Once again, the Indian government warned investors to be careful when trading virtual currencies like bitcoin, saying they are like Ponzi schemes with no legal frame and protection.
“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. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes,” Pon Radhakrishnan said in a statement.
Virtual currencies are stored in digital/electronic format, making them vulnerable to hacking, loss of password, malware attack etc. which may also result in permanent loss of money, the official said.
