India likens cryptocurrencies to Ponzi schemes

[btcblockchain]

NEW DELHI: India warned Friday against investing in cryptocurrencies including bitcoin, likening them to “Ponzi schemes,” as it became the latest country to urge caution.Despite a boom in trade that has seen prices soar, cryptocurrencies “don’t have intrinsic value and are not backed by any kind of assets,” the Indian finance ministry said in a statement. “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,” it said.Bitcoin prices plunged by almost 40 percent from its record high of $19,500 (SR73,125) this month as investors cashed out following the wildly volatile currency’s stratospheric rise.Analysts and governments have repeatedly warned about a bubble that could burst at any moment as investors, many inexperienced, piled into the currency.India’s government said consumers needed to be “extremely cautious as to avoid getting trapped in such Ponzi schemes.”.

Its warning came a day after South Korea, a hotbed for cryptocurrency trading, said it would ban anonymous trading of virtual currencies.On Tuesday Israel announced a move to ban trading in cryptocurrency-based companies on the Tel Aviv market until it can regulate transactions involving digital coins.The vice president of the European Central Bank has also expressed concern about the relentless rise in the value of bitcoin.US Federal Reserve boss Janet Yellen has said bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes..

http://www.arabnews.com/node/1216001/business-economy

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[saurabh]

NEW DELHI: India warned Friday against investing in cryptocurrencies including bitcoin, likening them to “Ponzi schemes,” as it became the latest country to urge caution.Despite a boom in trade that has seen prices soar, cryptocurrencies “don’t have intrinsic value and are not backed by any kind of assets,” the Indian finance ministry said in a statement. “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,” it said.Bitcoin prices plunged by almost 40 percent from its record high of $19,500 (SR73,125) this month as investors cashed out following the wildly volatile currency’s stratospheric rise.Analysts and governments have repeatedly warned about a bubble that could burst at any moment as investors, many inexperienced, piled into the currency.India’s government said consumers needed to be “extremely cautious as to avoid getting trapped in such Ponzi schemes.”.

Its warning came a day after South Korea, a hotbed for cryptocurrency trading, said it would ban anonymous trading of virtual currencies.On Tuesday Israel announced a move to ban trading in cryptocurrency-based companies on the Tel Aviv market until it can regulate transactions involving digital coins.The vice president of the European Central Bank has also expressed concern about the relentless rise in the value of bitcoin.US Federal Reserve boss Janet Yellen has said bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes..

http://www.arabnews.com/node/1216001/business-economy

Indian Government is worst they are scared now that if people use crypto then they will not have any control all politicians are corrupt including our PM on top of that banks do not have any back up if funds are taken out from banks the so called Indian economy will fall.

[tcsmate]

Read somewhere in the media, Indian Government is a Ponzhi Scheme.

[mayankn]

Don't know who is running the government , They don't even understand the difference between Ponzi and Bitcoin. Time has came to get a decentralised govt. now

[bitcoinveda]

India with large population and unemployment cant truely relay on volatility of cryptocurrencies they make such annoucements and warnings to terroise people nt to invest in bitcoins

[brontosaurus]

NEW DELHI: India warned Friday against investing in cryptocurrencies including bitcoin, likening them to “Ponzi schemes,” as it became the latest country to urge caution.Despite a boom in trade that has seen prices soar, cryptocurrencies “don’t have intrinsic value and are not backed by any kind of assets,” the Indian finance ministry said in a statement. “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,” it said.Bitcoin prices plunged by almost 40 percent from its record high of $19,500 (SR73,125) this month as investors cashed out following the wildly volatile currency’s stratospheric rise.Analysts and governments have repeatedly warned about a bubble that could burst at any moment as investors, many inexperienced, piled into the currency.India’s government said consumers needed to be “extremely cautious as to avoid getting trapped in such Ponzi schemes.”.

Its warning came a day after South Korea, a hotbed for cryptocurrency trading, said it would ban anonymous trading of virtual currencies.On Tuesday Israel announced a move to ban trading in cryptocurrency-based companies on the Tel Aviv market until it can regulate transactions involving digital coins.The vice president of the European Central Bank has also expressed concern about the relentless rise in the value of bitcoin.US Federal Reserve boss Janet Yellen has said bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes..

http://www.arabnews.com/node/1216001/business-economy

Indian Government is worst they are scared now that if people use crypto then they will not have any control all politicians are corrupt including our PM on top of that banks do not have any back up if funds are taken out from banks the so called Indian economy will fall.

I think the govt. itself is in kind of a dubious situation. They can't obviously directly ban bitcoin because of it such a widespread adoption around the country. Nor they can expressly accept it as it will lead to money laundering at a very large scale. Even making a law regarding it is too difficult so they are trying to create FUD in minds of people. This FUD becomes even more solid when the price of BTC falls marginally bt 30% a day. So they are correct in their approach won't blame them for doing so.