You read that right! Nothing that our government does shocks me anymore, and there’s not a lot of positive surprises from them in anycase. So a statement that likens Bitcoins to Ponzi Schemes from the Ministry of Finance is nothing scary. But sometimes when I read these things it makes me want to break into a laugh!
Today, the Ministry of Finance has cautioned cryptocurrency users in their statement about the risks of investing in these digital currencies such as Bitcoin and other alt-coins. If you are unfamiliar with Ponzi schemes then you can read all about them here!
Fortunately, they stopped short of any outright bans or imposing any curbs on trading these speculative assets. If you are worried about any bans in the short-term then there’s no need to worry as it’s unlikely that this will ever happen!
VCs are not backed by Government fiat. These are also not legal tender. Hence, VCs are not currencies. These are also being described as ‘Coins’. There is however no physical attribute to these coins. Therefore, Virtual ‘Currencies’ (VCs) are neither currencies nor coins. The Government or Reserve Bank of India has not authorised any VCs as a medium of exchange. Further, the Government or any other regulator in India has not given license to any agency for working as exchange or any other kind of intermediary for any VC. Persons dealing in them must consider these facts and beware of the risks involved in dealing in VCs.
This doesn't imply that exchanges are affected in anyway in their operations. KYC is mandatory but beyond that there are no curbs or restrictions. However, any trades that you conduct or any cryptocurrencies that you hold in any Indian exchange account is tracked and the Income Tax department will have full access to that data whenever they choose to audit any exchange registered in India.
There are no regulations yet and the government still feels VCs are likely to be used for funding terror activities amongst other things. It’s not like they’ve been able to curb any illegal activities with fiat currency. Seems like crypto is a great place to shift blame when problems inherent with fiat money remain unresolved.
Education is key to improving your knowledge of this space and sometimes I feel that the government is still ignorant about a few things. Ofcourse, they want us to be safe in some aspects-there are indeed bad actors and scammers in this space and it's upto us to protect ourselves.
Hopefully in 2018, we’ll see some real progress in India on these lines. About time we got a proper framework. As of now, the stance is pretty clear, cryptocurrencies are not legal tender in India. The government also feels that the market is too small in India to be regulated. Perhaps if a few million users signed up in a matter of months-it might change the minds of the policy makers.
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Do you think this announcement has anything to do with the pump of the crypto called "Rupee"?
https://coinmarketcap.com/currencies/rupee/
I dont think so. There are far too many pump and dump coins on the market. Hard to say what moves them. Mostly it could be due to low liquidity or market manipulation. Not sure what is the case here.
Yes you are correct the Rupee ICO is stated to start a new crypto exchange
https://steemit.com/india/@manojm/india-bitcoin-craze-but-govt-posts-bitcoin-as-a-ponzi-scheme
Read upvote follow
Read upvote follow
https://steemit.com/cryptocurrency/@manojm/bitcoin-cash-the-coin-which-will-rise-to-usd10000-january-2018
Better sell your Bitcoin profits now. Some exchanges are having over a week long delays! Not sure why..
Nowadays it is much risky to keep money in banks, and after FRDI bill, neither government nor bank will have any liability of our money if the bank goes bankrupt. Secondly, if the VCs are not a legal tender then why they are collecting taxes on them. Totally confused government!
They are half right. They just need to turn it around and tell everyone the truth that modern aggressively run governments ruling the people are funded by future generations due to unsustainable future debt. Last I checked that was a Ponzi scheme's literal definition.
exactly !!
The government have not clearly understood about cryptocurrencies and how they work.
you are correct. they must have already though how to loot people on crypto also...
https://steemit.com/ripple/@manojm/ripple-surge-more-than-70-to-2-52usd
Read,upvote & follow
most of Governments in the world think the same thing. I live in Morocco and it is the same thing. moreover, If they catch you trading digital currencies in Morocco or you buy something with a digital currency there a high possibility to be in Jail.
evernthough, I personally trade digital currencies and invest in them because I personally believe in the power of the blockchain and some day It will be powerful then governments and give financial freedom to everyone.
Wow, I had know idea. That's not right at all.
