While we were away ... The ministry of finance is the latest to join in issuing a warning on Bitcoin trading and other virtual currencies which are not backed by a government fiat. It also said that the price of Bitcoin is a matter of speculation and likened the trading of virtual currencies to Ponzi schemes. "There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes," the ministry added. Meanwhile, the RBI has cautioned users thrice already. The latest warning came on February 1. It said that any user, holder, investor, or trader dealing with cryptocurrencies would be doing so at their own risk. The government added that it and the Reserve Bank of India (RBI) hasn't authorized virtual currencies as a medium of exchange nor has any regulator in India has given a licence to any exchanges. It again cautioned persons dealing with virtual currencies to consider these facts and beware the risks in dealing with them. Currently, the price of Bitcoin in India stands at around Rs 8,40,465.52 ($13,191) and the price has been volatile during the entire month. On Christmas Eve, the price of Bitcoin stood at $14,500. However, companies engaged with Bitcoins in India took a more defensive tone to the ministry's warning. "I see this more as a cautionary note from government, advising people to be…
