Wonderful Engineering

Indian Finance Minister Calls Cryptocurrency A Ponzi Scheme

A strict statement came in straight from India about Bitcoin and altcoins. Indian Finance Minister is warning the people of his state to keep in mind the risks involved while trading cryptocurrencies. The authorities of India went too far while giving the statement and referred the blockchain-based assets to “Ponzi schemes.” This is not the first time that such a warning came from India. The Reserve Bank of India has already issued two similar warnings in 2017 to people who are holding and trading cryptocurrencies.

The new statement from Finance Minister shows that the government is responding to the global hype which is 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.”

India is not the only one giving bad remarks on cryptocurrencies. China and Russia have also given strict comments on the topic. Some portray it as the backbone of funding terrorism and some predict the risk of the bubble to burst soon. Another statement that came recently from Turkey’s high religious authorities claims that Bitcoins are un-Islamic. This also impacted many Muslim countries trading in cryptocurrencies.