‘DON’T invest in Bitcoin’ warn India bank despite cryptocurrency surge | City & Business | FinanceHeat Profit
In a statement urging caution the central bank said: “In the wake of a significant spurt in the valuation of many virtual currencies and rapid growth in Initial Coin Offerings, the Reserve Bank of India reiterates the concerns.”
They went on to say Bitcoin has the “economic, financial, operational, legal, customer protection and security related risks.”
There are at least 11 Bitcoin trading platforms in the country with around 30,000 customers around the world actively trading at any given point.
The bank has issued three warnings since 2013 about the risks of the cyber money.
Last month £26milion disappeared from the Bitcoin exchange Tether.
In a statement the exchange said: “We discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker.
“$30,950,010 was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorised Bitcoin address.”
They added that it would not be possible to redeem any of the stolen tokens.
However, hacking is not the only concern those working in the finance sector have about Bitcoin.
Experts have also advised not to trade in the mysterious online currency due to concerns its rapid growth in value will not last.
Nicholas Gregory, CEO of the cryptocurrency business enabler, CommerceBlock, has argued Bitcoin is in a “bubble”.
“However, that means it is not immune, and should not be immune, from price corrections either.
“A significant price correction and the long-term viability of Bitcoin as a major alternative currency are not mutually exclusive.”