Bitcoin Ban In India, BITCOIN PRICE Future, HOLD OR NOT BITCOIN March 2017
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BJP's Kirit Somaiya terms bitcoin a 'pyramid ponzi scheme'. Is he right?
"The use of Bitcoin, a hypothetical currency, is increasing at a rapid speed in India as well as in the world. Experts have expressed concern that Bitcoin is a pyramid ponzi type scheme," Kirit Somaiya said.
BJP MP Kirit Somaiya hit out at the increasing use of bitcoin in India, raising the issue in the Parliament, terming the digital currency as "hypothetical" and a "pyramid ponzi scheme".
"The use of bitcoin, a hypothetical currency, is increasing at a rapid speed in India as well as in the world. Experts have expressed concern that bitcoin is a pyramid ponzi type scheme," he said.
He urged regulators RBI and SEBI, besides the Finance Ministry, to look into its regulation and take steps to "save people from another big ponzi fraud".
Somaiya's concern over the digital currency is not surprising: the stellar rise of bitcoin as an instrument of speculation or investment, if not a currency, has given rise to plenty of hype, and even confusion, surrounding it.
Over the last one year, bitcoin price has rallied 214 percent to all-time highs of USD 1,300.
So while the currency itself does not offer any promises of return on investment, except for capital appreciation, the lack of regulation around it has given rise to a host of multi-level marketing (MLM) companies who are looking to cash in on the increasing popularity, and mystery, over the novel financial instrument.
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