Business Mantra News
What is Bitcoin? : Bitcoin is a crypto currency in digital form.
Bitcoins is created in electronic form and though it is paperless currency, Bitcoin is not printed in Dollars or Euros. It is not controlled by regulations.
Bitcoin is mainly used for trading purposes by investors and traders.
As Bitcoin is a virtual/encrypted currency, it would not be safe to deal with the currency, there may cause financial and security related risks.
Despite RBI’s warning to take caution while dealing in Bitcoins, rapid increase has been reported by the domestic users of Bitcoin.
Bitcoin breached $14000 which is remarkable as it raises more than 1000 % since the start of the year.
No other currency has soared so fast as compared to Bitcoin. Hence investors should be advised to caution before dealing with this currency.
The Central Band has been made repeated warnings against the use of Bitcoin.
The RBI has cleared that it has not issued any license or legal authorization to use such type of crypto currency.
It has also warned investors against hacking as it is in digital form, loss of e-wallets, loss of password which would lead to permanent loss of virtual currency and one has to suffer heavy monetary loss.
RBI also said that creation, using and trading in Bitcoins has not approved from any bank or financial regulatory authority.
RBI has cleared that investors or traders who are buying/trading these currencies all will be at their own risk.
This currency has faced high volatility in its value thus users have to bear financial consequences due to fluctuation of rates.