Stay Away from Bitcoin

The ongoing frenzy to invest in Bitcoin and its ilk is not letting up even after multiple warnings from the Reserve Bank of India. Now the finance ministry has issued a similar warning, cautioning people against investing in virtual currencies. The ministry said in a notification that the virtual currency is not a legal tender in India, does not have any intrinsic value and is not backed by any asset. The rise in price may be a mere speculation and hence, can expose investors, especially retail investors, to the sudden risk of losing their hard- earned money. As these currencies are stored virtually, they are also vulnerable to hacking, the ministry says.