‘DON’T invest in Bitcoin’ warns Indian central bank despite surge in cryptocurrency value

'DON'T invest in Bitcoin' warns Indian central bank despite surge in cryptocurrency value Bitcoin has surged since it was first created in 2009 but India’s central bank is warning that hacking could put investments in the cryptocurrency at risk In a statement urging caution the central bank said: “In the wake of a significant spurt in the valuation of many virtual currencies and rapid growth in Initial Coin Offerings, the Reserve Bank of India reiterates the concerns

” They went on to say Bitcoin has the “economic, financial, operational, legal, customer protection and security related risks” Despite the advice retail investors in the country are rapidly putting their money into Bitcoin, with demand for the currency in India so high it costs 20 per cent more than international prices There are at least 11 Bitcoin trading platforms in the country with around 30,000 customers around the world actively trading at any given point The bank has issued three warnings since 2013 about the risks of the cyber money

Last month £26milion disappeared from the Bitcoin exchange Tether In a statement the exchange said: “We discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker “$30,950,010 was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorised bitcoin address” They added that it would not be possible to redeem any of the stolen tokens However, hacking is not the only concern those working in the finance sector have about bitcoin

Experts have also advised not to trade in the mysterious online currency due to concerns its rapid growth in value will not last Nicholas Gregory, CEO of the cryptocurrency business enabler, CommerceBlock, has argued Bitcoin is in a “bubble” He said: “Once Bitcoin starts to behave more in tune with traditional foreign exchange markets, peoples faith in it will only grow “However, that means it is not immune, and should not be immune, from price corrections either A significant price correction and the long-term viability of bitcoin as a major alternative currency are not mutually exclusive

Source: Youtube

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