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India Cautions Users On Risks Associated With Virtual Currencies
hypnosec writes "The Reserve Bank of India (RBI) has cautioned users of virtual currencies like Bitcoin, Litecoin, and Dogecoin on the risks associated with them and said that it is looking at the use and trading of these currencies. They noted that there are quite a few risks including: theft of digital wallets that are used to store the digital currency, absence of any frameworks to tackle customer problems, disputes and charge backs; exposure to potential losses because of high volatility in value of the virtual currencies, legal and financial risks, and breach of anti-money laundering laws because of lack of complete information on counterparts in a peer-to-peer anonymous / pseudonymous systems."
I love that Dogecoin is apparently a big enough thing now to be mentioned in the same breath as Bitcoin and Litecoin.
Don't use those nasty digital currencies because we have no control over them and make no money on your transactions.
Also because: terrorism, child porn. criminals, insert_scare_word here...
There spawned a couple of new exchange sites in India over the past few weeks. A few that I checked look legit, demanding some sort of official government documents for user identification, making it non-trivial for scammers to jump aboard the train. It is only natural that there is a warning, and those sites already had more or less the same warning on their frontpages. The fact that this warning is on a state level is a good think for bitcoin (and for potential traders) I think.
The three laws of thermodynamics:(1) You can't win. (2) You can't break even. (3) You can't even quit.
I note that there are quite a few risks associated with CASH including:
* theft of physical wallets that are used to store CASH
* absence of realistic application of frameworks to tackle customer problems, disputes and charge backs with CASH.
* exposure to potential losses because of high volatility in value of the CASH currencies
* legal and financial risks assocated with trusting strangers with your CASH,
* and breach of anti-money laundering laws where people can carry CASH because of lack of complete information on tracking of CASH between anonymous random strangers.
so. wonderful. india's announcing something random about bitcoin. great! let's watch the value go up again just like it did in china as it comes to more peoples' attention. yay!
Mining for bitcoins actually donated processing time to Folding at home and SETI... so instead of getting virtual currency for wasting compute cycles, we'd probably cure cancer and contact aliens instead.
READY.
PRINT ""+-0
Dollars, pounds, euros et al have no intrinsic value. And are also volatile (even if not as much as crap to currencies currently are).
Silence is a state of mime.
yes, they do...i'm getting tired of this incorrect meme.
the dollar is backed by "the full faith and credit of the united states government"...yes that means the ability to seize bank accounts and the use of the threat of prison and even guns/bodily harm to get their money to pay its debts.
it's ludicrous to think bicoin has the same feature.
never bring a twinkie to a food fight.
No, that's simply not what a currency is. Never think of a currency as a store of value, but as an aid that makes barter easier. It's a way to measure value, sure, but that's different.
If you want something with intrinsic value, you need to turn your currency into wealth, by which I mean ownership of the means of production. Land, stocks, private businesses, whatever: the only assets with intrinsic value are those which produce something that people want or need. Everything else is mere convention or convenience.
Socialism: a lie told by totalitarians and believed by fools.