Trade in bitcoins at your own risk, Indian Finance Ministry warns users

Road445

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The Experience Layer of the Decentralized Internet

Quote from: cryptocurrencyguru on January 01, 2018, 07:12:19 AM

NEW DELHI: India warned citizens against investing in virtual currencies such as bitcoin, ripple and ethereum, comparing them with pyramid schemes, reminding that these were not legal tender and lacked any regulatory permission or protection. It's the first such caution by the government on cryptocurrencies, although the Reserve Bank of India has previously issued warnings."Investors and other participants therefore deal with these VCs (virtual currencies) entirely at their (own) risk

https://economictimes.indiatimes.com/news/economy/policy/trade-in-bitcoins-at-your-own-risk-finance-ministry-warns-users/articleshow/62291055.cms

It is true that the Indian government is right that the current market for crypto money is still unstable, and that an unstable market implies risk.

cold_murchete

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I think the government does not see it as a currency, but if everything goes well, they should consider also to call it a currency ...

pooya87

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there are two types of warnings that the government, banks, etc issue.
- most of the countries have warned about investing in cryptocurrencies due to their highly volatile nature. it is a logical and a good warning actually. some people need to be constantly reminded of the risks of "reckless investments" to get rich overnight or else they will lose all their lives! and it is not just cryptocurrencies.

- but some countries like India are afraid of bitcoin, so far there aren't that many countries like this. only a handful. and they are afraid because bitcoin is ruining their evil plans of fucking up the economy. and they have been doing that for a while. remember the Seizures of ₹2000 notes back in December 2016...

vintages

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What is that fear almost every country is experiencing about BTC? I seems not to understand, its unrealistic how the Finance Ministry would not research about BTC but just issue a statement. If they did there research well, they will see that most individual in their country have really changed their economic status because of the help of bitcoin. They should make better use of it now while they can instead of putting fears in the mind of young interested people.

jseverson

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At least they don't seem to be planning any overbearing regulations right? India has a massive populace and losing it would be a massive blow in the long run.

Quote

The warning comes as Indian companies associated with the trade in virtual currency such as Unocoin, Global DCX and Coinsecure field queries looking to take advantage of bitcoin's ride. All of them are looking to step up hiring in anticipation of an increase in business, ET reported last week.

Isn't this a good thing? Why shit on it if it creates employment? I mean, the article did mention a few facts some of us would rather not face, but comparing it to a pyramid scheme is uncalled for.

Quote

VCs are stored in digital/electronic format, making them vulnerable to hacking, loss of password, malware attack, etc., which may also result in a permanent loss of money," it said. "As transactions of VCs are encrypted, they are also likely being used to carry out illegal/subversive activities, such as, terror-funding, smuggling, drug trafficking and other money-laundering acts."

This paragraph made me chuckle. Look how contradictory it is. First they're basically saying it's vulnerable, then next they're saying it could be so secure due to its encryption that it can be used for crime. Either way, both could just as easily be said about fiat. I'd think it would be safe to assume that there are more online banking users than crypto users, and they're just as easy to hack as any crypto. Fiat has been used for crime since its inception. I'll never be able to understand this angle.

AK47-

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The Indian finance ministry’s argument that Bitcoin and other cryptocurrencies are Ponzi scheme-like because of no intrinsic value or asset backing is flawed, as the same can be said for stock market where you don't have any real ownership. There is many more assets which are only being run on supply and demand.

This tweet sums up the ignorance of Indian Government very well
https://twitter.com/SunnyStartups/status/946711941250273280

globalctzn

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It is normal for every responsible government to alert and warn the citizens against engaging on any activity that has no government or regulatory backing and provision in order to exonerate itself from any unforeseen circumstances and risks inherent from such activities. The action is in order. Crypospace is unpredictable..

Netnox

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The Indian government must mind their own f***ng business. We are taking a huge risk in investing in Bitcoins and even after that if we get any profit out of it these parasites will demand that we pay a major chunk of our returns as taxes. Either they should make Bitcoin legal, or stop demanding taxes from anyone who is profiting out of BTC.

avikz

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Quote from: cryptocurrencyguru on January 01, 2018, 07:12:19 AM

NEW DELHI: India warned citizens against investing in virtual currencies such as bitcoin, ripple and ethereum, comparing them with pyramid schemes, reminding that these were not legal tender and lacked any regulatory permission or protection. It's the first such caution by the government on cryptocurrencies, although the Reserve Bank of India has previously issued warnings."Investors and other participants therefore deal with these VCs (virtual currencies) entirely at their (own) risk

https://economictimes.indiatimes.com/news/economy/policy/trade-in-bitcoins-at-your-own-risk-finance-ministry-warns-users/articleshow/62291055.cms

Indian government proved that they don't have the brain power or the willingness to understand the concept of crypto currency. Whatever goes above their brain, they term it as ponzi or pyramid scheme. Now the question is why people of India will need alternate source of income? It is because the previous and current government has failed to create required number of job opportunities. Highly educated people are going abroad and Indian government is busy playing with the religious sensitivity. It's a shame that Indian government has failed to do its job and now planning a ban on bitcoin.

