitcoin to “Ponzi schemes.”

Must Read: A step by step guide on how to buy Bitcoin in Pakistan

It’s not the first time that such sort of warning is coming from India, the Reserve Bank of India has issued two similar warnings in 2017, to people who hold and trade cryptocurrencies. However, the new statement from the Finance Minister again shows how the government is responding to the global hype created by the surge in the price of various cryptocurrencies.

According to the statement,

“The price of bitcoin and other [virtual currencies] 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… Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes.”

Well, India is not the only one giving bad remarks on cryptos, other states including the likes of China and Russia have given strict comments on the cryptocurrencies. Some portraying them as the backbone of funding terrorism while others predict a risk of the bubble.

A recent statement by Turkey’s high religious authorities claiming that “Bitcoin is un-Islamic”, also impacted most of the Muslim community trading in cryptocurrencies.

Image Source: Coin Telegraph

Written by Sajeel Syed
I am a writer at TechJuice, overseeing IT, Telecom, Cryptocurrency, and other tech-related features here. When I'm not working, I spend some of my time with good old Xbox 360 and the rest in social activism.Follow me on Twitter: Profile