Recently Central Bank of Bangladesh issued a warning about cryptocurrency and it circulated on all national newspaper.
https://steemit.com/bitcoin/@syfulcomet/bangladesh-bank-has-issued-a-warning-about-bitcoin
Government will do anything and will keep doing many things just to get hold of what they consider threat. I think they see crypto currencies as threat. Why? Because it is decentralised.
Had they were the one that control crypto currencies, I don't think all of these stories will come up.
As long as the world is evolving into blockchain technology, everyone will grab the opportunity and make good use of it.
Besides, Ponzi schemes made many people to know about crypto currencies. I came to know about Bitcoin when reading about MMM.
i am not convened with this statement of your's
" they want us to be safe in some aspects-there are indeed bad actors and scammers in this space and it's upto us to protect ourselves". Government itslef is a bad actor. their idea is not our safety. they are thinking how they can get benefited individually
good post. i am resteeming it
interesting perspective. Normally I have seen the elder generation giving all the support to governments and go after government instruments (bonds, indira vikas patra, kissan vikas whatever, Provident funds etc). Looks like the demonetization has changed the perspective of the entire nation ?
How could government think that virtual currencies will be used for funding terror activities? Cryptocurrencies are being accepted all over the globe. I can's understand that Why India is ignoring this.
It would be a scam if you had to pay actual money to gain crypto.
And then Steemit proves them wrong.
meybe cryptocurrency illigal in india
now leave Bitcoin comfortable :D :D
Central banking, banksters and thin air printed money are the real ponzi!
We need to spread more and good knowledge of cryptocurrency so that government can learn about it.
Hy my name is ubay. I have read your posting. I think that is the wrong because cryptocurrency is not ponzi. I agree with you that the indian goverment wrong about that. So the conclusion crypto is different with ponzi. Thank you
Im all for bitcoin and cryptos but we don't really know what will happen, maybe he is right, after all we are buying air.
Emphasis on the word government.
I'm not really surprised since most of them are not updated on latest trends, they don't read and are archaic.
I'm not surprised
I am new here and you are welcome
Indian government proves itself afraid for change, for something that they cannot have control over and thus a way of liberation for the citizens. Nobody says that we should forget the traditions, that we shouldn't keep the old values, but in order for the society to evolve it needs financial freedom. And this is what cryptocurrencies represent, they move the ownership (or at least a part of it) from the governments and companies right to the people. The people has power now over the blockchain technology and only through their involvement the things are growing.
So, don't listen such propaganda messages, liberate yourself and gain your freedom in the entire world!
New stuff always threatens the status quo. Paradoxically, lack of rules can provide an incredible testing ground for new technology.
Ya it's true that we have to improve the education system in india and take these cryptocurrencies in a positive way because they are the future and might very soon replace the fiat also, let's see what is our government do for cryptocurrencies in 2018.
Hahahaha. Seriously? They seriously have no clue. They can only be left behind and regret it later.
Turkey government thinks the similar like that too! They think bitcoin is a balloon that'll collapse pretty soon. They say they'll try to follow it too somehow, not sure it's possible or not but.
💙 Great post. Very good writing,i like this post 💙
🎅 Thanks for Sharing 🎅there are sharks in them waters, and they are professionals at what they do and when its all said and done, and when the time is right they will take it down to zero and many dreams will die in the blood bath,, and they will laugh with great pride and little remorse as they swim away with your dreams,, take your initial investment out if you wish to play, the blockchain will be old tech soon enough and these sharks do not sheer the sheep,, they kill it
Welcome to steemit @firepower, best regards hopefully you feel at home here. 😍
Well the profit potential in crypto currencies definitely make you think about it and the first thing that comes into mind is definitely ponzi scheme. But if you go deep in it then you'd know that it is the future that will change the world! @firepower
Wake up India the world is thinking cryptocurrency! I believe bitcoin will be recognized by the world at large sooner.
The real ponzi schemes is the one with fiat money and traditional banks.
They are trying to confuse people in order to delay the crypto takeover.
But it cannot be stopped, this technology is here and will stay here, growing everyday.
I am not worried about attacks coming from governments or banks, they are just worried and scared.
Modi government is against innovation. They talk about digital India and now want to curb cryptos. This is the same with driverless cars and many more examples like that.
Government is a bunch of idiots.. they should learn and study the different kind of crytocurrencies first before saying it.
