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Finance Ministry Issues Yet Another Advisory Against Cryptocurrency, Likens It To A Ponzi Scam
A Bitcoin exchange in India (Srikanth Ramakrishnan/Swarajya)
The Ministry of Finance today (29 December) sent its fourth notice to people talking of possible risks in investing in virtual currencies such as bitcoin which lack a government fiat and compared them with ponzi schemes.
This follows a crackdown by authorities in South Korea on bitcoin trading that resulted in an eight per cent drop in its value yesterday (28 December).
The ministry had earlier issued notices thrice, once in 2013 and twice this year. It warned that virtual currency, by virtue of its non-government backing carried a higher risk of investment bubbles similar to ponzi schemes and therefore could result in customers losing their money. It also said that due to it being stored digitally, it was vulnerable to cyber threats such as malware attacks and hacking, thus leading to loss of money.
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