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Virtual currencies are like Ponzi schemes: Finmin warns investors
Rediff.com

Virtual currencies are like Ponzi schemes: Finmin warns investors

Virtual currencies don't have any intrinsic value and are not backed by any kind of assets. The government on Friday cautioned investors to be wary of virtual currencies like Bitcoin, saying they are like Ponzi schemes with no legal tender and protection.   "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. Rediff.com, 2 weeks ago
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