Indian Government can change anything anytime.
:-)
this is weird i think what the Indian government need is a good financial adviser who will educate them on importance of digital currency and even educate them on it , am sure they will change their view about it
They r setting up the platform for themselves....talk of launch of own crypto is very much in the air.....so better first create doubt and then lsunch own to hv own scheme.....may talking ponzi becomes bonzie for them😉
Not that I am a fan of this government but i do understand why they would they make these statements. They are not completely wrong........ A simple search on crypto currencies will tell that there are thousands of them... How may of them do you think, are going to retain their value, let alone making it big like (like bitcoin)... When the government issues statements, they are not thinking of people like us (by us i mean people who have a fair knowledge of crypto currencies and that they can go down hill any day)... but they think of people who get exited for an interest rate of 10% on an FD.
Sooner or later they'll have to bring in regulations and build a framework till then this is just blame game that is best time-pass of incompetent babus. They brought in the 'life changing' demonetization fad and within a month, there were fake currency notes being seen all across the country.
Actually, govement have not any knowledge about the working of crpto currency market. So they simply called it pangi scheme. Actually the politicians of our country are not unfortunatly not educated, so without any knowledge they called it a scheme or terrorists money,etc.Proper guide and education my clear their doubt. Want to ask can't we unite together to fight or solve the problem in a positive way, so they like other countries people we Indians also benefited greatly with out any fear or suspension .You are so powerful and telanted, please find out any solution so that the govt can make a positive attitude towards crypto currency in India. Thanks for sharing such a valuable information, wish you a very happy and prosperous New Year my dear friend. Resteem.
@firepower. Thanks for your enlightenment. Governments are so confused these days thinking that they can influence everything after denying us our dividends of citizenship, yet they want to sabotage the efforts of people creating a sustainable impact in helping the community to grow beyond any government standards.
I appreciate all the pioneers of this great revolutionary innovative that has brought massive transformation to every sphere of life.
Thanks.
I read this article and "The Statement". Hah!
In fact post reading it I thought wouldn't it be a good idea to bring the positive stories from crypto in India to light? Like yours for example @firepower - securing a financial future through steemit. Or @bikergirl who funded her travels through it. Heck even mine! I have been able to sustain myself and my family through steemit for 6 months now! And I am sure there are many many more... Ask government to read these stories and then say cryptos are ponzi schemes!
This has strengthened my resolve to help bring onboard more musicians to steemit. I am gonna accelerate finishing my presentation and get those workshops started.
currently its a hot topic in our country and i hope they will do some good changes. maybe lot of people investing it crypto currency and if they do not want to support why allow everything in the country.now its become more hot topic then kattapa ne bahubali ko kyun mara.
Dear @firepower :) I discovered a blog which looks quite similar to yours (photo/name/ country etc.). Under this post there are even more than five hashtags which I thought is not possible: https://steemit.com/foodie/@mnaik/french-toast-and-ice-cream-2017-12-30-08-51-57
I just wanted to ask you if there's anything right with this blog and wether you know about it or not. It just appeared worth sharing with you to me to make sure no one is using your ideas and identity to create content.
Have a great day my friend :)
Best wishes!
Similar problems occur in my country, Indonesia. The Government through Bank of Indonesia imposes a ban on VC. But I am sure, next year the government will reconsider this issue. By examining further about VC.
I read this in TOI today and found it quite funny as well:)
I can't believe the government has so much backward thinking about virtual currencies. They need to update themselves about this.
Funny, Pakistan has also declared Bitcoin illegal but we do have our first own Cryptocurrency named Pakcoin although its not so popular.
@firepower Do you have the same name on steemit.chat?
is they any influance the crypto coins......
Hi I'm from india too, I saw something like this similar in the newspaper today and I would like to say that government or the people clearly don't have the exact idea of what crypto still is!
Either way I feel it a good thing the people who invest when others are not are the people who gain massive advantage in the end. 👍
Banks have started refusing services to a lot of crypto exchanges operating out of India. I wasn't able to transfer funds to Koinex or Zebpay.
I remember reading this article and thinking about Japan. It's a real contrast between the two countries. Japan that embraces change and other countries similar to India who sceptical about cryptocurrencies.