Cryptocurrency is trending everywhere with Bitcoin creating new records every day. Recently the value of Bitcoin has crossed $15000 and is expected to grow more in the near future. Knowing the increase in popularity of virtual currencies Reserve Bank of India (RBI) has warned investors regarding the flaws of cryptocurrency as compared to the physical currency. Below are the reasons RBI has provided for warning people who are interested in buying Bitcoins at the moment.
- No company or entity has been authorized by Government of India to deal with any cryptocurrency in India.
- There is a big confusion on the taxability aspect of Bitcoin. Tax experts believe that if someone has been trading or investing in Bitcoins, the gains from the sale of Bitcoins should be included in one’s income tax return.
- Bitcoin wallets can be hacked and since Bitcoin isn’t recognized by RBI, there is no established committee for hearing frauds regarding cryptocurrency.
- Bitcoins can be used for many illegal and unethical online activities.
- RBI in collaboration with central government is planning to launch a legal cryptocurrency for India.
- Bitcoin values are going up and down without any firm evidence.
- Investment in Bitcoins involves big risk as the volatility is very high.
Whether you take it seriously or ignore it but we believe that all these statements of RBI prove that Bitcoin is not here for long