Nilda

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All the more reason for governments to regulate cryptocurrency trading. We’ve had similar warnings every week and yet, bitcoin investors are increasing every minute.

bitart

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Vires in Numeris

Quote from: cyber_smiley on January 01, 2018, 07:51:00 AM

Quote from: mybtcasset on January 01, 2018, 07:32:48 AM

Bitcoin is an asset its is better indian govt see bitcioin as commodity rather than some gambling

Well it is mostly seen as "speculative asset" this is what it is since it needs to form stable price. We have to go through this road of hell, many people are just entering to flip money which is why I think govs don't see it as a currency yet, but if everything goes well they should consider calling it a currency.

Goverments won't consider anything. From their point of view they need to communicate to the citizents to stay away from virtual currencies, because they don't want to have a lot of citizens complaining about the losses they possibly face when they don't know about these virtual currencies and just invest in and face the volatile price and they sell in fear and account the loss of their money.
This is the public aspect of the government's point of view about the cryptocurrencies, but of course government are not happy when people buy crytocurrencies to invest in, instead of buying the government's bonds to finance the government's debt...

cyber_smiley

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Quote from: mybtcasset on January 01, 2018, 07:32:48 AM

Bitcoin is an asset its is better indian govt see bitcioin as commodity rather than some gambling

Well it is mostly seen as "speculative asset" this is what it is since it needs to form stable price. We have to go through this road of hell, many people are just entering to flip money which is why I think govs don't see it as a currency yet, but if everything goes well they should consider calling it a currency.

Hellobx

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The Experience Layer of the Decentralized Internet

Quote from: cryptocurrencyguru on January 01, 2018, 07:12:19 AM

NEW DELHI: India warned citizens against investing in virtual currencies such as bitcoin, ripple and ethereum, comparing them with pyramid schemes, reminding that these were not legal tender and lacked any regulatory permission or protection. It's the first such caution by the government on cryptocurrencies, although the Reserve Bank of India has previously issued warnings."Investors and other participants therefore deal with these VCs (virtual currencies) entirely at their (own) risk

https://economictimes.indiatimes.com/news/economy/policy/trade-in-bitcoins-at-your-own-risk-finance-ministry-warns-users/articleshow/62291055.cms

The Indian government is right, because the risk of cryptocurrency is high, and many countries have issued similar warnings.

tech72

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Indian bank RBI has been giving out these warnings since months. They have set up committee to analyse the cryptocurrencies. Also, they are sending tax reminders to people who are believed to have owned cryptocurrencies. It is just a normal alert they are releasing to warn people of possible risk. They also explicitly say that Bitcoin isn't illegal.

brengoskandel

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investors must have thought about the risks they will face
they only give an appeal to us cautious investors in investing with the currency crypto that fluctuations can not change uncertain in hours or even seconds

mybtcasset

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Bitcoin is an asset its is better indian govt see bitcioin as commodity rather than some gambling

xdrpx

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The worst part of all is, they've done almost least research (considering that they've not cited any research documents or mathematial proofs) and have concluded that Bitcoin and other Virtual Currencies are like ponzi schemes

Quote

"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. " Source: http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1514568

I'm for sure that atleast Bitcoin isn't a ponzi scheme, and it's the usual question asked by all newcomers cause they don't seem to understand how the value is derived. It's derived by demand and supply. It's backed by cryptographic trust and requires no middle man to validate the transactions. Also the miners actually put in a lot of investment and effort to have the coins mined, unlike the fiat currency India uses which isn't backed even by gold. Hence we can clearly say even the INR isn't backed by anything but mere speculation.

So, first the central bank warns its users not to trade in VC's, then also mentions it isn't a legal tender. Now since it isn't a legal tender people can't seem to find value in it in the country as a medium of exchange, hence since they were successfull in this, they finally conclude that it's ponzi. Wow, job well done.

lifetimebitcoins

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Instead of banning bitcoin and creating non sense it is good to warn and then regulate and form guidelines

icoprofits

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it look like Indian Govt is warning users of potential risks in Crypto market to general public

cryptocurrencyguru

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NEW DELHI: India warned citizens against investing in virtual currencies such as bitcoin, ripple and ethereum, comparing them with pyramid schemes, reminding that these were not legal tender and lacked any regulatory permission or protection. It's the first such caution by the government on cryptocurrencies, although the Reserve Bank of India has previously issued warnings."Investors and other participants therefore deal with these VCs (virtual currencies) entirely at their (own) risk

https://economictimes.indiatimes.com/news/economy/policy/trade-in-bitcoins-at-your-own-risk-finance-ministry-warns-users/articleshow/62291055.cms

Topic: Trade in bitcoins at your own risk, Indian Finance Ministry warns users (Read 227 times)